Fight back against the bundles

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bookishboy

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This Autumn, two different major game consoles are going to get released. Most likely, the major online retailers (EBgames.com, Gamestop.com, Amazon, etc) will be offering them only as bundles. In order to purchase the new Sony or Nintendo systems *at all*, you'll also have to buy:

-An extra controller
-3 games, which you likely will also get to choose only as a bundle; you may want only 1, or only 2 of the 3 games that you get stuck with.

When you receive the bundle in mail, it won't be packaged as a bundle. It'll be the system, and the three games and whatever accessories just stuffed into a shipping carton. It won't be some sort of collector's edition, it won't be worth money in 10 years because you got the "Amazon Sports Platinum Bundle". It won't have been something that had to be sold as a bundle (because it was packaged that way), just something that they decided they were only going to sell as a group of individual items. If you check your inventory slip, I doubt it will even be billed all together; the receipt will show a complete purchase with a group of individual items.
EDIT/ADDED: When you check the price on the bundle, you won't find any discounts, at least not anything significant. The main reason why I would buy bundled systems would be if I saved money on it... "Buy a bundle, one of the three games will be free!" or "Free 2nd controller included!"

The retailers will do this because it improves their "attach rate". This is one of their business metrics, how many high-profit accessories, games or warrantee plans they can "attach" to each sale of a low-profit console.

They'll do it because it allows them greater flexibility in filling their orders, at the expense of their customers' choices. It's much easier to send out 1,000 bundles of "Wii + Zelda + Madden + Red Steel + extra controller($60.00! :shock: )" than to send out 1,000 individualized orders, with varying attach ratios and different combinations of games.

They'll do it because they can enforce greater control on their stock inventory, including making sure that crappy games get sold in high numbers to customers who wouldn't buy them otherwise.

They'll do this because it gives them leverage with game publishers, including being able to negotiate favorable prices/terms for product if they can guarantee that they'll sell X amount of the 2nd and 3rd-tier titles along with the truly good, sought-after titles.

Mostly, they'll do it because when the brick-and-mortar stores are running low on inventory, *you have no other choice* but to buy their bundles, on their terms.

Lots of folks are going to be buying these bundles this season. Many won't mind the extra price or reduced amount of choice in their purchases, because it will ensure that they have the newest system first, or make sure that there is a particular box under the Xmas tree for someone special to them.

For those of us (like me) who are frankly offended by the practice of bundling when a new console comes out, there's a way to strike back. Most of these online retailers have brick-and-morter divisions;
Amazon.com - ToysRUs EDIT: They're no longer affiliated, pointed out by eshbums
EBGames.com - EBGames
Gamestop.com - Gamestop

1. Go to one of the brick-and-mortar stores that is related to an online retailer who "bundles".... who offers to sell that new console *only* as part of a bundle, and not as a standalone product.

2. Get on the waiting/preorder list for the console of your choice.

3. If the games that you want become available before the console is released (sometimes happens days or weeks before), or if you don't get in on the first shipment of systems, *BUY YOUR GAMES FIRST*. Buy them one at a time. Buy them as single items. Don't combine multiple games onto the same purchase. Make multiple trips into the store if necessary, if you feel bad about holding up the line at the cash register, or go to multiple stores. Alternately (Preferably), buy them from a competitor who *does not* practice bundling, and buy them all-together if you want to reward them for not engaging in the practice.

4. When your system becomes available, go in and purchase it. *DO NOT* buy any games or accessories with it. Buy the system alone. If you're an extended-warrantee kind of person, go ahead and get that(because you won't be able to buy that later, separately), but otherwise buy only the system that you came in for. If the person behind the counter questions your purchase preference in any way ("Why no games? Don't you want to be able to use the system for anything?") Tell them straight out that you are trying to lower their company's "attach rate", for the deplorable practice of bundling in their online division. You're trying to bring down the attach rate to realistic levels because of all the people who didn't have a choice in their purchase, who were sold games/accessories that they didn't want, but who bought them anyway just in order to get the system that they did want.

5. Feel bad for the employees/manager of the particular store where you bought the games, if you're the sort to feel bad. Aside from hurting the company's attach rate, you're bringing down that store's individual numbers, and reducing the chances that the manager will get a sales bonus. Feel worse for the manager than for the part-timers though, because they get hardly anything as far as sales bonuses. I guarantee you that even if you do feel bad for the manager/employees, they don't feel nearly as bad for you, or for the thousands of other customers who get stuck buying a bundle from the online division, when that's all that's available.

