The recent round of news stemming from the NBI raid of DataBlitz stores around the metro has given us quite an insight on how the machinations of distributorship comes into play.
A couple of months ago, we touched a little bit on the way distributorship works in the Philippines in our story ‘Why international gadgets don’t have local warranty‘.
X-Play has been aggressively mobilizing their PR machinery to get their side of the story and explain why they had to resort to going to the courts and had all of the branches of DataBlitz raided.
Whether the allegations that pirated copies of NBA 2K13 are being sold by DataBlitz are true or not, it was up to the local courts to determine probable cause so let’s leave it to the judge who signed the warrant to make the determination.
But here’s what we can make of this whole mess — that X-Play is running after DataBlitz because the latter was selling copies of NBA 2K13 that were not officially distributed by X-Play. This means that X-Play wasn’t making any money for every legit copy of NBA2K13 that DataBlitz has sold.
What DataBlitz could have done was made parallel imports of NBA 2K13 and shipped them in from other countries like HK (the statement from DataBlitz mentioned they bought some copies from X-Play though). The copies could have been original (although news sites are saying they were pirated copies) and licensed but it was thru another distributor from another country.
From the looks of it, DataBlitz was selling a combination of locally distributed copies and parallel import copies.
While X-Play made from money by selling DataBlitz some of their copies, the ones that were imported by DataBlitz themselves aren’t counted. From a consumer point of view, it seems fair and legit since it still came from the original the game developer and publisher, 2K Sports.
From a business stand-point, it could be a different picture altogether. Let me try and shed some light on why this is so:
* X-Play claims they are an exclusive Philippine distributor of NBA 2K13. This means that they deal directly with the developer/publisher, 2K Sports. No other Philippine entity was given the same authorization to distribute.
* In return, the exclusive distributor is given a quota on the number of sales they should deliver. This means they will have to ship in and pre-pay a minimum number of units or license (I heard it was 20,000 licenses but let’s just assume that was the quota).
* The local distributor will also be tasked by the publisher to spend for marketing the product and other campaigns in the country. This is on top of what they committed to pay for the quota.
* The exclusive distributor will take on all these additional costs because they are promised by the developer/publisher that all local sales will go thru them and not thru any channels.
From a business stand-point this looks like a good proposition right? And it’s a pretty common practice in the distributorship (take for example the iPhone 3G/iPhone 4 and Globe exclusivity back in 2010) industry.
* If another local seller makes a parallel import of the same product and sells it locally, the distributorship is taken out of the loop and does not make any money. Parallel import is the act of shipping in original products from another country without the expressed permission from the owner/manufacturer/publisher. This means you can go to Hong Kong and buy 1,000 units of the iPhone 5 and then sell them in the Philippines.
* From the bigger picture, that 1,000 sale of the iPhone 5 is credited to sales of the Hong Kong distributorship, not the Philippine distributorship. Apple might not be aware of this and these are considered grey products.
* So if the local distributor was tasked by the publisher/owner to meet a sales quota in the country, their sales projections are now skewed because of the parallel imports. This means that if they projected to sell 20,000 units per year but the grey market was able to take 5,000 units and sold it first, it means the distributor is left with 5,000 unsold units for the year. They can still sell it the following year but that’s already somewhat considered a loss in potential sales.
There are a few things a distributor can do from this point on:
* They suck it up and continue paying for the fees to be the exclusive distributor and ignore the parallel imports.
* They give up the distributorship if they cannot meet the quota because of competition from parallel imports.
* Fight back and chase after the folks who import the products directly from other countries.
In this case, X-Play sought the help of the courts which prompted the raid.
We’re not taking any sides here. We’re just trying to explain what could have happened that led this this fiasco.
In fact I know of a lot of local dealers/resellers that combine locally distributed units with parallel imports in their inventory. This gives them better margins (from parallel imports) and at the same time some form of legitimacy as a dealer/reseller (since they also buy from the local distributor).
The last biggest case I heard before was Canon Phils. filing a complaint against Kim Store for selling parallel imports of Canon products. That’s probably the reason why you won’t see any Canon cameras in Kim Store’s listing.
Distributorship is a tricky (and risky) business. You either win big by grabbing exclusive distributorship or you can suffer great losses by getting burned from parallel imports.
YugaTech.com is the largest and longest-running technology site in the Philippines. Originally established in October 2002, the site was transformed into a full-fledged technology platform in 2005.
