JCPenny charging $799 for Xbox 360
by Blake Snow 
{ Nov 29th 2005 at 5:30PM }
JCPenny is charging $799 for the Xbox 360 with no included extras. That's a 100% markup of the MSRP, and you have to
wait two weeks to receive the item from their online store. An anonymous tipster writes: "I called [JCPenny]
customer service and they told me it was a corporate decision to charge this much. They were aware that the
MSRP is $399, and it was not a price mistake."
Could be cheaper than what the systems are going for on eBay, but will other retailers follow suit?
Reader Comments (Page 1 of 2)
Stephen @ Dec 18th 2005 9:02PM
Okay...they can go to hell. They are not too much difference from ebay.
MrHoju @ Dec 18th 2005 9:02PM
Are major retailers even allowed to do this? That sounds like price gauging and something that Microsoft would want to fight against.
I mean it is one thing to let the individual consumer sell their own units on ebay, but for JCPenny?
Mark @ Dec 18th 2005 9:02PM
that's jc penny's motto, "JC Penny's dickin' ya in the a for the last 50 years," right?
scampy @ Dec 18th 2005 9:02PM
If i cared, i'd file a complaint with someone...but i don't and won't.
Tony Shum @ Dec 18th 2005 9:02PM
Isn't that aginst the rule? Let's complaint to BBB and file a lawsuit.
Brando @ Dec 18th 2005 9:02PM
The Sad part is people will still buy it....
matt @ Dec 18th 2005 9:02PM
MS won't be shipping them any more units...
Guillermo @ Dec 18th 2005 9:02PM
Sorry, but they do include extra the play and charge kit and battery pack. Still, charging $400 for those is plain wrong.
Corey @ Dec 18th 2005 9:02PM
Hmm...I searched for it on their site, found it, and it said the product wasn't available. That could mean anything though...
vc @ Dec 18th 2005 9:02PM
Nothing illegal about this.
Rare Hare @ Dec 18th 2005 9:02PM
fuck JC Penny's. sorry that sounds rude, but seriously..
Vasco @ Dec 18th 2005 9:02PM
Indeed. Fuck JCPenny.
Fearless Freep @ Dec 18th 2005 9:02PM
Who's putting a gun to anyone's head to buy from JC Penney? I think it's a smart business move on their part because of Microsoft's fabricated shortage. When an item becomes a much sought-after commodity, why shouldn't they make a profit if people are willing to pay the asking price?
If none of the $799 units have sold by Christmas Day, look for the price to drop shortly thereafter.
This is just like hotels and airlines that immediately double or triple their rates during holiday season or major conventions.
The1 @ Dec 18th 2005 9:02PM
Isn't this illegal? MS should stop that crap. I am glad I do not shop at that CHEAP store. Since they cannot make money selling their other products they start selling the X360. SAD!!!!!!
Chiablo @ Dec 18th 2005 9:02PM
JCPenney is very smart. They buy the systems and hold out on selling them until all other retailers are sold out. Then they mark up the pricing and they can easily get away with it because of the shortage.
Whoever thought of this probably got a raise over it... but it still pisses off all of the consumers.
Jack @ Dec 18th 2005 9:02PM
They're just cashing in for the situation. Strange how they have consoles and others are sold out, seems like they were planning this.
metal_gear_jello @ Dec 18th 2005 9:02PM
MSRP = Manufacture's SUGGESTED Retail Price.
Welcome to capitalsim.
dawggpie @ Dec 18th 2005 9:02PM
#13, i doubt the people going there to buy Xboxes are their regular customers so I don't think they're too worried about pissing people off. I hope MS retaliates strongly against them in support of their customers.
BigKountry @ Dec 18th 2005 9:02PM
I thought JC Penney was a clothing outlet.
This is like that time when that store in NYC was selling PSP games for like $250 bucks.
Jago @ Dec 18th 2005 9:02PM
"Isn't that aginst the rule? Let's complaint to BBB and file a lawsuit."
The BBB can't do anything...they aren't even a government run organization. A company can have an obvious bad reputation and it will probably have no negative feedback on the BBB database.
Plus...why would you even be buying electronics at a department store to begin with? This is the 1980's...that's why we have stores like Best Buy, Circuit City, etc.
Chris @ Dec 18th 2005 9:02PM
That NYC store was changing the MSRP which is illegal ... charging more for a product is not illegal.
It's economics. Supply and Demand ... not saying it's right ... but then splashing a red blob of paint on a canvas, calling it art, and selling it for $12,000 isn't right in my books either ... but we're allowed to do it.
Jago @ Dec 18th 2005 9:02PM
CORRECTION: This "ISN'T" the 1980's...damn typos!
