Cast your mind back to a couple of weeks ago, and you might remember a story about UK retailer CEX reselling Xbox Series X consoles at a significantly higher price than the RRP - a practice that has seen the company come under fire from customers and even some staff members according to a new report from Eurogamer.
The report acknowledges that the biggest culprit is the PlayStation 5, which is being sold at up to an eye-watering £815 by the retailer. The company is also paying £200 more than the RRP to acquire the consoles from early adopters.
Here's what one staff member had to say about the decision to Eurogamer:
"Obviously none of us think it's good. We have been told that the price is that high to match with eBay but that's when it was £750, it's now even higher.
"CEX is legally in the right to put the price to whatever they want but morally I find it repugnant and think they are helping keep the scalping prices so high in a year when we could all use a little bit less crap to deal with."
Interestingly, Eurogamer also notes that it has seen an internal email about the prices for pre-owned Xbox Series X stock, which suggests that angry customers should be told that the retailer's prices (£690) are lower than some of the sky-high prices on eBay, and that it also offers a 24 month guarantee with these systems.
Allegedly, the company has been able to instantly re-sell every Series X sold to them so far, and hundreds of additional customers have also registered their interest - so it sounds like they're doing pretty well out of it!
What do you make of this practice? Give us your thoughts down in the comments below.
[source eurogamer.net]
Comments 12
@Medic_Alert So...basically, GameStop, then?
End of then day they buy the consoles from customers at rrp (on X and 5) and to make a profit have to raise the price. Simple business. The amounts aren't unexpected, look at all the other scalpers selling them for 4 figures. And anyone who actually knows cex knows they're ridiculously overpriced on most of their stock. Just have a look at their site and look at last year's flagship phones. They're practically charging rrp still for 2nd hand, year old devices.
I guess it’s a legit business and they pay more for the console, then sell it for more with 24 month warranty.
Don’t forget they take the risk paying above RRP to get them. If Microsoft and Sony flooded the market with consoles all of a sudden, then CEX would be left with stock and have to sell them for less than they paid for them.
So it’s risky business, they take the risk.
@Medic_Alert Ahh, it really is a pawn shop then. Though it's not like Game Stop is that much better. It's a store full of used stuff, plus like 2 copies each of new games - new hardware & accessories, and a floor full of apparel, phones, and swag.
But they were infamously the sole exclusive US publishing/distributing partner for original Xenoblade on Wii because Nintendo didn't think it would sell. They sold out of course, and when Nintendo did resupply with one more production one, they immediately opened every single new copy, then put them on the shelf as used at a markup over RRP. Basically the same as this on a somewhat less gouging scale.
@Medic_Alert "some"... I've seen some very interesting characters over the years in CEX. When they were first Computer Exchange I used to get some great imported games. Now the place stinks and has headache inducing music. Used to love buying HD DVDs from them for pence when it was free postage as loved the fact it cost them more to send it to me than I paid for it.
If people didn’t scalp the market then their prices would be more reasonable. It’s the people who are paying the ridiculous prices that’s causing the problem. I quite like CEX as I find their prices are quite reasonable for most things
I used CEX back in the day when their first shop ever opened in London, A couple of their there staff where well known and even got cameos on EastEnders.
I used to buy imported Neo Geo games, that’s why games seem so cheap to me know 😂😂😂
@ResoluteCustoms no there buying for. More than u paid for it maybe hundred plus but then resell for another hunfered on top. Of. That
@MrYoYoMan84 I can't reply as your typing is almost as much a joke as cex's prices.
@ResoluteCustoms CEX are offering people more than RRP for their consoles. In the case of the series X if you give them a boxed version they give you £100 over the RRP. Not sure I agree with everything being over priced. I've found them quite reasonable for most things.
At this point, they’re pretty much the ticket tout scumbags you’d see outside gigs, with the advantage of having a chain of shops.
I mean it's kind of their business model to sell things for more than they pay for them. If they sold it for RRP, that means they'd have to offer significantly less than RRP to buy them off people, and nobody would be trading it for less than RRP.
Not sure what people honestly expect them to do?
Tap here to load 12 comments
Leave A Comment
Hold on there, you need to login to post a comment...