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ASDA and Tesco enter pre-owned market

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ASDA and Tesco enter pre-owned market

Two of the UK’s largest retailers test the water in second hand games sector

MCV can reveal that both Asda and Tesco have begun selling pre-owned video games in some of their UK stores.

Asda is currently trialling the scheme in its Leeds Living store at Crown Point. It is believed that the offer began on Monday.

It has also emerged that late last year Tesco begun trialling pre-owned games in its Basildon Pitsea store, MCV understands that the trial may since have been rolled out into other outlets.

Both are selling second hand titles and allowing customers to trade in their games.

Asda first signalled its intention to target the pre-owned games market in July of last year. Tesco has never voiced its aspirations top enter the sector.

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The pair become the latest in a long-line of non-specialist retailers to enter the second hand market, following the likes of HMV and Woolworths in the UK. US retailers Wal-Mart and Toys R Us – as well as online giant Amazon – have also done the same in the US.

Pre-owned sales have long been hailed as a cornerstone of specialist games retail and remain one of the key differentiators between dedicated games retailers and generalists.

The sector has always proved controversial – particularly with publishers who see pre-owned sales as a direct attack on their profit margins.

In recent weeks both EA and Sony have announced plans that reward those who buy new games with additional DLC. However, anyone picking up the same titles second hand must pay a premium to access the same content.

Wow

posted by Redh3lix Feb 24, 2010 at 4:18 pm
1

All these publishers trying to dull the second-hand games market and now this.

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lol

posted by paul johnson Feb 24, 2010 at 4:19 pm
2
paul johnson

wow try to stay calm jb, but looks like supermarkets are turning into indies !! ha ha ha ha ha, that means we can get rid of all our scratched games, load of faulty games etc etc, this week just gets better and better ! and then we can get our new games even cheaper ! wow thanks tesco every little really does help !

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second hand expands

posted by Rupert Cheswright Feb 24, 2010 at 4:20 pm
3
Rupert Cheswright

Very interested to see how this develops and the affect it has on the wider market place.
Looks like another kick in the nuts to the idie's though.

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a new idea?

posted by ohiyeah Feb 24, 2010 at 4:41 pm
4
ohiyeah

let's be honest, eBay had this sewn-up years ago and I don't see them skinking away from this business, nor the consumers who fuel it. I can't see Tesco and the yanks selling second hand clothes anytime soon, so I really don't think they want any other grubby products in their sterile shops, do you?

Another passing fad

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Thieves

posted by Sanjin Feb 24, 2010 at 4:51 pm
5
Sanjin

The sooner we move to a full digital distribution model, the better. These parasites add nothing to the game industry

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at last

posted by wiz1000 Feb 24, 2010 at 4:55 pm
6

Frankly its about time somebody legitimate entered this space. I'm personally fed up of my local CEX, with their obscenely inflated price/credit system, their pubescent staff, the raging metal music... talk about reinforcing the cliché!

If done well it should provide for a recycling of money from, and then back to, a more mainstream gamer. With luck, this more mainstream shopper will eventually buy more new games, more often, which is only a good thing for this over-supplied market.

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Oh Please Sanjin

posted by Warick Hunt Feb 24, 2010 at 5:00 pm
7
Warick Hunt

Thieves? Are you sure?

Same old same old. 'We want a cut of the second hand market that peddles the utter crap we punted out there in the first place' give it a rest will you.

Yes lets herald the DD model. Lets also see how many people buy into full price downloads. Not half as many as publishers seem to think. Yes loads of downloads are happening, but for utter dross and at a few quid a pop. pocket money basically.

As for Asda and Tesco doing pre-owned. Its interesting, but they'll need to invest in proper staff who know their onions or it'll be a disaster.

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Scared

posted by Bobby Davro Feb 24, 2010 at 5:51 pm
8
Bobby Davro

The more Tesco take over the World the more that two things come to mind.
(1) If they ever go bust that will be 50% of Britain out of work!!!
(2) Microsoft got kicked in the spuds for being a monopoly. When will Tesco get told to **** off and stick to fruit and veg?

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.

posted by M Kelly Feb 24, 2010 at 6:05 pm
9
M Kelly

It'll be interesting to see what this does to Game and Gamestation- unable to lean on the second-hand market so much because it's been spread thinner means they'll have to start carrying a better selection of games, and actually hold onto them for more than thirty seconds, rather than just buying in two or three copies of something that'll be a big hit and waiting for them to come back.

Result? New sales up, prices down, second-hand undermined. Presuming, of course, it works for Tesco- it didn't for Walmart.

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Goodbye Independents

posted by Link1983 Feb 24, 2010 at 6:57 pm
10
Link1983

Goodbye Dear Friend.
Your originality and knowledge will be missed.
The excitement and dedication
I write this with the heaviest of hearts and can only pray you are never forgotten.
To the new Fuhrer, we will never be silenced,
our paradise lost,
We will unite and rise from the ashes.
Your time is short lived.
Long Live the Independent!

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Great Sentiment but....

posted by cainer Feb 24, 2010 at 10:59 pm
11

Well said Link1983. But I think its worth considering the fact that this big announcement comes at a time when The Game Group shares are at an all time low. Is this purely coincidental? Its well documented that selling new games at supermarket prices = zero profit and that Game Group only make money through preowned. Which direction will their share price head now? It's already hit a 52 week low today.

Walmart, tesco el at are certainly living up to expectation. Wiping out the traditional high street retailer. Did anyone else notice the aggressive attack they made on Florists and the restaurant trade during Valentines Day ("week" as it is now). I hope these hypermarkets have planning for larger car parks....

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So long.... it's been fun

posted by Mark Elliott Feb 25, 2010 at 8:49 am
12
Mark Elliott

Well considering i try my hardest not to go into either places i won't have to ever see how badly they implement this.