6. If you were not previously able to get the games that you want, go and buy them now, in this order of preference:
-From a competitor store who *does not* engage in bundling(buy all at once)
-From a different brick-and-mortar store than you bought your system in (if this store also has an online division that "bundles", then buy the games all on separate receipts, which will also reduce their multiple-sales numbers)
-If there are no other stores within driving distance at all, from the same store where you bought your system.... also buy them on multiple receipts, one receipt for each item.


That's it.


Again, if you don't care about buying your new system in a bundle, and getting only one or maybe two games that you wanted while also having to purchase extra crap that you don't, then disregard all of this. Go on your merry way and enjoy your new toys. Every person who does this will be striking back in a small way, however, and more than you might think. Imagine how the averages will be effected, when thousands of people are buying bundles of systems with 3 games and 1 accessory, and then a few thousand show up and buy the system with 0 games and 0 accessories. If enough people force the issue, the situation might be changed by the time the next gen of consoles comes out.... just imagine being able to go online and purchase a PS4 when it's brand-new, and only buy the extra stuff that you actually want to go along with it.
 
Amazon is no longer TRU.

Your logic works backwards though. The reason bundles exist is because the markup on the system itself is zilch. Each retailer is only making a couple of bucks on each system.

They make the bundle because if there's a shortage, people will buy whatever you force them to buy. So, you throw in some games with better margins, some accessories with even better margins, and everyone comes away a winner. The store has better margins on each sale, and parents don't have to wander around a department they despise getting little Jimmy his Christmas present.

If you really wanted to make a difference, absolutely get people together and fight this practice, but don't buy ANYTHING. Call or stop by your local EB, and ask if they take preorders on the PS3. Ask them if you can put all the money down today. THEN, ask if you can just get the system. If they say they only have an 'action' bundle or 'sports' bundle, tell them no thanks.

Then call the same store later, and ask if they take preorders over the phone, repeat.

Then have your friends do the same thing. Maybe preorder a game from that store and say 'hey, you helped me last time, store XX got my preorder because they didn't force a bundle on me'.

Check your receipts, if there's a number to call about your experience, call them. Say that you wanted to preorder a $600 PS3, but they wouldn't let you. Eventually the marketing people will need to device some other plan to get the nice high margin items in your hands. Maybe even, shutter to think it, offer some incentive for buying everything at once. It's crazy talk I know, but if enough people bitch and make a point of telling EB/GS that they bought somewhere else, it might make a difference.
 
[quote name='eshbums']Amazon is no longer TRU.[/QUOTE]
Thanks for pointing this out. I didn't realize they'd parted ways.

[quote name='eshbums']Your logic works backwards though. The reason bundles exist is because the markup on the system itself is zilch. Each retailer is only making a couple of bucks on each system.

They make the bundle because if there's a shortage, people will buy whatever you force them to buy. So, you throw in some games with better margins, some accessories with even better margins, and everyone comes away a winner. The store has better margins on each sale, and parents don't have to wander around a department they despise getting little Jimmy his Christmas present.[/QUOTE]
The markup on each system is zilch; I already stated that they're low-profit. There are multiple reasons why the bundles exist, however, and I think I hit several of them on the head in the first post.

Sorry if this sounds like semantics, but the retailers don't "throw in" some games or high-margin accessories; they charge for them. The customer pays for them, usually at full price or with an insignificant discount. What's the worth of a bundle if I'm getting $5 off a $60 game, which I didn't want to begin with?

Everyone doesn't come away a winner. I don't feel like I "won" something that I paid for, and I feel less of a winner when I have to pay for 1-4 games/accessories that I don't want, in order to have the privilege of buying the console that I do want. ADDED:I also don't feel happy or well-served by the business who's received my money. I *could* refuse to buy the system, or wait until the system is available from them as a standalone (next year sometime, no doubt). I could also try to hunt down retailers who do not bundle, and buy only from them. My goal however, is to get my system (hopefully before Xmas), *and* to punish the guilty retailers for their practices, *and* to take away some of their motivation for selling the bundles in the first place. If enough people participated in a movement like this, the guilty businesses may decide that it is more profitable to deal honestly and directly with their customers, and not to try forcing unwanted extra purchases on them.

