News UK game retailers angry at supermarket prices

Games will more as likely go the same way as books: Supermarkets for mainstream stuff, Internet for non-main stream stuff, and the occasional high-street multiple (e.g. Waterstones/Game) for everything inbetween.

I appreciate it's tough for the independent high-street retailer, but honestly I don't see how the consumer loses out, which is one of their main arguments.

 

This technique is called "dumping": wealthy company A sells products at loss until company B is bankrupt. I can't believe it's still legal in some countries of the EU.

 

The only reason I go to GAME is for their 2 for £10/3 for £15 promotions on older games. New games are always bought from Play.

 

Tesco are not buying it any cheaper than Play, Game, Gamestation or Amazon, or any other larger retailer that gets the maximum "bulk" discount.

BUT.....they sell it as a "loss leader".........it gets people into the store or onto the website. If you are cynical, you may see it also, as part of a 'master plan' to put local high street game shops out of business (!).......although to do that they would have to sell them all at that price.

Play.com use similar tactics...they always have an "Offer of the Week", selling a (still) full--priced game at £10 or so......so Tesco are not the only business to use these "loss-leader" tactics.

 

Its not dumping since the end result is usually that with the small company out of the way the prices can then be hiked and the consumer looses out, Tesco is never going to put the internet out of the business. All the little game shops round my way are long dead under Game and i can't feel sorry for one large company getting a piece of there own medicine.

 

My local indie game retailer was put out of business when Game and Gamestation opened shops next door within 2 months of each other....! He carried on for 12 months and then closed down.

BUT.....at least Game and Gamestation have a second-hand market which is handier than internet sites. They will probably stay in business !

Daft thing is...they don't do their homework. When Dirt 2 came out, Game and Gamestation were selling the XBox 360 version for £45.......these shops are physically opposite each other on a narrow high street. HMV however.....100 yards down on the left, were selling it at £39.99.

Who do you reckon got my cash ?............???? !!!!!!

 

The point is that supermarkets have other products for sale, on which they can subsidise the sale of cheaper products.
A computer games store only sells computer stuff, and does not have anything sold in volume to compensate.

It kills the high street.
All you will have left is a Large Supermarket, and nothing else...

 

It is standard operational procedure for all UK supermarkets and the fact that it has gone unchecked is the principal reason they are where they are today. So they offer (say) fruit and veg at prices the local greengrocer can't possibly match, then sit back and wait for him to go out of business, before ratcheting prices back up.

It's sad that small retailers have been squeezed in this way, but I guess that's capitalism. Either let the big dog eat the little dog, or introduce artificial constraints on monopolistic practices.

 

And if the consumer thinks that this is a good thing then fine all we'll have left is what the consumer wants. If the consumer is willing to pay more for a boutique single product shop such as a butcher then there will be some enterprising chap willing to set up a butcher.

The reason why games stores don't work is that there is no market/appetite for paying more for a boutique service for a product that by definition is exactly the same whether you buy it from Tesco or LocalGameShop. We are all killing the boutique game store every time we buy from LargeChain or InternetGames.com do we care? I don't.

 

very unfortunate situation, but in britain that's the way it's going to work. the other side effect it has i guess is the possibility of non-AAA titles selling fewer copies and putting independent studios out of business as Tescos will only stock games that appeal to mass audiences. i sympathize but there's not much they can do.

 

I agree.....there's not really a concept such as "personal service / touch" when it comes to games ! (see below**)

Unfortunately, I too simply buy from the cheapest place. But, local shops do second-hand stuff...which will probably never happen in Tesco !

** n/b it is funny to ring Game up on a Sunday, like 'loads' of times, just to hear them read through the stoopid mantra on the phone......!
.......hehe...yes, I'm evil.....

 

the problem with capitalism is that when a company becomes really bug they can lean on politicians to pass various legislature to aid their company and restrict the legislature that would harm them (look into Obama's Proposed pollution tax and the way that was altered when it tried to get through the senate)

now i'm not anti capitilist as the companies provide jobs to us all i just fear that at one point we will reach the point where big companies can influence what we spend all ur money on (if we are not there already)

 

Shops are Greedy and its about time someone came along and showed them how much so, R.R.P. is a recommendation of sale price not the final price?

 

If all you want to buy is Fifa 2010 and Generic First Person Shooter 12, then you are right to welcome our new Supermarket overlords. However, next time you want to play something not released by one of the big boys, don't be surprised that there's nowhere to buy it from.

 

the problem with such a price difference is that smaller business will eventually close, because they have no way to do the same. This will affect the economy eventually, once that is only a few stores selling the prices are push back to normal and nobody else wins.
The company who produces and distribute the game should put a price that could be the minimum and maximum, that way nobody will be prejudiced.

 

I don't get it... are tesco just accepting really small margins, or are indy game retailers just annoyed they can't keep selling at their old high margins?

 

tesco and others are selling at a loss because the cheap product gets you in the store and the theory then is you'll buy other stuff while you're there.

all the supermarkets do it, they price down the stuff people really want and make up the difference on the stuff you pick up while you're there.

not just this industry actually - when i was young a small bus company set up in my city, good service and cheaper fares that the big boys - price battle commences, the big boys can afford to undercut the small guys, and eventually force them out of business. then the bus fares rocketed back up to above where they'd been so that the consumer could pay for the loss they'd made whilst snuffing out the competition. and they had their monopoly back

 

Again though if price is the only concern then yeah that's exactly what'll happen consumers get the product they deserve (to paraphrase).

A few years ago First tried to muscle in on the local bus company here by offering unrealistic fares, a few people moved from the local firm but not enough the service was less regular and had a lower range of destinations, after a few months First gave up with the dumping strategy and put there fares back up.

Moral of the story its not always just about price some times you can be more expensive but then you have to have an Unique Selling Point that isn't price.

 

What next? HMV asking Amazon.co.uk to stop being cheaper because it's just not fair ?? Boo Hoo.

 

to be honest id rather shop in a supermarket where i can get 'everything' under one roof and if i cant find something then i check the internet and as a last resort go to small independant stores as it is so much easier while im doing my weekly shop to pick up items altogether and its almost always cheaper in supermarkets than anywhere else. its also better for my bank balance