ASDA confesses its pricing sins [X360]

Wednesday October 28, 11:17 AM

Asda has revealed that it doesn’t make any money selling triple-A games at rock-bottom prices. It’s all in the name of offering “good value for money” to you, the games-hungry consumer, apparently.

That’ll be no comfort to smaller games retailers, a growing number of whom are greatly miffed at what they see as “bully-boy” pricing tactics. Such accusations are hotly disputed by Asda games category manager, Duncan Cross, who bleats:

“...we aren’t making any money on FIFA 10 because the price we have had to pay to the supplier is more than we are charging our customers.”

“I am sure the other supermarkets are in a similar boat, so to criticise them as 'bully boys' doesn’t make sense to me – how can you be a bully if you are selling something for less than you buy it at?”

But that’s not good enough for Chips MD, Don McCabe, who tells gamesindustry.biz:

“Any idiot can sell something for less than they bought it for and have fantastic sales but it doesn't exactly make a business.”

McCabe then notes how such “destructive pricing” policies make life difficult for those of his ilk, when customers cannot comprehend why independent games outlets are unable to match the loss-leading prices at retail giants such as Asda.

It’s a fair point too, we guess – there have been some irresistible bargains in the big groceries in recent weeks, with blockbusters such as FIFA 10 and Operation Flashpoint going for as little as £25. Those are a massive savings off the regular RRP. More importantly, they’re offers that indie retailers with less buying power are simply unable to match.

It’s all getting very handbags at dawn, but the war of words continues apace and Asda, at least, remains committed to its policy of offering the biggest games at the smallest possible prices.

That may well benefit consumers in the short-term. But how happy would you be to see your friendly neighbourhood games emporium disappear, just because it lacks the ability to compete? Hmmm...

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