So Asda Wall*Mart are entering the pre-owned games market

#1 Posted by JerichoBlyth (1044 posts) - 2 years, 7 months ago

Before I begin, it's probably best if I fill you in on a few things, since a strong majority of you do not come from the UK.
 
Asda is a UK-Based Supermarket, which was bought over by American Supermarket tycoons Wall*Mart over 9000 years ago (ok, around 8 years back). Ever since this merger took place, Asda has basically become very Americanised over the years and it has been dipping into nearly every market it can get it's greedy paws on (clothing, petrol, pharmacies, opticians, travel, car insurance etc) but its latest venture, has caught my attention as both an employee and a gamer.
 
I don't think I made that clear actually lol 
 
I work behind the Entertainment desk at Asda selling music, games and dvd/blu-ray's....now that that is established, I shall continue.
 
Onto the topic at hand! Asda have just recently announced in-house that as of 28th September, Asda will be offering a trade-in service similar to what shops like Gamestation (or Gamestop for you Americans) have been offering for years. The chance to trade in older videogames towards the cost of new titles. This did not bother me at first because it's a known fact that HMV (a entertainment specialist retailer in the UK with hundreds of stores nationwide) attempted to dive into the pre-owned gaming market and failed miserably. In fact, I was hoping that their loss of profits would have turned Asda off in regards to entering the market altogether. 
 
However, when I decided to read into the entire statement - it quite clearly states that they have new contacts and employers on-board to ensure success in this market, who actually have previous experience with other stores with boastful success stories. I then read into their first 'shock the market' deal, which had me interested to say the least.
 
October 1st see's the release of the most anticiapated sports title of the year - Fifa 11. To celebrate the release and the new trade-in scheme Asda provides, Asda will be offering customers a chance to purchase Fifa 11 for 3 STERLING POUNDS if they trade in Halo Reach on the day of release.
 
Now, I know for a fact that a lot of people will take this offer by the horns - because even I am sick of Halo Reach by this point and I have only had it for a week. I beat Legendary solo and realised that the multiplayer wasn't all that different and gave up on it upon achieving the rank of Warrant Officer Grade 1...that's just my opinion though, I found it boring - not to say it is for others. But I know a lot of people feel the same way, as I have spoken to a lot of gamers in the last few nights, who would quite happily give up their copy of Halo Reach for a cheap copy of Fifa 11. If they were to do the same thing in a store like Gamestation - they would only recieve £25/27 off of the £45 asking price of Fifa 11 in their store - so you have to admit, it's bloody tempting!
 
My major concern is that third-party independant stores are going to suffer from a Supermarket entering the market. Asda have the money to take profitable risks in the market to ensure the postitive reception of the public, where as local stores will struggle to compete with that, as they have to make ends meet and numbers have got to be crunched accordingly. There is one store in Scotland for example, who I have been trading games with since they were founded back in 1998 called Games Centre and they have grown to become a chain of stores through the pre-owned gaming community....but now that the people I work for are getting involved in the race for consumer's hard-earned money (and games lol) - I feel slightly guilty, as I might be part of something that will eventually put them out of business before too long. For example, there used to be three trade-in stores in my small town but one had to go as of last year because of the competition from the two other stores in town....now that a supermarket is getting into the market - who knows what will happen.
 
Thoughts anybody?

#2 Posted by xMP44x (2188 posts) - 2 years, 7 months ago

Seems like a very neat idea! I think Tesco is moving into the same market for pre-owned titles, and this could definitely make things interesting in the pre-owned games market. At the same time though it also means that some smaller companies and retailers will be choked of customers, which could spell their closure. As you said though, HMV failed when they attempted to delve into this market as well, so even massive retail giants might just have a problem.

#3 Posted by JerichoBlyth (1044 posts) - 2 years, 7 months ago
@xMP44x said:
" Seems like a very neat idea! I think Tesco is moving into the same market for pre-owned titles, and this could definitely make things interesting in the pre-owned games market. At the same time though it also means that some smaller companies and retailers will be choked of customers, which could spell their closure. As you said though, HMV failed when they attempted to delve into this market as well, so even massive retail giants might just have a problem. "
HMV didn't go about it the right way though in my eyes.
 
They failed to be competitive quite simply. They took the same amount off of a game when you traded a title in but it didn't help that the title you were wishing to half-purchase or trade for was worth it's full RRP asking price.
#4 Posted by Ramone (2433 posts) - 2 years, 7 months ago

It's great for consumers but it hurts the rest of the industry which is unfortunate. Also since you've got an inside line on the inner workings of asda you don't know if they will be selling Fifa 11 for £25 like last year do you?

#5 Posted by MattyFTM (13813 posts) - 2 years, 7 months ago

I'm pretty sure my local Sainsburries (which I've only ever visited once when the local Asda was being refurbished) does used games, but I think they have a deal with blockbuster or another company to do their entertainment section, and I don't think it's the norm in the average Sainsburries store. It's hardly surprising that more and more people are trying to take a slice of the preowned gaming pie. It's a big market, and has high profit margins.

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#6 Posted by JerichoBlyth (1044 posts) - 2 years, 7 months ago
@Jonny7892 said:
" It's great for consumers but it hurts the rest of the industry which is unfortunate. Also since you've got an inside line on the inner workings of asda you don't know if they will be selling Fifa 11 for £25 like last year do you? "
That was brilliant when they did that last year but sadly...no, I do not think they are lol
 
I think their main drive is to get people to trade in Halo Reach this year, so they can make money off of pre-owned copies of that near Christmas. It would be a nice stocking filler afterall.
 