I will concede that these bundles are exedient for people with little time, with disposable cash and for early adopters who want their new system *NOW*, damn-the-price. Matter of fact, I already conceded this in the first post. I'll say it again; if you're OK with buying a bundle in order to get the system you want, more power to you. Buy them if you want, and enjoy your new systems. The people who are going to fight against this practice are the cash-strapped, the budget-minded. They're folks, like me, who already have a pile of games that were bought (they were on sale, dammit!)but are still sitting on the shelf waiting to be played. We're folks who are a bit more jaded and patient enough to wait out the holiday frenzy, if the systems run short of supply until next year.

[quote name='eshbums']If you really wanted to make a difference, absolutely get people together and fight this practice, but don't buy ANYTHING. Call or stop by your local EB, and ask if they take preorders on the PS3. Ask them if you can put all the money down today. THEN, ask if you can just get the system. If they say they only have an 'action' bundle or 'sports' bundle, tell them no thanks.

Then call the same store later, and ask if they take preorders over the phone, repeat.

Then have your friends do the same thing. Maybe preorder a game from that store and say 'hey, you helped me last time, store XX got my preorder because they didn't force a bundle on me'.

Check your receipts, if there's a number to call about your experience, call them. Say that you wanted to preorder a $600 PS3, but they wouldn't let you. Eventually the marketing people will need to device some other plan to get the nice high margin items in your hands. Maybe even, shutter to think it, offer some incentive for buying everything at once. It's crazy talk I know, but if enough people bitch and make a point of telling EB/GS that they bought somewhere else, it might make a difference.[/QUOTE]

I do like your idea of the call campaign, but I disagree that not buying ANYTHING will hurt them. Keep in mind:

-They're going to sell a hell of a lot of systems.
-I want one, if I can get one.
-If I buy nothing from them, then I have zero effect on their attach rate. I don't have a purchase that gets factored into their numbers. The initial run of both the Nintendo Revolutions and the Sony PS3's are going to get sold out no matter whether I buy one or not. They're both new, and both in-demand.
-The systems can't be bought as stand-alones from the online divisions; only from the retail outlets. So the people we're dealing with are store managers. They would rather that you or I buy NOTHING from their store, than come in and buy JUST a system. If we don't shop in their store, their numbers don't drop, and all those PS3's are going to sell regardless.

The call-in effort is a good idea, though, if it causes the online branches or retailers to waste their man-hours dealing with "customers" who express an interest in a product, get told that they can't have it in the configuration they want, and then buy NOTHING.
 
[quote name='Rusty Ghia']My, aren't we the optimist? Sorry, but people don't have the self-control.[/QUOTE]


Actually, I consider myself a realist, though my friends tell me this is a definite indicator that I'm a pessimist. ;)

I agree, many people won't have the self-control, but I do, and I'm tired of these ridiculous bundles, and I suspect that I'm not the only one.
 
You could also just not purchase the system, purchase it online from non-bundling retailers (overstock doesn't run bundles I think) or purchase it from a local independent dealer.
 
[quote name='furyk']You could also just not purchase the system, purchase it online from non-bundling retailers (overstock doesn't run bundles I think) or purchase it from a local independent dealer.[/QUOTE]

Yes, this is one option to go. For the person with the patience and desire to hurt those retailers that are bundling, however, I submit that it would be more effective to buy the (low-profit) system from the offending retailer, and purchase a bunch of (high-profit) games/accessories from the retailer that does not bundle.

The point is to punish the bad behavior, and reward the good. :)
 
This mini-boycott isn't going to help things. As long as there is a much higher proportionally demand than supply, you'll see retailers trying to make some money. Which isn't a bad thing. If all they sold was the consoles, they couldn't afford to pay employees or keep the lights on.

Hell, it's the whole reason Ninty is charging $250 instead of $200. Demand is high enough to sell through all four million.

I just won't buy a bundle that doesn't include what I don't want.
 
[quote name='daphatty']Too... Many... Words... Ugh...[/QUOTE]
Sorry about that. If you're a Cheapass like I am, it's worth the read. If it's too long, keep moving; it's not for you.

