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Is EB Games threatening to drop Xbox 360 from its stores?

January 29, 2008 in News comments 20

You try and do a guy a favour and what happens? You get sand kicked in your face... that's what.

EB Games is apparently locking horns with Microsoft regarding a substantial pile of faulty Xbox 360 consoles in Australia, gathered by the retailer, in an effort to help consumers avoid Microsoft's customer service. The retailer wants compensating, but apparently Microsoft isn't playing ball.

Over the weekend, a Kotaku AU reader sent through a chat log containing an enlightening conversation with "an associate of mine who holds a high position within the EB organisation".
According to the log, Microsoft is refusing to take responsibility for its defective consoles, leaving it up to the games retailer to make the best of a crappy situation.

EB Australia has $10 million worth of defective Xbox 360s gathering dust, as Microsoft is unwilling to take them back. As a result, EB is no longer stocking the 360, except as second-hand or pre-owned units. A search of the EB Games website for "xbox 360" confirms this.

"There have been threats of EB dropping the Xbox range all together," says the transcript.

"Add to this the fact that price matching got really cutthroat during this past Xmas, they were selling far too many units under-cost and getting a bunch back defective, but Microsoft [refuses] to reimburse for," the transcript says.
mistermostyn via kotaku.com.au »
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Most recently commented on by on Jan 31, 2008

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  • 1
    Chekkaa Jan 29, 08
    Microsoft needs to take responsibility and pay them back. That's not fair to Gamestop that they have to lose money for Microsoft's broken consoles. I would stop selling them too if I were in that situation.

    Either that or keep selling them but not pay Microsoft anything back to compensate for the lost money... What?
  • 0
    Seeker X Jan 29, 08
    Holy shit on a stick, this is huge. Especially when you decide to stop selling games for a certain console to save money (?) Or is this some sort of payback?
    • 1
      Akira_EX Jan 29, 08
      I'm pretty sure this is payback, because this time around EB actually tried to do some Quality Control on their part, and won't get compensated for it.
  • 0
    BANDITO ATTACK Jan 29, 08
    EB games commits suicide, this is the I HATE MY LIFE AND YOURE ALL MEAN TO ME note
  • 0
    jmac353 Jan 29, 08
    This is *bleep*ed on EB Games' part. Absolutely stupid. Wow, I can't believe a company would screw up like this. You NEVER handle this stuff yourself, especially when the problem is so widespread.
  • 0
    Incidnia Jan 29, 08
    LOL they will probably just give EB Games employees another free pile-of-shit xbox live arcade game.
  • 0
    Slumpy monkey Jan 29, 08
    Hey I thought undertow was pretty fun
  • -1
    Incidnia Jan 29, 08
    You thought wrong....
    • 0
      Slumpy monkey Jan 29, 08
      No I didnt I enjoyed it. I can enjoy it if I want. Your just giving it shit because its free. Anyother game MS chose and you would be giving it shit.
  • 0
    Storm Jan 29, 08
    Those 360's were probably around since release date, when they where more prone to being faulty. :S It's stupid to stop selling the consoles to make a point, as I'm sure the later models are actually the better product to be show-casing, but then again Microsoft do need to step up and take care of the problems in Australia.
  • 0
    The New Era Jan 29, 08
    All EB Games is gonna get is a *bleep* load of crap from the Xbox 360's producers, and any of the lame fanboy's that support it, they're not helping business imo
  • -1
    Final Blade Jan 29, 08
    Wow that sucks, why is Australia getting the bad consoles...
  • 1
    Smoke Jan 29, 08
    Props to Australia EB. If I were a retailer who was losing money because the supplier made faulty products and didn't reimburse, I would stop stocking as well. Anyone who thinks otherwise is a fanboy.

    It isn't the retailers fault that Microsoft rushed a product, they should not be forced to take the loss. It's simple economics.
  • 0
    Cdemon Jan 29, 08
    Microsoft are repairing the consoles for free, though; It's their (EB AU) own stupidity for taking them back.
    • 1
      Shadow of Death Jan 30, 08
      It is general practice though, many retailers do it...

      USUALLY, I think, they get some sort of help from the company that made said faulty product...

      EB's main prob, is that there are SO MANY of them....$10 million worth....There were a LOT of defective units coming in early on, and MS is still gettin a steady stream of busted ons >_>

      If people stop buying new 360's in australia, what happens? MS stops getting money from that (they're starting to turn a profit), and people are more likely to get a new Wii or PS3...

      Meanwhile, EB will sell the refurbished/second hand 360's and keep all the money, since they're used....MS will still get money from new games sold, but there will be less console units in circulation, since EB is a major retailer of gaming stuff, and a lot of people go to them to get games and consoles....

      Still, it hurts both EB and MS....EB/Gamestop has a good sized pocket to itself, being a major international chain of stores, though MS has way deeper pockets...

      MS might want to do something to rectify this prob >_>
  • 0
    Dance Floor Killah Jan 30, 08
    I'm sure they could find SOMETHING to do with all those broken consoles. They could always make a pyramid.
  • 1
    Play ISDF Jan 30, 08
    It does sound like EB Games set themselves up to be stuffed. They offer extended warranty right? This is not under Microsoft's warranty plan and thus they have no responsibility to repair them. It's EB's warranty, and thus their responsibility. I understand why they are pissed, $10 mil in wasted consoles is a lot of cash and I'd want something done about it if I were them, but Microsoft has no obligation and dropping the 360 is going to hurt EB more then Microsoft.
    • 0
      Cdemon Jan 30, 08
      Ex-*bleep*ing-actly. Couldn't have said it any better.
  • 0
    forahobby Jan 30, 08
    This story is a rumour..

    Get the facts on 360-hq.com:
    http://www.360-hq.com/article-2316-thread-1-0.html
  • 0
    Sort Jan 31, 08
    This story quotes a chat log from a Kotaku reader and everyone is taking it as fact.

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