EB to stop stocking Xbox 360 in Australia?
Dublo7
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Registered User regular
EB Australia and Microsoft Australia feuding over defective 360s
The Xbox 360 isn't the most reliable console around and has caused many a gamer a problem - seeing those red rings is enough to make any gamer sad!
A post over on Kotaku AU is claiming that there is a standoff between Microsoft Australia and EB Games Australia. According to a transcript sent to the website, EB Australia has $10 million worth of defective Xbox 360's that Microsoft will not take back. EB are quite obviously frustrated by this and apparently they will no longer be stocking the Xbox 360, except for second-hand units.
"There have been threats of EB dropping the Xbox range all together," says the transcript. To recoup their losses, EB is said to be trying to repair the units and sell them second-hand. The transcript also goes on to state that EB is frustrated about losing $85 per console sold since Microsoft introduced the standard three year warranty, as EB is now unable to offer their own. The three year warranty was introduced in response to a lawsuit.
Kotaku contacted Microsoft for a comment, but were met with the following non-comment: "We're not going to comment on this." We checked out the EB website and no brand new Xbox 360's were available in our area.
http://palgn.com.au/article.php?id=10183&title=RUMOUR%3A+EB+Australia+and+Microsoft+Australia+feuding+over+defective+360%27s
Microsoft Refusing to Take $10 Million Worth of Defective 360s from EB Oz?
Update: Microsoft has responded to our request for a comment.
Over the weekend, a Kotaku AU reader sent through a chat log containing an enlightening conversation with "an associate of mine who holds a high position within the EB organisation". According to the log, Microsoft is refusing to take responsibility for its defective consoles, leaving it up to the games retailer to make the best of a crappy situation.
Obviously we're trying to verify the facts, but for now, there's no reason not to let you guys know of the potentially nasty relationship that may exist between EB Australia and Microsoft.
The transcript had the following preface:
An associate of mine who holds a high position within the EB organisation (Who wishes to remain incognito) has requested that I send in a paste [of] this chat log that details a stand-off between EB Australia and Microsoft regarding faulty XBoxes.
Mysterious, no?
It gets better, after the jump.
According to the transcript, EB Australia has $10 million worth of defective Xbox 360s gathering dust, as Microsoft is unwilling to take them back. As a result, EB is no longer stocking the 360, except as second-hand or pre-owned units. A search of the EB Games website for "xbox 360" confirms this.
"There have been threats of EB dropping the Xbox range all together," says the transcript.
To recoup its losses, EB is trying to repair the defective units and offer them as second-hand. However these units are often returned dead, the transcript states. It also mentions that EB lost $85 per console sold once Microsoft introduced the standard three-year warranty, as EB was unable to offer its own.
"Add to this the fact that price matching got really cutthroat during this past Xmas, they were selling far too many units under-cost and getting a bunch back defective, but Microsoft [refuses] to reimburse for," the transcript says.
"The whole 360 RRoD [has] been extremely costly to EB Australia."
"Feel free to believe me or not but go and ask a local EB if they have or when they'll be getting in 360 Premiums again and nobody will be able to give you a straight answer except along the lines of 'sold out' and 'don't know when they're coming back in'."
This morning I rang up three separate EB Games stores in and around the Sydney CBD, and all provided a variation of the words "out of stock". One mentioned that it was waiting for Microsoft to send through more.
If all this turns out to be true, it's a rather damning look at Microsoft's commitment to retail, not to mention the reliability of its own console. And a major chain like EB not stocking the Xbox 360, with the potential to pull down all related stock, is a huge deal.
Never fear - we'll be chasing this up with Microsoft to see what its side of the story is.
Update: Looks like EB still has the Premium listed. Sadly, this doesn't change the fact that the stores I contacted were out of stock.
I wonder if this will actually happen. I still have a valid ESA for my 360!
[SIGPIC][/SIGPIC]
Dublo7 on
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Shop at the Australian chains like Games Wizards.
EB Management should just admit they lucked out on the bullshit this time and continue selling those great disc replacement warranties we all love to buy.
Judging from your location, your opinion means fuck all.
well if it is anything like North American EB/Gamestops, Microsoft is no longer allowing them to sell the warranties.
Existing warranties will still be honored, but no more are being sold.
U R smert.
My how times have changed.
from an outside opinion id say its a storm in a teacup. how many 360s are sold in aus each year? how many specifically sold at EB?
Is this megaton news or just slow news day news?
Didn't Games Wizards turn into GAME?
Or am I mistaken?
