+Audioboxer Subscriber² Posted October 2, 2009 Subscriber² Share Posted October 2, 2009 Independent UK retailers have reacted angrily to Tesco and Asda FIFA 10 promotions that have seen the supermarket giants selling the game at half its recommended retail price - and called for legislation to prevent the below cost selling of goods."It's bully boy pricing really," Chips MD Don McCabe told GamesIndustry.biz. "Other countries have laws against this selling at a loss for very good reason." McCabe admitted that in the short term consumers get a good price, but said that in the longer term the closing of smaller retailers at the hands of the supermarket giants will result in less choice for those consumers. "Once they've got the whole market they'll expand their profits, reduce the choice and screw the suppliers," said McCabe. And the only thing that can be done is what other countries have, he added, which is to "recognise the insidious march of the supermarkets model is detrimental to the consumer ultimately." "Long term it is detrimental," he added. "It's decreased choice. You just have to look at the amount of suppliers that are screaming holy blue murder over Tesco whose businesses just get driven into the ground by the demands that some of the supermarkets make on them. At the end of the day, the only people who actually benefit from it are Tesco shareholders." "This sort of price slaughtering has been going on for years and it will probably always happen," admited Neil Muspratt, director of SimplyGames, who refered to Tesco's pricing action as "crazy". "The timing of this particular activity is especially unhelpful. Like it or not, software prices are on the increase and selling one of the biggest releases of the year at less than GBP 25 sends a message to consumers that any higher pricing must mean they are being ripped off. "It is also a particularly negative way to start off the all-important Q4 period and reflects badly on the entire industry – but what do they care? We priced FIFA very competitively and our customers received it in their homes today," he added. With the supermarkets selling at below cost, Muspratt even admits to buying his own stock from them. "We protect ourselves by keeping stocks to a minimum and, of course, by dispatching small teams of people into supermarkets to buy our next round of stock." The retail industry is "awash" with others doing the same, said McCabe. "Buy a bit of stock up, wait for the price to go back up, then make your margins. That's retail – or that's the traditional retail model anyway. Supermarkets have turned that model on its head to a certain degree." Many supermarkets had also sold out of all stock of the game by as early as 8.30am this morning following midnight openings which, when considering the offer is only scheduled to run this weekend in the case of some chains, will lead to large numbers of customers leaving disappointed. "We all like cheap prices," acknowledged McCabe, "it doesn't matter whether it's games, bread, whatever." "I understand consumers saying this is a good price, that we should get every game at this price," he says, "but ultimately it will damage the overall market." Source: http://www.gamesindustry.biz/articles/reta...by-supermarkets With the amount we pay for games in amongst publishers like Activision raping us with even higher prices, they should STFU and let us get a deal every now and then. On that note I wouldn't mind Asda/Tesco/Morrisons doing this again with that stupid RRP pricing on MW2 :D I hope. Link to comment Share on other sites More sharing options...
Zarpraz Posted October 2, 2009 Share Posted October 2, 2009 No different to them undercutting your local butcher, green grocer etc. not implying that I think it's a good thing though. Once they remove the competition from small retailers they have total control of pricing, there are already plenty of products that are cheaper from small stores like fruit and veg even meat, but they're becoming an endangered species. Link to comment Share on other sites More sharing options...
coresx Posted October 2, 2009 Share Posted October 2, 2009 We all like cheap prices, boohoo. It's only once in a while. Retailers stocking up from the supermarkets isn't nice either! Media retailers have been on the verge of demise for years, they haven't changed enough to warrant hanging around and customers are going else where. Time will tell in the end. Supermarkets are ***** though. Link to comment Share on other sites More sharing options...
Corris Veteran Posted October 2, 2009 Veteran Share Posted October 2, 2009 Haha, excellent. I would feel sorry for all those "smaller retailers" that sell games, but to be honest, I can't think of any. The only places that sell games are the supermarkets, Tesco, Asda, Sainsburys and Morrisons (Might be missing some), then you have the bigger high street names, GAME, Gamestation (owned by GAME), HMV, and umm, that's pretty much it, most places have closed down completely. Serves them right for wanting to charge ?49.99 in store for a game, and they get away with it as they have killed off most of the retail competition, and prices are only getting higher. Personally I hope this happens for Modern Warfare 2, screw publishers and retailers trying to get ?55 out of us for one game. It could make me shoot rainbows and unicorns out my ass and it still wouldn't be worth it:p:p Link to comment Share on other sites More sharing options...
Sandor Posted October 2, 2009 Share Posted October 2, 2009 "and called for legislation to prevent the below cost selling of goods" how about no. Link to comment Share on other sites More sharing options...
jelli Posted October 2, 2009 Share Posted October 2, 2009 They can go and QQ and GTFO, all you have to do is look at MW2 pricing and realise we are getting screwed over just for the name of the IP. Link to comment Share on other sites More sharing options...
