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What's Up With Xbox and GameStop?

François Chang, Contributing Editor of DualShockers writes, "I’m going to start off by saying that my original Xbox 360 was acting real sketchy. It began making a lot of weird noises and sounded significantly louder. It almost sounded as if the fan was busted or overworking. In fact, I wouldn’t be surprised if that was the case. It would also overheat every now and then. What worried me even more was that the overheating becoming more and more frequent. I decided to sell my Xbox before it was too late. Sell my Xbox before it got the red rings of death!..."

Update:

Photographic Proof: http://dualshockers.com/201...

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Ninferno2617d ago

thats crazy, im about to do that now!

Dee_912617d ago

im getting in on this before they change it

Christopher2617d ago (Edited 2617d ago )

I'm wondering how they plan to make any profit on the $100 trade-in. It doesn't make any sense whatsoever since new arcade pricing is $150.

Perhaps they have a deal with Microsoft, but seems kind of a far fetch of an idea, but not impossible. Personally, I think these kind of deals should be made public in their behind-door dealings.

I do also have an issue with how these trade-ins will only help to increase Microsoft's console sales, but it will likely only be by a few hundred thousand if even that much.

Bigpappy2617d ago

Would it not make sense for M$ to offer $100 deal to original 360 owners, who might want to trade up? We get a new console with better feature without having to pay the same as a new buyer. I am almost certain that M$ is re-imbursting GS for ever 360 traded towards the 360S.

Hitman07692617d ago

Just get a PS3, I'm sick of not being able to play with you online and I can't afford my Xbox yet!!!

avengers19782617d ago

Just helps gamestop get more in store to sell.

HolyOrangeCows2617d ago

Wait.....he traded in an old 20gb xbox (sans HDD) w/composite cables, Banjo Kazooie, and Tatsunoko vs. Capcom and got $160?

Something seems off about that.
I mean, they gave him $125 for the 360 when they sell used ones for $140? http://www.gamestop.com/Cat...
(BTW...why wouldn't you just spend $10 more and get a NEW 360 w/o a HDD?)
Gamestop usually gives you less than 50% of what they're going to sell it for.

Ninferno2617d ago

that's why it is so weird... I should know. I'm the author.

SeNiLe9112617d ago (Edited 2617d ago )

they would only give me $60 + $25 (promotion going on now, http://www.gamestop.com/gs/... ) = $85 store credit for my Xbox 360 or $100 toward the New Xbox 360 (S). Can you provide a scan of your GS receipt Ninferno?

This looks to be a huge YMMV.

lve2playbball2617d ago

I traded in my 4 yr old original xbox (with some games) and only ended up paying $60 for the new "Xbox S"... THey gave me $100 for the xbox and $30 for the 20gb hdd. I wasn't gonna do this until I saw that they were gonna give me $130 for my 4 yr old xbox...HA

...No hdmi cable...pure WEAKNESS, and I still HATE that power brick...it's smaller, but it's still freaking there.

Tangostarr2617d ago

When Red Dead Redemption came out I saw the trade in deal where you could trade in any two games on a list and pay only $20 for a preorder. So I traded in MW2 and AVP but the guy at the counter said he could get me a deal. I stood there and he did a few things on the register and said it'll be $6. After looking at the receipt I noticed I only paid the tax. Whatever he did got me Red Dead Redemption for a little more than the total tax. It just said Bonus with a percentage on the receipt that added quite a bit to the trade in value of those two games. I'm definately not complaining but I think the employees know how to give out discounts.

+ Show (1) more replyLast reply 2617d ago
FreeFalling2617d ago

Those employees don't follow the rules. Look at the gamestop website. It says clearly that the deal can ONLY be used towards the purchase of an Xbox 360 S... so the employees made an error. :]

Hitman07692617d ago

UH OH Somebody's getting fired tomorrow.... Epic Fail!!!

ThanatosDMC2617d ago

The author got a great deal then... HAHAHAH!

Anon19742617d ago

No dice here. The trade in value of an Xbox console is $25. I had to call back and confirm that we were talking about a 360 and not an original Xbox. Right now they have a promotion running that if you trade in your old 360 towards new hardware you get an additional $50 - so $75 in total.

