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View Full Version : Asda admits to making no money on cut price games



Zeus
10-28-2009, 03:45 AM
UK retailer ASDA has denied that it made any money at all from cut price games such as the sub 30 UK pounds FIFA 10 launch. They have also denied that they 'fix' prices with their suppliers and claim to set prices all on their own as they wish.

<blockquote>Retailer ‘didn’t make any money’ from sub-£30 FIFA 10 launch; Firm strongly denies ‘screwing suppliers’

The truth is out: Supermarkets lose money on the triple-A titles on which they choose to slash prices.

That’s according to Asda games category manager Duncan Cross, who this week lifted the lid on the supermarket’s Q4 price cuts – and tackled the concerns of the indies that have crammed MCVUK.com’s messageboard in recent weeks.

Alongside fellow supermarkets Tesco and Morrisons, Asda has already cut the likes of FIFA 10 and Operation Flashpoint to sub-£30 price tags this quarter – with all eyes on the release of Modern Warfare 2 next month.

But despite accusations from specialist retailers that the UK’s grocers ‘fix’ product in collusion with publishers, Cross claims that Asda sets its own prices.</blockquote>

News Source: <a href="http://www.mcvuk.com/news/36271/Asda-admits-to-selling-below-cost" target="_blank">MCVUK</A>

tech3475
10-28-2009, 04:45 AM
I believe the term is loss leader. Supermarkets charge less for the games but hope to make it back because people go and buy other more profitable items such as their weekly shopping.

Its like when popular book come out at a fraction of what they are in the book shops.

It also helps marketing such as their "our items are cheaper" adverts and their percentage of the market to try and get investors as well as customers.

MadonnaProject
10-29-2009, 12:34 PM
You'll live EA. now wheres my cheap games?