Electronics Boutique used to be such a nice place to shop. Now I feel as if I sellout a little part of myself every time I go in.
Off to a great start Jeffy.
t my Commonwealth brothers: I hope to god this isn't true, but...
LOL, I like your sig. As for the news, O_o
And hate it or love it, EB is probably the most popular store over here where people buy their stuff. If they do limit their stock to 2nd hand units, I can see those units will red ring even sooner than they would if they got them out of the box new.
If EB is the "most popular store over" there, and they arn't stocking X360s, could this boost sales for PS3? (Wii is a freak of nature so they don't count)
PS I have no receipt or anything...bought the console on the Australian launch.
I like JB Hifi. They have a good music section.
(Only place I could find Wednesday 13 cd's goooo)
And the stores seem to be springing up everywhere these days.
heh i go into the north sydney shop a bit, i work around the corner
i hate shopping in eb but there's honestly not much else nearby. this is why this 360 thing could be a big deal - it's alright for a lot of us who live in the city and have access to jb-hifi etc, but i imagine a lot of smaller towns have an eb in the local shopping centre and _that's it_ - the only other place to grab a game would be target and its sterling collecion of overpriced crazy frog racer sequels. (i actually saw a lonely 40gb ps3 on sale at target for $1000 - obviously they hadn't bothered changing the price even despite the official drop of $300, half a hard drive and backwards compatibility)
so yeah, that would suck. plus with hugely diminished competition on 360 sales, we won't see places like jb with their great cheap bundles. they wouldn't need to.
I mean, Christmas was a month ago. Ship more over already! :x
It's not like you can get the console at every other retail chain anyway...... more often than not for cheaper or included in a better bundle.
It seems insane for a game store to decide not to carry one of the three major current generation consoles. Doesn't it push the idea of EB being a specialty store out of the public eye? If you can't even rely on a "game store" to carry this product, what purpose do they serve? I know this issue has been brought up before in regards to new games/ not pre-ordering but in the context of a console it seems pretty odd.
Also: has this story been verified?
They could "reconsider" their purchase (specially if it requries extra driving). Specially if their one the fence about it.
Microsoft had nothing to do with it, at least, not directly. Gamestop stopped selling the 360 warranties because it was no longer profitable. Selling a warranty for $60, but seeing a large number of them come back, drove profits on the warranty to nil, and thus the company decided to stop selling them.
https://steamcommunity.com/profiles/76561197970666737/
No, the warranties were a deal with a third party company. Gamestop sold the warranty, and would get a cut of the money. The rest would go to this third party (I don't remember their name, honestly), and that company would deal with the defective stock. I believe they generally sold the units once they were refurbished. However, in this case, the company was forced to take back enough 360s that it was no longer profitable, and refused to allow 360s to be part of the warranty program from that point on.
https://steamcommunity.com/profiles/76561197970666737/
I'm pretty sure the Wii sold the most consoles this christmas but the 360 sold more games than the PS3 and Wii combined. EB will not shoot themselves in the foot over this.
I only go to them as a last ditch option when I want to get a game now and no one else has it in stock or I want a look at their second hand stuff.
Satans..... hints.....
Were EB selling warrenties and then trying to get free replacements from MS?
So they took your money and if you ever needed to invoke your warrenty for a new console they would replace it then go to MS to try and get a free replacement on the unit you returned under a warrenty you paid for?
No wonder MS told them to fuck off... if that's the case, it's a blatent abuse of Microsofts return/replacement policy.
EB offered to warranty the product outside of Microsoft's return policy. You can't make promises for other companies and then get pissed that they'll have none of it.
I'm 22 btw.
Plus I usually pick up a CD or DVD at the same time as I get games so its just more convienent.
I think the last time I bought something from EBs was when they broke the street date for Mass Effect. That was a fucking great day.
猿も木から落ちる
If it is the former, then MS has at least an obligation to fix them under its new warranty policy. If it is the latter, then yes it is EB's problem for swapping consoles that MS would have otherwise only taken in for repair. It is not their fault that EB's breakdown insurance scheme came back to bite them on the arse. In fact, they should be taking this up with the insurance company - they're the one who are no longer honoring warranty policies that EB was selling on their behalf.
EB no longer stocking them means every mom & pop off the street buying a console would now be pushed towards either a ps3 or wii, obviously. EB has gone downhill over here though, like everyone says, and actual gamers tend to stay away when possible. They have a heap of stores though and i can only think this would be a good thing for Sony or Nintendo..
Bleh, whatever, this whole deal stinks and I can't really fathom how it has gone this far..
I have faith in MS sorting this out though..