If you were confused by the presence of a pre-owned 3DS on the shelves of your local GAME outlet on the handheld's launch weekend, Eurogamer's uncovered a possible shady explanation. According to an unnamed source who works for the retailer, a company memo encouraged GAME employees to use money from their registers to purchase a 3DS and game bundle from its competitor, Tesco, for the discounted price of £209.90. They could then trade the merchandise back to GAME for the exact same price.
The memo described this maneuver as "a great opportunity to gain 3DS consoles and games for your store's pre-owned stock." Each pre-owned system could then be "set at the same price as mint due to unexpected supply shortage on the market and the quality of the stock." However, the memo instructs employees not to sell the pre-owned handhelds until the mint hardware is sold out, prohibiting clerks from "up-selling" the used merch.
The document describes these shopping runs as "not mandatory," but Eurogamer reports one GAME employee said his store was reprimanded for not participating.
Reader Comments (46)
Posted: Mar 29th 2011 9:22PM Dalrint said
While that's pretty shady, it's not actually wrong...
Except ethically.
Except ethically.
Posted: Mar 30th 2011 1:36AM DrDrew Pinsky said
@Dalrint Violating ethics is wrong though. The upside though is that buying used from GAME basically means you're getting a new 3DS for less money, which isn't a bad deal.
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Posted: Mar 30th 2011 2:21AM Garst said
@DrDrew Pinsky
No it doesn't, it actually means you'll be buying used at full price from GAME. According to the memo, the stores are supposed to hold onto the "used" 3DS systems until it's out of stock everywhere. Then they're going to sell the systems that they got at a discount for full price because there is a demand for the system. They aren't planning on selling the "used" systems at a discount.
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No it doesn't, it actually means you'll be buying used at full price from GAME. According to the memo, the stores are supposed to hold onto the "used" 3DS systems until it's out of stock everywhere. Then they're going to sell the systems that they got at a discount for full price because there is a demand for the system. They aren't planning on selling the "used" systems at a discount.
Posted: Mar 30th 2011 2:48AM 3dpenguin said
@Dalrint
Actually that could be construed as intentional fraud and they could be sued by any seller they did this to for using a discount under false pretences and then returning the game for a full refund. It would be one thing if they sold the games as used too, but they are refunding them.
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Actually that could be construed as intentional fraud and they could be sued by any seller they did this to for using a discount under false pretences and then returning the game for a full refund. It would be one thing if they sold the games as used too, but they are refunding them.
Posted: Mar 30th 2011 1:06PM JCDoe said
@3dpenguin
That isn't correct.
Fraud is a concept in tort (contract) law. In tort law, fraud has two components: 1) intentional deceit, and 2) unfair profit at another's expense.
First of all, who was deceived? Tesco? They sold the products for a discounted price, and GAME employees bought the products for this. That contract was perfectly above board. Then, the GAME employees sold their 3DSs to GAME, who chose to give them the exact price they paid at Tesco. Again, perfectly above board. Third, GAME is going to sell these units at an elevated market price, should there be a shortage of product. Those who buy these "used" 3DSs for more than they were new are doing so knowing fully well the MSRP.
Since no one is being deceived, there is no fraud.
Now where GAME "might" get into trouble is their distribution contract with Nintendo. Nintendo will want their hardware to remain available in retail channels at affordable prices. No products, no money. I wouldn't be surprised if this violated several aspects of their distribution contract, which could mean GAME will /only/ be selling used 3DSs soon . . . :)
Oh, and I still think GAME are dicks for doing this.
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That isn't correct.
Fraud is a concept in tort (contract) law. In tort law, fraud has two components: 1) intentional deceit, and 2) unfair profit at another's expense.
First of all, who was deceived? Tesco? They sold the products for a discounted price, and GAME employees bought the products for this. That contract was perfectly above board. Then, the GAME employees sold their 3DSs to GAME, who chose to give them the exact price they paid at Tesco. Again, perfectly above board. Third, GAME is going to sell these units at an elevated market price, should there be a shortage of product. Those who buy these "used" 3DSs for more than they were new are doing so knowing fully well the MSRP.
Since no one is being deceived, there is no fraud.
Now where GAME "might" get into trouble is their distribution contract with Nintendo. Nintendo will want their hardware to remain available in retail channels at affordable prices. No products, no money. I wouldn't be surprised if this violated several aspects of their distribution contract, which could mean GAME will /only/ be selling used 3DSs soon . . . :)
Oh, and I still think GAME are dicks for doing this.