He told me this recently changed. They were offering $40 for a 360 trade in only yesterday but they've dropped the trade in value now as they don't want to be flooded with old 360's as the new model is coming out.

If you can find this deal still, I'd grab it. Looks like they're changing up.

+ Show (4) more repliesLast reply 2617d ago
cobraagent2617d ago (Edited 2617d ago )

they make profit by that...

Montrealien2617d ago (Edited 2617d ago )

look at it this way, if they would of just sold him the console, alone, they would of made 0$ since there is no margin on consoles. If they sell atsunoko vs. Capcom and the Banjo game, they make more money then they would of selling one brand new console to a customer. And they got a used Xbox, to sell also.

btw, I think the clerk didnt do his job corectly.

dizzleK2617d ago (Edited 2617d ago )

this isn't about profit for gamestop, i'm sure it's paid marketing from ms. they're probably reimbursing gamestop for their losses and they get to pad their sales #s. stuff like this is always manufacturer marketing, gamestop doesn't do it out of the goodness of their hearts.

ms wants those older consoles off the market so they can stop fulfilling rrod warranties, this marketing probably costs them a lot less $. it's just logic.

edit-why the disagree? i've worked at gamestop, stuff like this is always straight from the manufacturer, whether it's sony, ms or nintendo.

Stephen55432617d ago

I highly doubt that Microsoft has anything to do with Gamestops trade ins. If it were up to companies like Microsoft there would be no trade ins or pre owned systems/games.

The reason he got the system so cheap is because the Arcade is discontinued and being sold for 150 now instead of 200.

dtalon32617d ago (Edited 2617d ago )

really you worked at gamestop? wow for someone who is so clearly uninformed you must have only been what, a game advisor?

EVER NOTICE HOW WHEN A NEW CONSOLE GETS RELEASED THE COMPANY MAKING IT SELLS IT AT A LOSS? Well they make up for it in software sales (that is just general knowledge)

Think of it this way, even if Gamestop sells that at a small loss which it isn't (a pre-owned system at GS is $139.99) so they still make a small amount on the system. Then that huge wall of pre-owned games comes up and pre-owned is %100 profit for gamestop (if your buying a used system your probably going to buy used games & accessories). not to mention that this trade in deal will end and they will have a bunch of stock of xbox360's, which will only increase software/accessory sales.

It really is not all that difficult to comprehend how and why this is happening...the unfortunate news to sony fanboys is that M$ is not paying for this.

dcbronco2617d ago (Edited 2617d ago )

I gave you a bubble up though. I think you're exactly right. This is a Microsoft promotion all the way. The 360 has been profitable for the hardware for some time now. At this point the console itself is $200 to make. With the new Valhalla chip it should be no more than $160 or so to make. The HD in the Slim only cost them about forty bucks and the Wi-Fi less than that. So they're making close to $80 on each slim sold.

RRoD cost MS a ton. In the first year after acknowledging the issue they set aside 1 billion. That was before they realized how big a problem it was and offered the lifetime warranty. They need to get rid of those old 360s.

So even if someone trades in a 360 for $100. And they got $25 for an extra controller and $14 for a memory card. They still pay $150 for the new console. And most likely buy a second black controller. MS also probably give GS a little extra on All 360s sold which are all making a profit at this point for MS.

I would also bet there is a backdoor deal for them to consolidate their repair services. That would relieve some of GS' cost on repairs on systems with a extended warranty. GS gains there too.

So MS makes money on new machines and less repair cost. GS makes money on discounts and less repair cost. They both make money here.

Forgot the $30 for the HD but it's still profitable for both.

dtalon32617d ago (Edited 2617d ago )

dude all companies have a deal for defective products. Also I was not talking about the slim I was talking about the older model 360's, that brings a different dynamic when you talk used - new product transition sales.

I have been in management for videogame retail I am not just making this up.

BaSeBaLlKiD7212617d ago

Maybe I missed it or something, did he buy the new Xbox 360? or he just got a new arcade?

BeaArthur2617d ago

I'll just hold on to my old one. No sense in trading it in just to get the same thing only smaller.

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