Is NewEgg headed for a major lawsuit?

[aholbert32]

Re: Is NewEgg headed for a major lawsuit?

EA could sue them to the value of their company. This is sort of like copyright infringement, but in a way that undermines an entire advertising and launch structure.

LOL...its not even close to copyright infringement.

[aholbert32]

Re: Is NewEgg headed for a major lawsuit?

Learn to read; did I say that? I'm not complaining about it, but if I were the CEO of Gamestop, and I'd spent the money and time and advertising resources to sell the game according the rules set forth by EA, you'd bet I'd be complaining. I would sue EA, which in turn, could sue NewEgg if there was an agreement in place, which there likely is.

I have the game, but I don't have a dog in this fight.

Your suit would be thrown out of court during the motion to dismiss stage. The agreement between EA and retailers is one sided. The retailers agree not to sell the game before the release date. EA is not obligated to enforce the agreement if it chooses not to. EA can choose to ignore the early sales or it could file a breach of contract action against NewEgg which is unlikely since EA wants as many retailers as possible to sell their games.

Since GS is not a party to the EA/NewEgg retail agreement, they would have no grounds to sue EA or New Egg or anyone.

[Trevytrev11]

Re: Is NewEgg headed for a major lawsuit?

EA may have different contracts for primarily brick and morter retailers vs. online retailers as I believe they do with wholesale retailers like Costco and Sam's.

I believe your Wal-Marts, Targets, EB games, Gamestops, etc. are all forced to sell new games and hardware at a set price and can only discount it when the manufacturer allows them. It's the reason why Madden will pretty much be $59.99 everywhere ($59.96 at Walmart). However, when you go to Costco or Sam's, you will see it for $54 or close to it.

You'll notice when retailers do offer promotions, it's always for free stuff (free $10 gift card, free game, etc. and never just $10 off) as I believe they are contractually not allowed to do so. Though this practice goes on with almost all electronics now days.

So if your the manager at Game Stop and you're upset their shipping it early, you are probably also upset that the Costco or Sam's down the street is selling the game 10% cheaper than you as well. But in each case, theres probably nothing you can do about it.

[Fresh Tendrils]

Re: Is NewEgg headed for a major lawsuit?

**** gets released before STREET date all the time and nobody ever gets sued.

[CMH]

Re: Is NewEgg headed for a major lawsuit?

EA may have different contracts for primarily brick and morter retailers vs. online retailers as I believe they do with wholesale retailers like Costco and Sam's.

I believe your Wal-Marts, Targets, EB games, Gamestops, etc. are all forced to sell new games and hardware at a set price and can only discount it when the manufacturer allows them. It's the reason why Madden will pretty much be $59.99 everywhere ($59.96 at Walmart). However, when you go to Costco or Sam's, you will see it for $54 or close to it.

You'll notice when retailers do offer promotions, it's always for free stuff (free $10 gift card, free game, etc. and never just $10 off) as I believe they are contractually not allowed to do so. Though this practice goes on with almost all electronics now days.

So if your the manager at Game Stop and you're upset their shipping it early, you are probably also upset that the Costco or Sam's down the street is selling the game 10% cheaper than you as well. But in each case, theres probably nothing you can do about it.

I could be wrong, but one thing that one might add to this is competition within a franchise.

A place like Gamestop will stick with a certain release date because if one store breaks the street date it becomes a competition within the same franchise. Gamestop will always be interested in protecting their stores from each other.

A place like Newegg is basically one entity because it is an online store. Ma & Pa shops are usually not franchised. They break street dates because if they don't then they'll lose out to other similar stores that will.

[pfunk880]

Re: Is NewEgg headed for a major lawsuit?

I could be wrong, but one thing that one might add to this is competition within a franchise.

A place like Gamestop will stick with a certain release date because if one store breaks the street date it becomes a competition within the same franchise. Gamestop will always be interested in protecting their stores from each other.

A place like Newegg is basically one entity because it is an online store. Ma & Pa shops are usually not franchised. They break street dates because if they don't then they'll lose out to other similar stores that will.

That's a really good point, I hadn't considered that.