Posted: Mar 30th 2011 6:14PM Mortim said
@Dalrint
GAME occasionally has offers that can be exploited in much the same 'legal, but perhaps not ethical' manner and are obliged to abide by the terms and conditions they themselves set.
The run-up to the last DS launch was a good example of GAME opening themselves to such dubious tactics within the market. They offered a £2.50 trade-in value (Policy was read differently dependent on store manager) for ANY DS game to bolster the amount of pre-owned software they had to offer.
Needless to say there's an awful lot of already pre-owned software available for less than that, and reports came in that people racked up quite a bit on their loyalty cards before it was all over.
I suppose GAME are just as open to legally playing the market any way the can as much as your average budding consumer is. For much the same reason.
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GAME occasionally has offers that can be exploited in much the same 'legal, but perhaps not ethical' manner and are obliged to abide by the terms and conditions they themselves set.
The run-up to the last DS launch was a good example of GAME opening themselves to such dubious tactics within the market. They offered a £2.50 trade-in value (Policy was read differently dependent on store manager) for ANY DS game to bolster the amount of pre-owned software they had to offer.
Needless to say there's an awful lot of already pre-owned software available for less than that, and reports came in that people racked up quite a bit on their loyalty cards before it was all over.
I suppose GAME are just as open to legally playing the market any way the can as much as your average budding consumer is. For much the same reason.
Posted: Mar 29th 2011 9:23PM SMTDante said
Questionable ethics are questionable.
Posted: Mar 29th 2011 9:27PM PointlessPuppies said
I feel stupid. I've read this article 3 times already and I can't figure out why GAME would even do this and why it would be good for their business. So they anticipate the bundle selling out at Tesco and want GAME to have them in stock to attract the customers looking for that same bundle? Is that it? Why couldn't they just, uh, make a similar bundle instead of essentially stealing stock from the competitor?
Posted: Mar 29th 2011 9:37PM Jim Halpert DM Xbox Live said
@PointlessPuppies They bought them at a discounted price from Tesco, sold it to themselves used at the same discounted price, and then intended to sell the them used for the same as the retail price of a new unit due to the high demand.
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Posted: Mar 29th 2011 9:39PM Domino2097 said
@PointlessPuppies
Stores get more money from pre-owned stock all of it in fact although maybe not on hardware. Which why they shouldn't be be allowed to do this.
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Stores get more money from pre-owned stock all of it in fact although maybe not on hardware. Which why they shouldn't be be allowed to do this.
Posted: Mar 29th 2011 9:28PM CaptainProtonX said
"...his store was reprimanded for not participating."
Store Manager: "Listen, Mate. You don't HAVE to do it. But I also don't have to kill your puppy."
Associate: "Uh..."
Store Manager: "Yeah...*smiles*"
Store Manager: "Listen, Mate. You don't HAVE to do it. But I also don't have to kill your puppy."
Associate: "Uh..."
Store Manager: "Yeah...*smiles*"
Posted: Mar 29th 2011 9:29PM ticklefist said
Sounds like business to me.
Posted: Mar 29th 2011 9:46PM MLC said
Damn, that's crazy!
And people be saying GameStop is bad...
And people be saying GameStop is bad...
Posted: Mar 29th 2011 11:26PM PN04 said
@MLC
Gamespot IS bad. When you open up a game just for the sake of using it for advertisment, allow the box to get beaten up and the game to sit in a drawer for who knows how long getting possible scratches and dings and then sell it as new, that's the definition of shady. Then there's the buying up of rare or small print run games to have a monopoly on it in their area they're basically doing the same thing.
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Gamespot IS bad. When you open up a game just for the sake of using it for advertisment, allow the box to get beaten up and the game to sit in a drawer for who knows how long getting possible scratches and dings and then sell it as new, that's the definition of shady. Then there's the buying up of rare or small print run games to have a monopoly on it in their area they're basically doing the same thing.
Posted: Mar 30th 2011 12:22AM Ospov said
@PN04
You know the only way to avoid that is to have all of the games behind glass cases like they do at Wal-Mart, right? How annoying would it be to have to get the attention of a worker every time you wanted to pick out a game? And then if everybody was trying to get their attention it would take 30 minutes just to get your game out of the case and it would just completely slow down the entire store since there's usually only 2 or 3 people working at a time. So unless you can find a better solution to the problem, stop complaining.
