Some Retailers Not Happy With EA's "Project Ten Dollar"

EA's "Project Ten Dollar" (or, as it should be known, "Project $US15 dollar") seems like a good idea to combat the retail industry's reliance on used game sales. But some retailers have pointed out not all beneficial to the publisher.

"EA's Project Ten Dollar move is aiming to stifle pre-owned games sales, but what they don't factor in is the damage this could have for them in relation to new sales," SwapGame CEO Marc Day told GamesIndustry.biz.

"At SwapGame, the majority of customers who trade in for cash or credit do so to acquire new games they could otherwise not afford. Through trading in, we aim to help the customer make gaming more affordable, providing them with a way to buy new games."

Man has a point. As does Chipsworld's Don McCabe. "You've got to bear in mind that when you sell this product, if they insist on online registration, what they're doing is collecting your customer data."

"On one hand they might be trying to reduce pre-owned sales, on the other hand they might be collecting data so they can email that customer directly."

"From a retailer's point of view, you're always going to have that in mind. Why should you give your customers over to an organisation that's going to compete with you? You're going to be less likely to want to promote that game."

The first point, it's a great one. The second one... between TV, the internet and magazines, how much promotion are game stores responsible for when it comes to a game published by EA? It's not like Mass Effect 2 was sold by people wandering aimlessly into a game store and saying, "I'm in the market for a conversation-driven space opera with a Syd Mead aesthetic..."

'Project Ten Dollar' will alienate consumers, warns retail [GI.biz]


Comments

    Aww poor second hand retailers, however will they scam high profit sales by undercutting retail copies by $5-10 and pocketing the difference whilst not supporting the industry now?

    I'm overflowing with sympathy...

    Really...

    @Aliasalpha

    Dude you really have no idea do you? With paper thin margins on games and consoles how do you think video game stores stay in business? Does the magical EA fairy come along and go - thanks for selling our game, have some money - no. You can go on like a wahmbulance all you like about making a profit but you forget that its a business - their sole aim is to MAKE PROFIT and not so they can rip you off, so they can CONTINUE TO EXIST. I have no affiliation with any video game stores or anything, I'm just trying to show you how it is...

    @acid9
    and fair enough your point is well, a point.
    But we, as consumers, still feel we are being greatly ripped off.

    Offering us $20 to sell the game for $99 pre-owned is by no means helping us save. It's helping the person that receives the $20 spend an extra $80 to buy a brand new game when that person could buy it for $80 brand new from a retailer like JB or even Kmart or Big W.

    I understand both sides - but their should be minimum difference between pre-owned and brand new. I've even seen pre-owned the same price even more expensive than brand new copies at places like EB - well mainly EB.

    EB don't offer more to some guy cause their isn't one crease in his manual. Everyone is offered the same 99% of the time - yes they do it to make a profit, but we are still being ripped off and thats all that matters to us.

      Jay indeed. I saw a copy of Mass Effect 2 the other week at EB for 84.95 2nd hand. I had to laugh as I had seen it at Target Brand NEW for 79.95... seriously. I mean, if they buy it off you for 20 bucks, why can they not sell it for 60 dollars? That's still a what, 200% profit roughly? Still room for massive profit, still a saving to you the consumer and still giving you room to pay for the 'cerberus network'... it's just plain *GREED*

      So I'm sorry. No. I have no sympathy for them.

      And yes, I DID used to work in the gaming industry, and I did used to buy the 2nd hand games from the general public, I'm well aware of what you pay but I'm also well aware of the profit margin on them. I'm also well aware that there's no need for such a *massive* profit margin.

        Don't forget that they were offering a trade back deal on Mass Effect 2, which was as high as $85. Not to forget the added credit with the Edge+ Card, and that would be $97.75

        Someone buys the game for $84.95, with Edge Card gets it for $76.45

        A loss of over $21. I don't see your profit margin, at least in this case.

    i am amazed people actually shop at EB games (aside from the mum's and dad's who know no better). new or used, EB games is more expensive than anyone else. when you can buy new from somewhere else cheaper than EB games used price you ARE definately being ripped off.

    of course they are going to get annoyed at this, their free ride is being threatened.

      Depends on the situation, I've recently moved away from them as my first choice retailer, but it depends on the relationship you have with the people there.

      I've been with my current job for 5 years, so in that time I've gotten to know those that work within my local store and most of which knew me by first name if I was too walk in there. Always asked/got the price match on the cheapest store, so for me I wasn't actually losing out by shopping at EB.

      Got the benefit of the 7 Day return in the event that something wasn't too my liking as well, something which is harder to deal with at JB, Target, Kmart, etc...

      Those I knew all left the store and moved onto something better, as they weren't always happy working there. But I have no time for those that work there now, they are extremely arrogant and at one stage even the manager was the centre of an issue I had about not getting a receipt from a purchase from them.

      Anyway, buying from GAME now, but in the event that a store does get an exclusive (EB - BioShock 2, God of War III) i'll still go back for those 1 off special editions, etc...

        That 7 day returns policy is going to be impacted by this kind of DLC.

        If you buy a game, use the included DLC code and then return it for a refund, you aren't returning the entire game: if they then sell the game on to another customer, that customer will complain about the code.

          That's already an issue now with games that come with a code for some DLC. E.g. Rock Band ACDC which came with the code which allowed you to import the songs into the "main" Rock Band game, and I believe Heavy Rain (maybe just the special edition?) includes a code for some free DLC.

          I wouldn't buy either of those games from EB, for the very reason that I've got no guarantee I'm actually getting a new game (and code), as opposed to one that's been returned under their 7 day policy after having had the code used.

      I am not a Mum or a Dad who knows no better and I almost exclusively shop at EB. They price match and they give a 7 day return policy if I don't like the game.

      If you're a smart shopper, you can still shop at EB and get the lowest price in the market with the added advantage of being able to return the game.

    You guys make a good point - obviously they need to make a profit but that kind of profit is a bit much. I like to shop at GAME because they do the 7 day returns AND price match or occasionally BEAT a price AND beat any trade value - its pretty much the best deal you're going to get as a customer. I mean sure they're still making a profit off you but at least you're getting the best possible deal you can to save you money. I agree with you though that a games trade value goes down way too quick while the price they sell it for takes forever to go down.

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