[quote name='Quillion']This mini-boycott isn't going to help things. As long as there is a much higher proportionally demand than supply, you'll see retailers trying to make some money. Which isn't a bad thing. If all they sold was the consoles, they couldn't afford to pay employees or keep the lights on.

Hell, it's the whole reason Ninty is charging $250 instead of $200. Demand is high enough to sell through all four million.

I just won't buy a bundle that doesn't include what I don't want.[/QUOTE]
It's not really a boycott, which involves a collective agreement not to patronize a particular business or to purchase/use a particular product. It's a way of targetting our buying activities in a way that punishes misbehaving companies and rewards the good ones.

The companies are of course trying to make some money... the trouble is, they're trying to do it by forcing unwanted merchandise on their customers as a prerequisite for being permitted to purchase a limited-supply item.

Also, If they weren't trying to force me to purchase unwanted merchandise, I would still be buying my console AND games there.... it might just be console + 1 game though. If it were console + 3 games, it would be the three games I most wanted to have. I'd also probably keep buying from them as a return customer.

If you're able to find a bundle that includes all merchandise that you want, and would have bought anyway, then you're well-served by it. Even more so if it saves you money (though I don't recall any system launches in recent memory that included discounts or free merchandise as part of the "bundles"). Go ahead and get it, and enjoy it. If you didn't want any of the components in it, or didn't want them "until next year, when I can afford it", then you're not being well-served.

I'm suprised that this idea is only getting mostly negative or "It wouldn't work" comments. This is a community of admitted cheap-asses, people who keep lists of games and wait until their coveted game goes on sale. People in here combine the power of community organization every day to share info on sales, bargains, price-mistakes, sly methods for returning and buying games. There are also consistant themes in here of being upset/angry with rude cashiers and managers. What better way to get back at that rude manager than by lowering his sales metrics, while at the same time campaigning for a higher cause: the end of bundles.
 
Far too much effort. I'll simply delay my purchase until a store offers it in the form I prefer. I'm not going to suffer for lack of owning a PS3 or Wii on the day of launch, the month of launch, or even the year of launch. I've got an immense backlog of older unplayed games acquired for very low prices.

I used to get nearly all machines at launch but I no longer can summon the enthusiasm. Just the same, I've never been forced into a bundle purchase. In the cases of the PS2, Xbox, Gamecube, and DS, I simply walked into my local TRU, pointed at the box and said "Gimme."

I'm content these days to wait until a decent amount of software is available for cheap. The Xbox 360 is close to my threshold for desirability on that basis. It could be a good while for the Wii and PS3 to get there.

If I go to the TRU on the Wii's launch day and they have machines in stock for sale, I may give in to temptation. But only if I can do it as a normal purchase. Any obstacles will cause me to simply walk away. After all, even if I owned no video game hardware already, I can get plenty of fun for cheap from platforms with no hassles attached.
 
Fight back...why? If the bundle has items you already plan to purchase (as it did when I got my 360, and I saved about $20), then you buy the bundle. If it doesn't have just what you want wait til the consoles retail shelves and just walk in and buy one that way with whatever you want. Like ebopirs just mentioned I don't think I've ever been forced to buy a bundle when shopping at a B&M store. If you don't want the bundle don't shop online, simple no? Your foolish strategy of not buying games and accesories with it is rediculous though, again if you want them buy it, if not don't, but I'm sure as well not going to bother driving around to different places trying to find the games or accesories I want when I buy a new system, especially not when I can just get them right there.
 
I'm going to go a different direction with this..

Please feel free to buy the bundles. Us cheapasses need the sucker consumer to fund the gaming industry, and keep second-hand games circulating.

+1 for patience.
 
[quote name='bookishboy']Sorry about that. If you're a Cheapass like I am, it's worth the read. If it's too long, keep moving; it's not for you.[/QUOTE]

I am a cheapass. But I think your words go without saying. Any respectable cheapass will agree that these bundles serve no one except the interests of the commercial entities that sell them...
 
[quote name='daphatty']I am a cheapass. But I think your words go without saying. Any respectable cheapass will agree that these bundles serve no one except the interests of the commercial entities that sell them...[/quote]

Exactly. One problem with some places that sell the bundles is that they don't allow you to return later on the game(s) or accessory(ies) that you don't want. You can take them to GS/EB and trade them in, but you won't get what you paid. To me it seems that the ones that are for the bundles miss the entire point of why they are bad for the consumer
 
Thats a lot of stuff to read, cant believe I actually read it. Cant you just go to Gamestop or something and buy your console there? Problem Solved :)
 
I think you missed the point Riyonuk,

Yes, you can go to Gamestop. The OP is suggesting you go to Gamestop to get it, and only buy the console with no games. Then, if you want games, come back and buy them later, but only one at a time. This lowers the attach rate, which Gamestop.com is artificially boosting up with the bundles.