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You know the only way to avoid that is to have all of the games behind glass cases like they do at Wal-Mart, right? How annoying would it be to have to get the attention of a worker every time you wanted to pick out a game? And then if everybody was trying to get their attention it would take 30 minutes just to get your game out of the case and it would just completely slow down the entire store since there's usually only 2 or 3 people working at a time. So unless you can find a better solution to the problem, stop complaining.
Posted: Mar 30th 2011 12:41AM SynthOno said
@Ospov You already do have to get the attention of a worker to get a game. Because they're in the big cabinet behind them. And you have to ask for it. Plus you have to wait while they put the game back in the case. You just get a shitty beat up box for your trouble.
There are two solutions. There is the CD store solution, which is to put a thingy on the bottom of the case removed at the counter. This is used in CD stores which sell games a lot more lately, and some other stores do it now as well.. There is also the jewelry store approach, where the games are either lined up on the walls or in a glass case, and the employees are behind the case. I've seen both used successfully, and my favorite game store in the world - they had a huge variety of stuff, including really rare stuff and really old stuff - used the jewelry store solution.
The Gamestop solution is inefficient, isn't significantly more secure than other solutions and the consumer doesn't benefit. Don't know why you defend it. Or, well, shop there.
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There are two solutions. There is the CD store solution, which is to put a thingy on the bottom of the case removed at the counter. This is used in CD stores which sell games a lot more lately, and some other stores do it now as well.. There is also the jewelry store approach, where the games are either lined up on the walls or in a glass case, and the employees are behind the case. I've seen both used successfully, and my favorite game store in the world - they had a huge variety of stuff, including really rare stuff and really old stuff - used the jewelry store solution.
The Gamestop solution is inefficient, isn't significantly more secure than other solutions and the consumer doesn't benefit. Don't know why you defend it. Or, well, shop there.
Posted: Mar 30th 2011 1:43AM DrDrew Pinsky said
@Ospov The problem is more that just because they're willing to repackage a display case and sell it as new, who is to say they don't do that for trade-ins of newer games?
Also Amazon usually gives out good deals on new games and does excellent pre-order shipping, so there's really no good reason to shop at a POS like Gamestop in the first place.
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Also Amazon usually gives out good deals on new games and does excellent pre-order shipping, so there's really no good reason to shop at a POS like Gamestop in the first place.
Posted: Mar 30th 2011 6:28AM OrangeGamer said
@Breakdown I remember the days of Funcoland/Early Gamestop where they did just that. There was ONE display box, and new games were kept behind the glass case at all times. Now there's that policy where every new game(aside from perhaps games they just got in that week) are opened, and then the game sits in a paper sleeve getting light scratches. What I didn't like about this model was that the guy who gave me Phantasy Star Portable 2 used the wall box to sell me the game for full price, and then just opened another one to put another empty box on the wall. There's a DLC code in there that allows for online play, and you cannot get one if you buy the game used(or someone steals the DLC card from the box). I wonder if people will be stealing in-box DLC cards next.
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Posted: Mar 30th 2011 9:38AM Johnnynumber5 is powered by cell said
@MLC
Gamestop also let's employees check out those display games a week after they released. I bought a "new" copy of chrono trigger that had a 40 hour save file on it! That isn't new, it's used. I've also had the employee at the register refuse to return my "new" game because it was opened! Problem is I bought it that way ... Still had the "new $59.99" sticker on the front and I made the clerk write that it was already opened on the reciept! I just asked for the number of the district manager. He called the store 5 minutes later and told the punk kid to return it ... It wiped that smart ass grin off his face. Since that day I absolutely refused to buy a new game from Gamestop that was a display box / employee check out copy. Those games should be sold as used. If it's been opened and played or just opened it's no longer new.
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Gamestop also let's employees check out those display games a week after they released. I bought a "new" copy of chrono trigger that had a 40 hour save file on it! That isn't new, it's used. I've also had the employee at the register refuse to return my "new" game because it was opened! Problem is I bought it that way ... Still had the "new $59.99" sticker on the front and I made the clerk write that it was already opened on the reciept! I just asked for the number of the district manager. He called the store 5 minutes later and told the punk kid to return it ... It wiped that smart ass grin off his face. Since that day I absolutely refused to buy a new game from Gamestop that was a display box / employee check out copy. Those games should be sold as used. If it's been opened and played or just opened it's no longer new.