Let's be honest... Game and Gamestation are terrible at it as it is, they charge so much for a pre-owned title its untrue hell even my local game in Aylesbury now has more pre-owned titles in its PS3 and 360 Sections than new ones, walking into that store now just feels like a cash convertors...... lol

HMV have also really done this badly and almost no-one in my town even takes that place seriously unless they need to palm off old crappy Wii games.

Supermarkets have no idea what they are doing about almost anything they just happen to be everywhere and stock such a wide range of things that they take a piece of everyone's market by pure fluke and because a growing number of people are too lazy to look around their own town to find better shops.

Hey we all know that inside the next decade all this is over anyway, considering how a 99 year old company like woolies went recently don't bet on places like Game and Gamestation to even be around that long as it is. Digital distribution is a fact, the software companies want it and so do the publishers so even if you personally don't want it or even like the idea it's all tough cookies, we are all society lemmings when it comes down to it and eventually even the strongest will has to bend to the inevitable....... Even me and im mega stubborn!

I wonder if tesco's are hiring............ lol lol lol

(i'd rather die)

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stupd

posted by Jonny Feb 25, 2010 at 1:44 pm
13
Jonny

This is pathetic, All Tesco wants to do is destroy all the small indendant shops. Soon Tesco will be everywhere! I work in a independant games shop with 2 tesco's in the area. If they both start doing pre-owned - the frustration level will be high up.

Jonny

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Come on now

posted by Simon Cleft Feb 25, 2010 at 2:14 pm
14
Simon Cleft

that's stupid. i should imagine Tesco's motive is the increasing of profits, not the eradication of indies. I doubt they're even aware indies exist if I'm being honest.

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@paul johnson

posted by JB Feb 25, 2010 at 3:29 pm
15
JB

Paul, I would just like to say thankyou for your following comments with regards to the supers moving into the pre-owned market:

"that means we can get rid of all our scratched games, load off faulty games etc etc, this week just gets better and better ! and then we can get our new games even cheaper"

Why the thanks? Well, you have, in your utter stupidity, just justified everything I have ever said about the indies. What a tool you are.

Yes, heres hoping this move by the supers will eventually be the final nail in the coffin for the rip off, underhanded indie sector.

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@Mark Elliott

posted by JB Feb 25, 2010 at 3:32 pm
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JB

"Supermarkets have no idea what they are doing about almost anything"

They know enough to undercut the high street at every turn and still make a profit. Can you do that? No, thought not.

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lol

posted by paul johnson Feb 25, 2010 at 3:42 pm
17
paul johnson

i know how to take all my faulty consoles up to tesco and faulty games and get refunds from these idiots, even done it a few times with no reciept, the women let me do it since she has seem me in te store loads, lol !!! we just buy a new console or game then return the faulty one, saves sending em back to suppliers or amazon, thanks JB hope to see you working in the next supermarket i use

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TESCO

posted by Martin Feb 25, 2010 at 5:07 pm
18
Martin

Have phoned the TESCO in question, and here's what they are doing:

They accept games for store credit only for the current consoles only

They do not give cash, nor accept PS2 or PC games, or Consoles/Hardware at all. I forgot to ask RE PSP games (HMV do not take these).

They are also not accepting DVD's, CD's, iPods, or any older stuff.

Their store credit however is for the entire store, so you can trade your games for beans.

It is annoying they are doing this but it isn't the end of the world, as long as you diversify your offering and keep an eye on what they are doing. Methinks it will impact the other non specialist & limited pre-owned stores (hmv) more than indies.

Haven't contacted ASDA

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@paul johnson

posted by JB Feb 25, 2010 at 6:27 pm
19
JB

Wow, you really told me there, paul! And there was me thinking independent game stores were run by unsavoury types who go out of their way to con everyone and anyone to make a profit...(sarcasm)

Something tells me other indies wont share your enthusiasm for proving my point-again.

Oh, and just so you know Ive screen grabbed all your revelations and once Ive found what the name of your business is, (which wont take long), will be forwarding the information to the relevent people, including your local Supermarkets. No one likes thief, which is exactly what you have admitted to being.

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@paul johnson

posted by Leemondo Feb 25, 2010 at 9:05 pm
20
Leemondo

Firstly, I CANNOT BELIEVE I AM ABOUT TO SAY THIS.

I agree with jb.

That is a first - and probably only. We've had numerous run-ins in the last few weeks, but jb is absolutely right.

Paul - how the HELL can you justify doing that? Taking your faulty games and consoles to trade-in anywhere just isn't right. You would be the first to complain if someone did it to you - just because Tesco are a huge company with massive profits does NOT give you the right to take advantage of it.

jb - first intelligent comment I have EVER seen you post mate! ;)

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Outrage

posted by Crackerman Feb 28, 2010 at 10:28 pm
21
Crackerman

As a consumer I find what this independent retailer, Mr Paul Johnson, is doing utterly offensive. The man shouldn't be allowed to practice business as he's clearly a crook and a thief.

MCV should disallow him from posting on their site and forward his details to trading standards, even the police, as he is openly addmitting to stealing from his local supermarkets. I can see why do many people won't miss the independents if this is how they practice business.

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@Crackerman

posted by JB Mar 02, 2010 at 4:59 pm
22
JB

Dont waste your time mate. Paul Johnson and others like him are, as you say, a bunch of crooks and because of that they dont care who they screw over. Paul and many other indies constantly bemoan the crimes of software pirates and yet see nothing wrong in returning their faulty stock to supermarkets and the like for cash refunds, which is, in itself, theft.

Sad thing is many a user on here support their actions. All a bunch of hypocrites.

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