Honestly here, if Gamestop.com cared about their customers (I know lol), couldn't they just require you to buy another $100 worth of stuff, your choice. Odds are, you are going to anyway, so this wouldn't hurt you, and the attach rate would be saved. But, as OP said, you can't promise distributors you'll sell their crap games without requiring someone to buy them.

Also, the problem with bundles, I've known a few people to buy them. I've yet to find a person who wanted everything in the bundle. That's a problem. There aren't "good" bundles. Rarely, are the 3 games bundled even close to each other. So, to like one game, your almost guaranteed to have no interest in the other game (the only thing worse would be if they bundled the new Metal Gear game with Seseme Street learn to count or something like that).
 
[quote name='lordxixor101']I think you missed the point Riyonuk,

Yes, you can go to Gamestop. The OP is suggesting you go to Gamestop to get it, and only buy the console with no games. Then, if you want games, come back and buy them later, but only one at a time. This lowers the attach rate, which Gamestop.com is artificially boosting up with the bundles.

Honestly here, if Gamestop.com cared about their customers (I know lol), couldn't they just require you to buy another $100 worth of stuff, your choice. Odds are, you are going to anyway, so this wouldn't hurt you, and the attach rate would be saved. But, as OP said, you can't promise distributors you'll sell their crap games without requiring someone to buy them.

Also, the problem with bundles, I've known a few people to buy them. I've yet to find a person who wanted everything in the bundle. That's a problem. There aren't "good" bundles. Rarely, are the 3 games bundled even close to each other. So, to like one game, your almost guaranteed to have no interest in the other game (the only thing worse would be if they bundled the new Metal Gear game with Seseme Street learn to count or something like that).[/QUOTE]

Some places do let you chose the bundle, they are the minority, but do exist (I've seen several import sites that do this). Again the proposed idea of lowering the attach rate by leaving and then returning or going to another store is rediculous. Let me ask you something, do you think the majority of consoles sold at launch are through bundles or not? If you said bundles you are wrong. The majority of sales at system launches go through places like Target, Walmart, CC, Best Buy, etc. where they don't require bundles for the most part (if ever), not EBGames and Gamestop. Same goes for the games too.

Let's take a look at the 360 launch, what was the game with the highest attach rate? Answer is CoD 2 with 77%. Now out of the bundles offered by EBGames online how many of those included CoD 2? The answer to this is 1, the most expensive package only. Now I don't have their preorder numbers per bundle anywhere, but I'm guessing the majority of preordered consoles wasn't the $1300 bundle, and even if it was they shipped out probably around 400 or 500 (if that) TOTAL bundles of the actual launch week. Now, I don't have the raw data (maybe someone else knows) but I'm guessing at least about 100,000 to 150,000 consoles in total sold in that last week of november. So if CoD 2 was in the minority of bundles offered, and if the position that attach rates are so boosted by bundles like you, the OP, and others suggest is true, but the bundles as a group made up only a very small fraction of total consoles sold. Then how did CoD 2 get the highest attach rate at 77% if it was sold in so few bundles??

I could've made things easier for myself by saying that the attach rate for games on 360 console sales has gone up since launch (from 3.9 up to 4.6), but with the number of bundles being both sold and offered has dropped since then. So yeah bundles mean everything when it comes to attach rates... So, now you see my reasons for that theory holding no water, and when I go out to by the Wii, the only way I'm not picking up Zelda in the same store on the day at the same time is if they run out before they run of consoles, which I doubt will happen (if some store manages to do that I'll be pretty amazed). To me it seems attach rates are largely unaffected by bundling like EB and GS do.

