Thursday, January 17, 2008
GameStop's Pre-Order Racket.
Is GameStop running a retail "protection" racket?
Let's look at how protection works in organized crime.
A criminal warns you of possible harm, and then explains that for a fee, they will protect you from it.
When a customer goes to GameStop, they are warned that if they fail to pre-order a game, it will not be available to them.
If you leave a deposit with GameStop you will be "protected" in the event that not enough copies are available.
GameStop has a motivation to get as many pre-orders as possible, as this money (in the interim) can be invested elsewhere.
When a customer doesn't pre-order a title, GameStop employees will refuse to sell them a copy of the game to create the illusion that paying protection is necessary. (See previous post)
If GameStop freely sold in-stock games to customers, then there would be no reason for anyone to pay them "protection".
Can you spot the difference between GameStop's retail policies and a protection racket?
Yeah, me neither.