Posted: Mar 30th 2011 9:53AM PointlessPuppies said
@Johnnynumber5 is powered by cell
I wouldn't be surprised if it was that same punk kid who made the 40 hour save file in the first place.
I will never understand why anybody shops at GameStop. For new games there's absolutely no shortage of places to buy from and for used games online used game sites (obviously NOT GameStop's) are far cheaper and ensures more money goes to the person selling the game rather than the store making the transaction.
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I wouldn't be surprised if it was that same punk kid who made the 40 hour save file in the first place.
I will never understand why anybody shops at GameStop. For new games there's absolutely no shortage of places to buy from and for used games online used game sites (obviously NOT GameStop's) are far cheaper and ensures more money goes to the person selling the game rather than the store making the transaction.
Posted: Mar 30th 2011 12:56PM Ospov said
@SynthOno
I'm not really defending it (although it may have seemed like I was), but I am sick of people complaining about it all the time. I know most of their complaints are completely valid, but that doesn't mean I want to read about it every day. As a lot of other people pointed out: if you don't like it, then don't shop there. Pretty simple.
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I'm not really defending it (although it may have seemed like I was), but I am sick of people complaining about it all the time. I know most of their complaints are completely valid, but that doesn't mean I want to read about it every day. As a lot of other people pointed out: if you don't like it, then don't shop there. Pretty simple.
Posted: Mar 29th 2011 9:53PM Spunky Monkey 190906 said
They do the same thing with games, it would explain how a game that only just released that day somehow finds itself in the Preowned section. I saw Killzone 3 in there the other day, what made me laugh is that they were opposite each other, on one shelf was 'NEW RELEASES' and Killzone 3 was £69.99, on the shelf opposite was 'PREOWNED' and there sat another copy of Killzone 3 for $59.99. Now maybe I'm going nuts here, but given that the game released the day before I saw that, either someone hated the game after 5minutes of playing it they returned it that day, or shady business tactics are going on here :D
Posted: Mar 29th 2011 10:00PM JRMG said
It would be funny if Tesco did the same thing to GAME...
Posted: Mar 29th 2011 10:07PM Nook said
capitalism. bringing you shit in 3ds boi!!!!
Posted: Mar 29th 2011 10:09PM ouenwoof said
You remember when you played Super Metroid and got the reserve tank, you thought, "well, why didn't they just give me an extra energy tank, it all goes to the same purpose, right?".
That's kind of what this is like.
That's kind of what this is like.
Posted: Mar 29th 2011 11:03PM mahouneko said
Isn't that known as defrauding your customers?
Posted: Mar 29th 2011 11:09PM TCJJ said
Sounds like they want to create more business for themselves. However, they'll probably end up giving Tesco more. It maybe be bad ethics, but it's also a double-edged sword for GAME. It's also hilarious. I feel sorry for the suckers who fall for the pre-owned consoles, because it should be kinda obvious that something is fishy with a brand new system.
Posted: Mar 29th 2011 11:30PM PN04 said
@TCJJ
What they're doing is gaining a profit for selling the discounted game systems at a higher price than the discount price of the unit at the other store. If they got it for 209, they can then sell it for 225, still less than the 250 price (or the euro equivolent) and while they might make only a small profit on these "used" systems they're also depleting the stock of their competitor and making them look like the place to go for the system as well as the games that customers would no doubt want with it.
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What they're doing is gaining a profit for selling the discounted game systems at a higher price than the discount price of the unit at the other store. If they got it for 209, they can then sell it for 225, still less than the 250 price (or the euro equivolent) and while they might make only a small profit on these "used" systems they're also depleting the stock of their competitor and making them look like the place to go for the system as well as the games that customers would no doubt want with it.
Posted: Mar 30th 2011 1:23AM (Unverified) said
Would be funny if Tesco got hold of that stock for like £100 a unit (I know its not possible) Which means that in the long run they will be making a lot more profit than GAME.
I feel "sorry" for Tesco over this... Shady work ethics are shady...
I feel "sorry" for Tesco over this... Shady work ethics are shady...
Posted: Mar 30th 2011 1:52AM Lekko said
Because, if Tesco runs out of stock, and GAME has stock, then they sell the unit. They would make no profit off the sale of the 3DS, but they would profit off the game sales and accessories, which would be natural add-ons if you were to just buy the unit itself.
Posted: Mar 30th 2011 3:24AM spin cycle said
I saw this happen at my local Electronics Boutique for a launch. I think it was the PS2 launch.