No one if forced to buy these either, you have a choice. Whether you preorder online or in a store you're going to get it at the same time, they don't break street dates because you buy a bundle. Like I said earlier if the bundle contains just what you're going to buy then pull trigger, if not don't. Simple, though granted there are many people that make poor consumer decisions and buy a bundle only to try and sell what they don't want, but that's their piss poor decision. Also for the record I love the only bundles I've ever bought, my 360 came with an extra controller and play and charge kit for $450 (saving $20), bought the LE Green Xbox Halo bundle, and the other is GC plus Zelda Collector's edition promo from a while ago.


[quote name='HumanSnatcher']Exactly. One problem with some places that sell the bundles is that they don't allow you to return later on the game(s) or accessory(ies) that you don't want. You can take them to GS/EB and trade them in, but you won't get what you paid. To me it seems that the ones that are for the bundles miss the entire point of why they are bad for the consumer[/QUOTE]

I don't think anyone if fighting for the sale of bundles. That has nothing to with what I'm saying really, I only buy bundles unless it's an actual deal of some kind or is a LE I'd like to have (and don't own the console). What I'm advocating is that the OP's "system for fighting the bundles" is absurd and too much effort for something that will change nothing. I've explained my disagreement with the attach rate argument and some of the other things he/she suggested will get you nowhere fast.

Buying the games on separate reciepts? The store doesn't care, they get the money either way, besides the mark up games and consoles is so low that isn't what most places will care about. They focus much more on things like extened warranties or failing that accesory sales because it makes them money. Why do you think they throw random accessories into the bundles anyways? They don't care so much about the games believe me. They may ask once or even twice, but think about have you had a salesperson push buying games on you like they do somehting like warranties or accesories?

I guess I just find most everything suggested to be nothing but a large waste of time and effort for the consumer. No offense to bookish, but what you've proposed just doesn't gel with me I guess. I say don't buy the bundles because they usually aren't good (if you really want everything in it then fine), but I do say everyone should feel free to buy things how and where they want, because it won't have much affect on places like EB and GS stopping bundles. Ironically in all my ranting here I do think you hit the nail on the head bookish, when you said it's the best way to control their inventory, but they'll try to do always in some fashion that regardless of what the customer does, I believe.
 
Jesus fucking christ.

It's like this thread threw up upon itself multiple times.

Bundles are ghey marketing schemes. GS's supposed $50 trade-in credit is a ghey marketing scheme. Businesses do shit to help their bottomline normally at the expense of their customers who don't know any better.

That's about all you need to know.
 
I dont' understand why retailers don't just charge more for the system. Especially when they know it is going to sell out. It doesn't make any sense.
 
[quote name='hufferstl']I dont' understand why retailers don't just charge more for the system. Especially when they know it is going to sell out. It doesn't make any sense.[/QUOTE]

Ok now I be knowin' you aint been missin' tha bitchin' about console prices of the last year.
 
[quote name='hufferstl']I dont' understand why retailers don't just charge more for the system. Especially when they know it is going to sell out. It doesn't make any sense.[/quote]

Their agreements with the manufacturers preclude them from charging more than MSRP, I believe.

I don't like bundles any more than you do, OP. Generally they do not represent significant savings (although there are exceptions). I feel that the manufacturer should decide what is included with the system, not the retailer. What I don't understand is why you would try to artificially lower the attach rate of a store that does not force bundling. Generally, a corporation will treat their online component as a separate entity from their brick and mortar stores. If the online component forces a bundle, but the B&M does not, then buying from the B&M makes sense. But, let us assume that everyone takes your advice and buys only a console from the B&Ms. When the company compares the attach rate of the online store versus the B&Ms, they will see that they were right to do the bundling in the first place, and are far more likely to start forcing bundles in the stores as well. It makes a lot more sense to purchase the items that you know you want along with the console, so that they might realize that they don't need to create these bundles in order to have a decent attach rate. Of course, that won't really affect us for another 5 years, or more, when the next next-gen consoles are released.
 
I'll say what I said when people complained about the 360 bundles at launch.

100% of stores that are/will be bundling things with the PS3 or Wii, check your receipt. If nothing is being marketed down, and no real "sale" is going on, just take the crap you don't want and return it to customer service.

Simple as that, they can't refuse a return on items that were not marked down and not part of an actual sale.

I bought one of those pre-sale 360 bundles TRU was selling. No one wanted to buy them because of the bundle and because of the games in the bundle. So I bought one knowing I wouldn't have the time to wait in countless lines. Come launch day, I bought it all, walked to customer service, got a return on the 2/3 games I didn't want, and bought 2 other games I did want in the store for my 360.
 