+LogicalApex MVC Posted October 2, 2009 MVC Share Posted October 2, 2009 Err legislation to prevent the under cost selling of goods... Uh no. It is very difficult for a company to offer prices below cost and hope to drive out competitors. And an industry like video game selling is definitely not one to be hurt by such a practice. Isn't that how sales in general work? I mean you drop the price of eggs by 50% and take a loss hoping they'll buy bread at your 30% markup while there too... He wants to outlaw that? Horrible for consumers :| Link to comment Share on other sites More sharing options...
BGM Posted October 2, 2009 Share Posted October 2, 2009 Isn't that how sales in general work? I mean you drop the price of eggs by 50% and take a loss hoping they'll buy bread at your 30% markup while there too... He wants to outlaw that? Horrible for consumers :| yes, it's called a loss leader ;) Link to comment Share on other sites More sharing options...
peacemf Posted October 2, 2009 Share Posted October 2, 2009 im not paying ?39.99 for a crap game, or ?49.99 for an ok game! i buy use:p:p Link to comment Share on other sites More sharing options...
The Teej Posted October 2, 2009 Share Posted October 2, 2009 But surely cutting prices in half means that the publishers get half as much money in return? If so, it's hardly fair for supermarkets to do this. Link to comment Share on other sites More sharing options...
Hot Posted October 2, 2009 Share Posted October 2, 2009 Forget loss leaders. If you can't sell goods below cost, how exactly are you supposed to liquidate your older stock? Seeing articles like this or what Opera is putting Microsoft through is seriously making me wonder whether the first thing taught in European business schools is how to cry like a little girl. Link to comment Share on other sites More sharing options...
BGM Posted October 2, 2009 Share Posted October 2, 2009 But surely cutting prices in half means that the publishers get half as much money in return? If so, it's hardly fair for supermarkets to do this. no, they are selling at below cost.. so selling for less than it costs them to buy, the publishers still get the correct amount. Link to comment Share on other sites More sharing options...
The Teej Posted October 2, 2009 Share Posted October 2, 2009 no, they are selling at below cost..so selling for less than it costs them to buy, the publishers still get the correct amount. Ohh.... then I'm all for cheaper prices (Y) I always thought the issue with lower prices was the fact that the publishers get ripped off too. Gee, don't I feel stupid now :laugh: Link to comment Share on other sites More sharing options...
AgentGray Posted October 2, 2009 Share Posted October 2, 2009 companies don't have "total price control" anymore. ANYWHERE. Jack up prices too high? amazon.co.uk, or any of hundreds of other vendors available online... Link to comment Share on other sites More sharing options...
acnpt Posted October 2, 2009 Share Posted October 2, 2009 I think its fantastic. I bought the game cheap, and could do some shopping at the same time :laugh: The ?24.97 price actually persuaded me to buy the game, instead of 'obtaining' it.:pirate:: I hope the same will happen with MW2, its a big enough game, just hope Tesco + Asda realise this. The supermarkets might not even be making a loss, just a couple pence profit. The indies will have their place with the second hand market, but I've only ever seen one indie games store, and it was **** hole anyway. Link to comment Share on other sites More sharing options...
ncoday Posted October 2, 2009 Share Posted October 2, 2009 So everyone ****es and moans when Intel allegedly does this kind of stuff as being anti-competitive, but now it is ok? Link to comment Share on other sites More sharing options...
+Audioboxer Subscriber² Posted October 2, 2009 Author Subscriber² Share Posted October 2, 2009 So everyone ****es and moans when Intel allegedly does this kind of stuff as being anti-competitive, but now it is ok? What has Intel got to do with a few supermarkets having a sale on a game? This happens rarely in supermarkets, they do tend to sell games fairly cheap, but not usually something like ?24 for a brand new title. Link to comment Share on other sites More sharing options...
jelli Posted October 3, 2009 Share Posted October 3, 2009 So everyone ****es and moans when Intel allegedly does this kind of stuff as being anti-competitive, but now it is ok? Actually I think people "****es and moan" when Intel bribes companies to only supply their processors and not those of competition. Link to comment Share on other sites More sharing options...
Dotdot Posted October 3, 2009 Share Posted October 3, 2009 Films are just as big budget as games now and vice versa. ?15 a Dvd .. ?40+ a Game. Actual cost of DVD/BLU Disc 5p. This has been on the go since the days of cartridges which cost a fortune to make compared to discs were common format. ?40-60 a game and regular out cry at the pricing of games. Retailers youve had it good far too long. Time to expect that now the markets have grown so has interest and you dont hold the monopoly anymore. Besides the money small independants make on Swap in sales and such is nice aswell. So they cant really moan to much there, as when the supermarkets shift a load of unwanted copys and folk start trading in there games then they can appeal to that strength. Link to comment Share on other sites More sharing options...
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