Bloo @ Dec 18th 2005 9:02PM
"If i cared, i'd file a complaint with someone...but i don't and won't."
But you cared enough to post...
Observer @ Dec 18th 2005 9:02PM
If anything, we should be emailing Sony and Nintendo asking that they not provide their systems to JCPenny for their own launches, that those systems would sell just as easily at places like best buy or gamestop.
MrHoju @ Dec 18th 2005 9:02PM
Even though this may or may not be legal, you would still think that Microsoft would put pressure on JCPenny's to change the price since their prices are not aligned with other retailers.
If this were a true example of supply and demand, then you would see many more retailers charging premiums for the console.
I would think that MS would have a vested interest in controlling or influencing their distribution channels.
This is different that people buying the 360 and reselling it. This is a retailer that is marking it up.
Chris @ Dec 18th 2005 9:02PM
I do think is sucks that JCPenny is increaseing the price but they didn't create the situation that allows them screw consumers.
Blame Microsoft. They hyped up the launch of the 360 then failed to deliver the units to meet demand -- thus CREATING this situation.
I have a 360 and like what Microsoft has done -- but they *REALLY* blew the launch.
Brad @ Dec 18th 2005 9:02PM
Capitalism is a good thing. You don't like it don't buy from them. They may get away with it from a few customers but most will be smart enough not to pay that much.
Plus MS may just no longer sell JCPenny any units in the future until demand goes down. There is always someone trying to sucker the suckers.
Cyberclaws @ Dec 18th 2005 9:02PM
Wow. I mean WOW!
So who here is gonna pay that much? If people are willing to pay over 1,000 dead presidents for it on eBay, what's to say they won't pay this much from the store?
Radiant Silvergun @ Dec 18th 2005 9:02PM
>>Chris: Blame Microsoft. They hyped up the launch of the 360 then failed to deliver the units to meet demand -- thus CREATING this situation.
I have a 360 and like what Microsoft has done -- but they *REALLY* blew the launch.<<
They saw how well Sony did with the PS2 launch and are doing the same thing ^^
jovan @ Dec 18th 2005 9:02PM
Who buys an xbox at jc penny anyways. Everyone who bought a 360 is wasting their money. There is going to be a price cut soon.
Jeb @ Dec 18th 2005 9:02PM
There's an easy way around this...
Buy it from them, and return it in store within 90 days for a full refund. Surely you'll have been able to track down another by then.
buckfiftyplustax @ Dec 18th 2005 9:02PM
the BBB really need to investigate this
Axeman463 @ Dec 18th 2005 9:02PM
I bought 2 and sold 1 on eBay for $770+. JCPenney is just cutting out the middleman, and they didn't have to camp put at Best Buy to do it.
Jago @ Dec 18th 2005 9:02PM
I'l say it again...the BBB CAN'T DO ANYTHING!!!
They don't even have the power to sue a company that is doing something like this. All they can do is find a way to "right" a wrong that a company did to someone.
Jeremy @ Dec 18th 2005 9:02PM
I see we have our fair share of people who like posting things like
"This is legal"
"F*** JC Penney"
"Waaawwaaawaaa, why isn't the government doing anything about this, waaawaaaaaaaa"
Grow up, this is capitalism, this isn't a socialistic state in which the government controls everything. I would vent my frustration on the consumers who purchase Xbox 360s from JC Penny, not JC Penny itself.
This, to the best of my knowledge isn't illegal, why should it be illegal? Do you people favor a law saying "No one can sell above the MSRP?"
Again, I say to you, grow up!
carlos @ Dec 18th 2005 9:02PM
this is stupid ms better send units out weekly or lets boycott microsoft
Alchemy @ Dec 18th 2005 9:02PM
Tech Depot is doing it too. They were charging $599.99 for the premium but now they lowered it to $499.99 Still a rip off.
http://www.techdepot.com/product.asp?productid=3465708&iid=1249&Hits=58&HKeyword=xbox+360
Cyberclaws @ Dec 18th 2005 9:02PM
Ah, but what IF the MSRP was 799.99? And retailers just sold it at 299/399 just to be competitive?
Better yet, what if the government said, "Ok, since games are so violent and make so much money, how about we add a flat rate sales tax of $300 for every console sold and say like $40 dollars for every game/peripheal sold?" Would we be so up in arms for the government to take charge then? I think not. But overall, this is a capitalistic country founded on these values. Just because a company takes advantage of a given situation to make more money is idealistically, the capitalist way. Who are we to complain?
Rare Hare @ Dec 18th 2005 9:02PM
Jeremy: i say "fuck JC Penny" not because i am angry at or frustrated with them, but simply because i think it's a bullshit move and i wouldn't purchase an Xbox 360 from JC Penny if they were the last retail store on earth because of it.
and even still.. since when did it become your job to tell me what i should be frustraterd about or not? that's what i thought, so leave those of us who think that 800 dollars for a 400 dollar system is ridiulous and unfair (especially due to the shortages) alone.
