Game admits buying 3DS stock from Tesco
The Nintendo 3DS is selling fast; too fast for some.
The staff over at Eurogamer received some documents showing that Game authorised its staff to purchase additional stock of the device from Tesco, taking advantage of a £175 + game bundle, and then sell it on as pre-owned stock.
In response to the document, a Game spokesperson told Eurogamer: 'Some of our stores wanted to move quickly last weekend to build their pre-owned stocks of 3DS at the same time as their local competitors, so we gave them a process to do that. It was not mandatory, and happened in small volumes.'
While stores weren't explicitly ordered to buy up Tesco's stock, the fact that it was authorised company-wide by Game's head office at all is still astounding. By doing this, Game staff took competing, cheaper stock out of the market, while selling its own more expensive bundles.
Have you had trouble getting your hands on a Nintendo 3DS? Does this kind of activity surprise you? Let us know in the forums.
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46 Comments
Discuss in the forums ReplyThis is true. People who want one are probably going to buy it anyway, regardless of an extra £20-30.
As stated above, good buisiness.
As above, its good business, controls demand and keeps prices strong. Better for the games industry (I am aware they don't see the higher prices now, but it means they can keep their price to suppliers higher for longer).
Creating high demand like this is good. The poor miss out, but then they should work harder and become less poor.
They bought it legally, they were notifying people it was not brand new and were selling it used. I'm missing where this was illegal or misleading.
My discounted Kick-Ass DVD from Zavvi had an Asda sticker on it, but I suppose that was just overstock from Christmas. I don't see the problem, pick the best price or the preferred reward scheme, it's not like the Wii where they couldn't be bought for months on end unless you travelled to Germany like some of my brothers' friends.
No, you're not. I'd have thought that Tesco aren't displeased that they sold all their stock.
No one said it was...
Tesco use loss-leading products - they sell some items at a loss as a way to drive customers into the store; they know their customers will want to buy the cheap items but while they're there they'll also buy other things. If GAME employees are buying 3DSs using company money then I doubt they'll be buying anything else. I see it as the lesser of two evils - and I'm happy for anyone to stick two fingers up towards Tesco.
@sp4nky: If Tesco are selling it at a loss then I'm not so sure they would be pleased that it's GAME employees buying them!
I don't really either. There's no victim here, I hardly think Tesco would be selling them at a loss anyway so GAME would be making less than stock bought from Nintendo wholesale. It's not really profiteering, just making sure they have enough stock for their customers.
^ This
Doesn't make it wrong though its just business for them, but I can't help feeling a little pissed off with them about it having missed out due to this behaviour.
Well Asda took all the Childrens' Editions of the last book and flogged them for a fiver in the first weekend, so undercutting Waterstones which has been closing branches at the time and ever since. I made do with the adult version for a tenner. Like TWeak says, any retail chain can take any product and make it the can of beans just to get people in the store.
Everyone sniffs at Tesco, but personally I quite like being able to buy groceries cheaply and conveniently. I struggle to see what the issue with that is - at least the consumer is getting something out of it. With GAME's tactic, the consumer is getting less choice about the retailer, and a higher price for what they were after.
At a place I used to work (a large national retail chain) we had a guy who used to come in and buy our PS2 packages to sell because we were cheaper than him getting bulk stock direct from Sony.
TBH, mistakes can be made like this. Only takes one temp at christmas to file a bunch of stock in the wrong place, and the mistake might not be notices for weeks, even months.
Is it possible to do it? Yes.
Is it moral to do it? No.
Is it to the benefit of the paying customer to do it? Not a chance.
I'm not sure they can sell them as new because GAME bought them retail not wholesale. They might not be used but they are pre-owned.
Knowing people that have worked for Game in the past, this happens more often than you think. If a game is traded in and it's in excellent condition then the majority of the time it's resealed in the back and sold as new. And it's not exclusive to Game either.
If you're not fast etc...
A company buying through consumer channels, thereby taking low-price stock out of the market and keeping the price artificially high... They couldn't have shipped stock between the GAME branches and the Gamestation ones if they were in such a desperate struggle to get stock to necessary places?
same here, that's actually a good business strategy, they are not taking advantage of their customers since they are announcing the stuff as "used". quite a smart move actually,lol
infact, taking stock from tesco customers and putting it in hands of GAME customers, is surely good for GAME customers
Leave your personal slant on the 3DS at the door. This is BAD for consumers.
Yeah. They sold the UK company. Luke Johnson, who went on to sell us on to the now legendery Philip Downer. A man who despite having publishing companies agree to waver debts temporarily to keep Borders operational until future times, where they could pay back and reclaim some credit insurance, sold us down the river to MCR, a company hell bent on liquidating the chain even with a American backer trying to save us. That's right, Borders in the UK was going to be bought out by someone from accross the pond, but MCR rejected his offer because they would make more money liquidating the company than selling it on. It was pretty sad when they started bringing in "new stock" for us to sell when we were clearly in no state to be making orders.
Of course the next chapter is that HMV have lost their credit insurance; owning Waterstones also, meaning, ****, what is going to happen to high street Booksellers?
It's not akin to cartel-esque behavoiur as Tesco aren't part of this. The companies aren't working together to keep prices high.
It's not good for the consumer, but Game is perfectly within its rights to do this. It's a simple process:
Company A makes product
Company B buys product from Company A to sell on
... repeat until product reaches consumer.
There's no technical difference between a company planning on selling the product to another company and a consumer. If Tesco doesn't like this, it's up to Tesco to be more careful about who they sell to.
Well what I had said was selling at the same price (or less) than their own stock, i.e. games, so I was right with my comments.
I still don't see an issue as it is legal for Game to do this, if the consumer misses out on the Tesco offer because of it then they dont have to pay the higher prices offered by Game and should wait for Tesco to get them back in stock. No-one is forcing you to pay the price that Game offer.
A bigger issue IMO is the way that Tesco does sell massively hyped items like this well under the wholesale price to get people in the door, and also (im sure) to squeese out competition in their market, as a lot of the gaming store have pointed out recently with the releases of FIFA and COD
I have to say, its nice seeing the mature response that the bit-tech readership are posting here, as opposed to some other forums where people are literally crying blue murder over this!
I do believe this kind of practice is not allowed by trading standards as it just boils down to price fixing, in fact it wouldn't surprise me if Tesco were in on the whole thing.
I wonder if Trading Standards have been notified?
This is what I love about the good people of this country and their attitudes... I'm alright Jack, f**k you.
What a sad state of affairs :(
It's not price fixing as game does not have a monopoly on the 3DS, if you as a consumer do not wish to buy from game you have the choice to buy from wherever you wish. Hell my local Tesco still has stock of them.
Exactly, if anything I would say that SazBard is the one whos attitude is showing what a sad state of affairs we are in, in that people can get all wound up by something so minor when nothing wrong/illegal has been done.
A 3DS is a luxury item, there is no monopoly as Game is acting as a consumer and buying the product from Tescos and then selling it on second hand, no-one is forcing anyone to pay the price Game is asking (just wait for the price to hit what you are willing to pay), if anything it would be great if Game had bought all these and no-one bought them at that price, egg on their face!
Nice summary, just a shame not all people see it this way...