I was hanging around waiting to get my PS2 and one of the employees pulled out a large stack (maybe as many as 50) of Toys R' Us PS2 preorder slips.
There was no forced bundling for PS2, so they had pre-ordered PS2s from TRU for first day pickup in case they didn't get their PS2s. They had gotten their PS2s but not as many as they had sold, so they went over and picked up at lest some of the pre-orders.
The retailer markup on a PS2 was less than $10 (IIRC), so they only had to eat $10 or so and in exchange they were able to sell each customer who received a PS2 at least one game If not more, and probably a 2nd controller too. All of these items were in plentiful supply and they received their usual markup on them which was substantial.
I was hanging around waiting to get my PS2 and one of the employees pulled out a large stack (maybe as many as 50) of Toys R' Us PS2 preorder slips.
There was no forced bundling for PS2, so they had pre-ordered PS2s from TRU for first day pickup in case they didn't get their PS2s. They had gotten their PS2s but not as many as they had sold, so they went over and picked up at lest some of the pre-orders.
The retailer markup on a PS2 was less than $10 (IIRC), so they only had to eat $10 or so and in exchange they were able to sell each customer who received a PS2 at least one game If not more, and probably a 2nd controller too. All of these items were in plentiful supply and they received their usual markup on them which was substantial.
Posted: Mar 30th 2011 4:09AM Cube said
I'm confused as to how GAME are defrauding their customers. Their customers will go in, buy a pre-owned console and get given a brand new one instead.
Posted: Mar 30th 2011 7:18AM VeeDeeVee said
I stopped visiting GAME years ago. They're a terrible place to buy games from.
Hey to those who still go - do they still sell brand new games as second hand/unsealed? You can't trust a company that tamper with manufacturers seals like that and expect to class it as "new".
Or the time a friend went to buy a DSi... they had just the display model left and sold it as new.
I swear I want to punch GAME. And since they took over Gamestation they've been going down the pan too.
The only good place left are Grainger Games and supermarkets. And those little independent shops that defy all odds and be awesome.
Hey to those who still go - do they still sell brand new games as second hand/unsealed? You can't trust a company that tamper with manufacturers seals like that and expect to class it as "new".
Or the time a friend went to buy a DSi... they had just the display model left and sold it as new.
I swear I want to punch GAME. And since they took over Gamestation they've been going down the pan too.
The only good place left are Grainger Games and supermarkets. And those little independent shops that defy all odds and be awesome.
Posted: Mar 30th 2011 7:53AM lowey said
It's not the first time GAME have done this it seems, there were reports of them doing it with supermarkets other loss-leading games they've sold. Smells of desperation to me. Given how ridiculous prices can be in there, i'm not suprised they're slowly failing and have resorted to such tactics.
The only way i'd ever buy from their stores is via some of their not so bad trade-in deals on newer games, but even then you could pick and choose between multiple stores who make similar offers. Their online store sometimes has pretty good deals too (at least eventually), but it rarely matches up instore.
The only way i'd ever buy from their stores is via some of their not so bad trade-in deals on newer games, but even then you could pick and choose between multiple stores who make similar offers. Their online store sometimes has pretty good deals too (at least eventually), but it rarely matches up instore.
Posted: Mar 30th 2011 9:44AM Johnnynumber5 is powered by cell said
If you choose to sell something you can't really get mad that people are buying it and reselling it for profit.
Posted: Mar 30th 2011 11:52AM gevenstaines said
buy low, sell high
Posted: Mar 30th 2011 12:51PM AxelSteelBMX said
Dear GAME,
Please STOP.
Please STOP.
Posted: Mar 30th 2011 6:35PM ziltoidtheomniscient said
as somebody that works for the company
this is completely true.
we did indeed get this memo, and we all did this after our midnight launches, and again on friday afternoon, and on saturday as well.
our store has 30~ extra units, and we'll be selling them at £25~ profit a piece.
we got a memo this morning informing us to deny comment and forward any questions to our customer services, if asked.
i for one welcomed the ability to use somebody elses money to earn £20k worth of clubcard points. oh yes.
this is completely true.
we did indeed get this memo, and we all did this after our midnight launches, and again on friday afternoon, and on saturday as well.
our store has 30~ extra units, and we'll be selling them at £25~ profit a piece.
we got a memo this morning informing us to deny comment and forward any questions to our customer services, if asked.
i for one welcomed the ability to use somebody elses money to earn £20k worth of clubcard points. oh yes.
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