I thought at first that this was only going to be taking place in a handful of stores but it turns out that it will be happening in every store with an entertainment desk available...yowza.
#7 Posted by Sir_Loin_of_Beef (54 posts) - 2 years, 7 months ago

It simply means that Alan won't have to walk all the way to the local games store to trade in his games anymore, after only playing them for one week.

#8 Posted by JerichoBlyth (1044 posts) - 2 years, 7 months ago
@Sir_Loin_of_Beef said:
" It simply means that Alan won't have to walk all the way to the local games store to trade in his games anymore, after only playing them for one week. "
Shut it you.........I get discount too btw lol
#9 Posted by Sir_Loin_of_Beef (54 posts) - 2 years, 7 months ago

But you're notorious for it, it's like "Err hey Mike i've just started playing this really awesome game, if you buy it then we can play it together" (a few days later) "Yo Alan I got that game just like you suggested!" (pause in conversation) "Oh sorry Mike i've already played it with a few other friends and i'm going to trade it in tomorrow... oh and BTW Mike the game was shit... huh? you bought it already? unlucky for you dude..."

#10 Posted by OutOfBounds9000 (2300 posts) - 2 years, 7 months ago

 
Really?Well i shop at Asda all the time.

#11 Posted by MysteriousBob (6201 posts) - 2 years, 7 months ago

More used games shops? I'm happy with that.

#12 Posted by iam3green (14380 posts) - 2 years, 7 months ago

cool i guess. i have heard that walmart was doing something like that in america. i don't think they have gotten into it yet. maybe it will be good, they have better deals on used games and trade ins compared to gamestop. i don't trade in my games or buy used games, unless they are really cheap.

#13 Posted by LiquidPrince (14656 posts) - 2 years, 7 months ago

Calm you summarize. I sort of stopped reading after paragraph 3.

#14 Posted by JerichoBlyth (1044 posts) - 2 years, 7 months ago
@Sir_Loin_of_Beef said:
" But you're notorious for it, it's like "Err hey Mike i've just started playing this really awesome game, if you buy it then we can play it together" (a few days later) "Yo Alan I got that game just like you suggested!" (pause in conversation) "Oh sorry Mike i've already played it with a few other friends and i'm going to trade it in tomorrow... oh and BTW Mike the game was shit... huh? you bought it already? unlucky for you dude..." "
We shall discuss this in bed my friend.
#15 Posted by ch13696 (4582 posts) - 2 years, 7 months ago

It won't work. I hear about Wal-mart and Best Buy getting into the used game market and starting up the service, but I never see it happen. Another reason being that Game stores can take the risk of offering deals all the time because they have the merchandise to back it up. While the big stores like Wal-mart just won't take that risk. Basically your store will probably offer that deal once and then back out on any other deal.

#16 Posted by Sir_Loin_of_Beef (54 posts) - 2 years, 7 months ago

What I wunna know is - Who the fuck at ASDA is in charge of givng you the best deal for your trade-in? The guy who sells you DVDs and swares by almighty god that "this game is good" ????     
 
 
(o_0)?

#17 Posted by Sir_Loin_of_Beef (54 posts) - 2 years, 7 months ago

Now let me put it like this - How many people here are 100% confident that they can go into their local supermarket, walk up to the videogames/DVD counter and get a decent deal for the game they want to hand over?
 
Thats like getting medical advice from the bar tender at your local pub ffs.

#18 Posted by JerichoBlyth (1044 posts) - 2 years, 7 months ago

To be honest - all the merchant has to do at the Asda desk is scan the game in question being traded in and quote a price depending on the condition of case/cd/manual. Any dumbass could do it.
 
I have to say though - I believe Asda will hit the nail on the head with this, unlike HMV because of how competitive they are willing to be to get a one-up over their opponents. HMV just failed to realise that they should be reducing the price of their games a few months after release, instead of keeping them at RRP outside of holiday seasons.

#19 Posted by Sir_Loin_of_Beef (54 posts) - 2 years, 7 months ago

I can't wait  xD

#20 Posted by Innovacious (208 posts) - 2 years, 7 months ago

Theres already a gamestation and two non-franchise/chain gaming stores in my town that buy pre-owned games (one that has pretty much nothing but pre-owned games). There is already enough competition between them. And i doubt some no-nothing in asda will let you haggle prices like the dudes in the gaming shops will (ive managed to get them to lower prices for me on NEW games before). It wont work here atleast.

#21 Posted by WickedFather (1450 posts) - 2 years, 7 months ago

2nd hand prices in Asda aren't that bad, either.  Army of Two £5, Assassin's Creed £8.  You know, enough to entice.

#22 Posted by JerichoBlyth (1044 posts) - 2 years, 7 months ago
@innovacious said:
" Theres already a gamestation and two non-franchise/chain gaming stores in my town that buy pre-owned games (one that has pretty much nothing but pre-owned games). There is already enough competition between them. And i doubt some no-nothing in asda will let you haggle prices like the dudes in the gaming shops will (ive managed to get them to lower prices for me on NEW games before). It wont work here atleast. "
Haggling is a dying art. Trust me - if I need to pay anything extra towards a trade, I will find every reason not to lol
 
Asda has a price-promise as well, so in short - they're going to completely own the market in less than 5 years at least. The only thing I will miss is the community that was attached to local, independant gaming stores. I'm just seeing the writing on the wall, tis all.
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