Cyberclaws @ Dec 18th 2005 9:02PM
OR 799.99 could be the MMRP (Manufacturer's MANDATORY Retail Price) =D
tack @ Dec 18th 2005 9:02PM
Nothing illegal here. f'd up, yeah, but definitely legal.
And as far as the BBB is concerned, all they are is a reporting agency. nothing more. They hold no power. (aside from information)
When you complain to them about a company, it goes on the company's record at the BBB. They then track how the company deals with the problem and that to goes in the report.
Then when consumers call the BBB to check up on a company (to see if they're fair to do business with etc) you get the report... They have X amounts of complaints but they tried to rectify them yada yada.. or They've received x amount of complaints and they have not made any effort to responded to the complaint blah blah blah.
I used to work at the LA office in the late 80's (up until it went out of business) The So Cal offices came back in the early 90's.
james @ Dec 18th 2005 9:02PM
The idealistic capitalist way is innovation. To ensure a constant flow of new technologies. This is definitely capitalism, but not in any idealistic sense.
ZeroCorpse @ Dec 18th 2005 9:02PM
Actually, with game consoles the price is locked by the manufacturer. When you choose to sell the console, you sign an agreement that states that you will not change the price that the manufacturer chooses for the device. This only applies to consoles as far as I know, but it is a pretty ironclad agreement. If violated, the company will usually fine the offender and limit their supply of product for a while.
So while not illegal, it is in violation of their price-lock agreement that they signed with Microsoft.
Jago @ Dec 18th 2005 9:02PM
I tried going thru the BBB when I bought my car b/c the place I bought it from was being shady. If I had done things their way the whole process would have taken months and not gone anywhere.
KilgoreTrout XL @ Dec 18th 2005 9:02PM
HAH. I heard this earlier and thought it was bullsh*t.
It isn't illegal. Neither is changing the MSRP, to whomever said that above. That stands for Manufacturer's SUGGESTED retail price. They can charge whatever they want.
Does anyone else find this really funny? Better yet, did anyone buy one from JC Pincher?
Jeff @ Dec 18th 2005 9:02PM
"Nothing illegal here. f'd up, yeah, but definitely legal."
Nope, it is TOTALLY illegal in New York state. So either they won't sell to New York state, or they're breaking the law. (Has anyone from NYS tried to go through the entire ordering process?)
You can sell above MSRP here, but you MUST inform the customer that you are doing so, in BOLD LETTERS. (It cannot be in "the fine print".)
Stores are busted for this fairly often in NYC. Of course, others still get away with it, but only until someone complains.
I'm tempted to write a letter to our resident attack dog Eliot Spitzer about this.
KilgoreTrout XL @ Dec 18th 2005 9:02PM
Jeff:
I imagine that you're referring to a consumer protection statute for NY. You're probably right about it's specific reqs, though in this isolated case, I have to disagree with you.
Microsoft isn't allowed to even suggest what their retailers charge. It's part of their antitrust settlement agreement. Therefore, there is no "official" suggested price for the 360. Just a mere, non-legal, suggestion. JC can charge what they want.
Richard Perkins @ Dec 18th 2005 9:02PM
I hate the 360, microsoft promised all these games and only a few come out. Plus all the games are like 12 hours long. Plus they all have barley next gen graphics. Ohh and did i forget to metion over half the games were ported one way or another. I mean dont get me wrong i love my 360. I just dont like the lies they told. I have been very disaponted with the games. All the games i wanted were delayed until next year Saints row, frame city kill, dead rising, Full auto,and the outfit. P.s if your still reading thank you.
Bloo @ Dec 18th 2005 9:02PM
"I hate the 360, microsoft promised all these games and only a few come out"
Few= 3 to 4. 18 > 3 to 4
"Plus all the games are like 12 hours long"
Thank god. When you have a life, 12 hours is perfect.
"Plus they all have barley next gen graphics"
You need to get a new TV. Badly.
"Ohh and did i forget to metion over half the games were ported one way or another"
Sharing a name does not equal port.
P.S. Anyone who *wants* Saints Row should be banned from posting comments. That was the worst game I've seen out of every E3.
RM @ Dec 18th 2005 9:02PM
17. Posted Nov 29, 2005, 6:01 PM ET by metal_gear_jello
MSRP = Manufacture's SUGGESTED Retail Price.
Welcome to capitalsim.
Cuts up JCPenny Card...........Feel better allready. Won't do business again with a company taking advantage of unsuspecting consumers who don't know any better.
Capitalism at it's best !