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NEWS > GAMES > GAMESTOP TO OFFER WARRANTIES ON RECEIPTS

GAMESTOP TO OFFER WARRANTIES ON RECEIPTS

December 11 2008

Grapevine, Texas – The largest video game retailer in the world has found a new way to fight the economic blues and hopefully help their customers. Siding with what is of late common practice, the retailer plans to start charge 25 cents per plastic bag in an effort to reduce waste, but will also begin offering insurance on receipts issued from any location for an equal 25 cent fee. 

“We are thrilled to be offering our consumers not only the greatest value in videogames, but also the best in customer service peace of mind. We realize our customers have busy lives and we want to do our part to make things a little easier for them,” said company COO Daniel Dematteo. “Our customers are the most important part of our business and we want to let them know we are working for them. This new warranty will ensure that they never need to worry about the status of their receipts.”

The warranty is intended to cover fading and damage but will not cover loss. The fee will be primarily focused on customers who purchase extended warranties on game games systems and software and need to retain their receipt in order to make an exchange.

“With this addition to our warranty program we feel we offer customers the most robust customer service experience in the industry,” continued Dematteo. “Combined with our knowledgeable and enthusiastic staff, used games and trades, and competitive pricing we feel GameStop should be the only stop for gamers and the families of gamers. Power to the players!”

Aside from criticism over the need for such warranties, such as keeping a record of the original warranties, or printing warranties on something other than fragile thermal paper, some see this as a risky move for the company, putting them in a position to possibly have to make good on many more exchanges.

“The reason for not keeping a record of warranties, particularly on software, is to of course limit returns. The company fully realizes that the majority of games will never be damaged or that they will be completed in a matter of weeks. Of that small percentage that actually wants to make good on a return a chunk of those people are either going to lose their receipt or they will be so faded that they will be unusable,” said Scrape TV Gaming analyst Graeme Hawthorne. “It’s in those percentages that profit can be made or broken. Of course if you play the numbers game twenty five cents per receipt could pay off large in the end.”

In a somewhat confusing move, the warranty for the receipt will be located on the original receipt, making it difficult for people to actually make good on any redemption. The company will also be offering a plastic keepcase for an additional two dollars that will allow up to four receipts to be stored.

“GameStop has really made an art of warranty offers. They really are the model for all other retail to follow,” continued Hawthorne. “The diversity of warranties and the depth of customer manipulation is second to none and serves their bottom line spectacularly. I can’t even fathom what the dollar value they must bring in from the warranty program but it has to be significant.”

Officially the company has no comment on the dollar value attached to their warranty program as they do not keep records for warranty profits.

Reportedly the company is also experimenting with an entry warranty, which would insure customers against injury caused after entering the store. Details are scarce at the moment the insurance would likely take the form of a flat fee and only cover GameStop induced injury. It is unlikely that the insurance would cover mental fatigue from the extended time spent at the cash caused by the enormous number of add-ons.

Douglas Havermore, Games Correspondent

NEWS > GAMES > GAMESTOP TO OFFER WARRANTIES ON RECEIPTS

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