Yeah, but this is a site called Cheapassgamer, remember.

My point is that if the consoles are shipping at such a shortage(and many of those make it onto ebay anyway), why wouldn't the stores just sell them for a few bucks more? Especially if the MSRP isn't much more than their cost.


[quote name='Strell']Ok now I be knowin' you aint been missin' tha bitchin' about console prices of the last year.[/QUOTE]
 
[quote name='hufferstl']Yeah, but this is a site called Cheapassgamer, remember.[/QUOTE]

Not to sound like a dick but paying $600 for a gaming system is far from being a Cheapassgamer. The bundles do suck, but wouldn't you be buying 2+ games for it anyway?

Gah, I have a feeling this is going to turn into the whole price bitchin' thing Strell is talking about.
 
$600 is now the price of admission to the Sony party. You can always rent games, join a netflix-like club or buy games used once you have the system. Most cheapass deals have to do with the games anyway, not the systems.

My point is that instead of bundles, retailers could just sell the system for $40 more the first month or until supply meets demand. Ebay(and ebayers) make a killing everytime a system comes out, but retailers are expected to sell a system with little-to-no profit?
 
[quote name='hufferstl']$600 is now the price of admission to the Sony party. You can always rent games, join a netflix-like club or buy games used once you have the system. Most cheapass deals have to do with the games anyway, not the systems.

My point is that instead of bundles, retailers could just sell the system for $40 more the first month or until supply meets demand. Ebay(and ebayers) make a killing everytime a system comes out, but retailers are expected to sell a system with little-to-no profit?[/QUOTE]

In theory it sounds okay, but like guessed mentioned above, agreements with companies often force retailers to sell them at or very close to the MSRP. The console manufactuers typically lose money on systems they sell to retailers so they dislike it when the retailer takes a system they bought for $350 and sells it for $$600. Ebay is a second hand market that can't be controlled like that. So basically yes, they are forced to sell it on a thin profit margin. Besides, this practice would no doubt led to price fixing eventually in some form which is probably real bad for the consumer. Also, the retailers usually have no clue when the supply will meet the demand when it comes to console shortages. Trust me the companies tell the retailers very little (their only connection is typically through a rep, which I've learned from experience that they typically know less than I do).
 
[quote name='hufferstl']
My point is that instead of bundles, retailers could just sell the system for $40 more the first month or until supply meets demand. Ebay(and ebayers) make a killing everytime a system comes out, but retailers are expected to sell a system with little-to-no profit?[/QUOTE]

Retailers would have to mark up the systems more than $40 to make a killing per unit. As others have mentioned retailers make close to nothing per system, and they make their money on things that are attached to the system. Most stores try to keep their (UPT-Units Per Transaction) high, since they bank on accessories being attached to the system and keeping their customer purchase average high.

Marking up the price until supply meets demand sounds great in theory. What proof is there that marking up an item a said amount will discourage people from buying it? If someone is already ready to drop $600+ on a gaming system, $40 dollars or any amount short of a couple hundred more dollars is not going to deter them. Guitar Hero for a long while, sold for $79.99 at all EB's and Gamestop's, $10 more than retail (hardly a jump over MSRP), but it still sold strongly, selling out everywhere.

Also if an Ebay-er knows he/she will get double or triple the amount they paid for the system, why would a small to medium mark up slow down their want to get one to sell?

The theory sounds great and all, but in the end if someone really wants something, they'll get it, regardless of what is thrown in a bundle or how much more you charge for it, especially if it's a new gaming system.
 
Yes, but there is a demand curve, less people will want them at $40 higher, and even less will want them at $100 higher. Anything to keep the ebayers guessing as to if it is worth their time or not.

If retailers have agreements with manufacturers, then I understand. But I have worked in retail in the past and know that its the bottom line, not the top line that really matters (although the top line is all that most people seem to care about).
 
Honestly, raising prices is probably the answer. The fact that people on ebay are willing to pay a bunch more (and there are rarely any in store) really show that the systems are underpriced, then lower the price once the number of units catch up.

That's why the PS3 will sell out anyway, with no issues. Only question is, a year down the road, will it sell.
 
Aren't bundled sales illegal in a lot of states? Call your Attorney General's office, the consumer protection division, and ask them about this.
 
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