How to transfer, withdraw money from PayPal to GCash
Prices of Starlink satellite in the Philippines
Install Google GBox to Huawei smartphones
Pag-IBIG MP2 online application
How to check PhilHealth contributions online
How to find your SIM card serial number
Globe, PLDT, Converge, Sky: Unli fiber internet plans compared
10 biggest games in the Google Play Store
LTO periodic medical exam for 10-year licenses
Netflix codes to unlock hidden TV shows, movies
Apple, Asus, Cherry Mobile, Huawei, LG, Nokia, Oppo, Samsung, Sony, Vivo, Xiaomi, Lenovo, Infinix Mobile, Pocophone, Honor, iPhone, OnePlus, Tecno, Realme, HTC, Gionee, Kata, IQ00, Redmi, Razer, CloudFone, Motorola, Panasonic, TCL, Wiko
Best Android smartphones between PHP 20,000 - 25,000
Smartphones under PHP 10,000 in the Philippines
Smartphones under PHP 12K Philippines
Best smartphones for kids under PHP 7,000
Smartphones under PHP 15,000 in the Philippines
Best Android smartphones between PHP 15,000 - 20,000
Smartphones under PHP 20,000 in the Philippines
Most affordable 5G phones in the Philippines under PHP 20K
5G smartphones in the Philippines under PHP 16K
Smartphone pricelist Philippines 2024
Smartphone pricelist Philippines 2023
Smartphone pricelist Philippines 2022
Smartphone pricelist Philippines 2021
Smartphone pricelist Philippines 2020
Hen-Sheen says:
Monopolization. Datablitz does a “GOOD” job in handling the situation. They care about money! In one of their branches, I’ve asked them if they have a copy of that FF13-2 Guide, unfortunately they’re out of stock! One of the workers of that company proactively told me that they have 8 copies of that guide (per store)! They are being cutting edge in cutting down costs with this one 50+ customers & only 8 copies… Doesn’t make sense at all… Like the AVGN would say, What the F**K were they thinking!?
spythere says:
Kung sino man sa mga Police Supt.ang nag apply ng search warrant hala lagot ka, mag lagay ka na ng karton sa pwet at sigurado palo ka kay judge.
spythere says:
CIDG Didnt investigate well or lack of experience they should study well first the case background before applying search warrant, kaya ayan nag kanda leche leche na ang pina lalabas na violation, napunta sa smuggling case. he,he cidg kayo hindi kayo anti-smuggling ng Bureau of Customs.
Rey says:
I’ll probably won’t be buying and 2ksport game unless 2ksport revokes exclusive distribution from x-play.
Sa mga circle of friends ko, hinde na rin sila bibili ng games by 2ksports hanggang hinde malugi ung x-play.
FHU Jóskowski says:
It’s awesome to pay a visit this web site and reading the views of all colleagues concerning this article, while I am also zealous of getting knowledge.
Melvin Ryan Fetalver says:
I agree that exclusive software distribution particularly in gaming is not a viable model not just here in the Philippines but globally. If you notice the trends, with Steam and Blizzard going for online downloads of games. It’s cheaper because you do not spend on imports, CD’s, Manuals, Cases. Etc. And it’s easier to sell also. Overall that is the trend. So XPLAY making a big fuss about this fiasco, was not only an over reaction. But was very very poorly executed. It did them more harm than good from a PR standpoint.
rotero says:
so its like SALES CHANNELING ….
We Support Datablitz says:
The real lesson here is exclusive distribution for traditional retail games is not a viable business model in the Philippines. There have been three (3) ventures for such:
1.) AMDG – Vivendi (CS, Diablo 2, Warcraft 3, and a buttload of other Vivendi games) + Guildwars
2.) IAH Philippines – Starcraft 2
3.) E-Games – Diablo 3
And we will call the fourth X-Play – 2K13, soon.
All three of the above mentioned companies do not exist anymore. E-Games technically became X-Play but the point is their business case ultimately failed.
Exclusive distribution should at least provide consumers with extra value by means of DLC, premium merchandise per purchase, after-sales support, or even an official ranked server or something. If exclusive distributors want to place premiums on their goods, by all means, justify them.
Where is the extra value of X-Play 2K13s? In a raffle? People would have wanted the game with or without the raffle. People would have wanted the game with or without X-Play’s “marketing”. But most of all, people would have gotten the game with or without X-Play’s exclusive distributorship.
X-Play, why even bother?
Frhw says:
Ano ang case laban sa kanila if original ang copy at ibinabayad ng custom tax?kung smuggle yon malinaw may kaso sila.
We are in the mktg. business at may mga product kaming ibinebenta as distributor but mostly hindi na nagoofer ng exclusive distributorship ang mga
Supplier abroad kundi authorized distributorship means more than 1 ang pwedeng magbenta na company dito.wise na ngayon ang mga brand owner kasi the more na mas maraming distributor mas malaki benta nila
fireice2 says:
CIDG is the most corrupt law enforcement agency. Malaki bayad kaya nagraraid, or magraraid kasi hindi binayaran.
We almost conducted an entrapment operation against elements of the CIDG before for extortion. They were lucky the NBI had no spare operatives on that day to conduct an impromptu bust.
If this was a customs case, they have no jurisdiction.
TheWatcher says:
Datablitz is in the clear. They are retailers, not distributors. They buy original products from overseas distributors, then resell the products here. This is parallel importation, or what some may call the gray market. Note that it is called the gray market and not the black market. This is because it is NOT ILLEGAL. There are no laws in the Philippines preventing someone from selling something that has been legally purchased. The Hidalgo camera shops would have been closed long, long ago if this were the case.
This is why X-Play is shifting gears and trying to claim that Datablitz is smuggling the games in. All Datablitz needs to show is that they have paid the appropriate duties.
Like some other posters, I am also calling for Yuga to update the article to note his relationship to GMA-7, the owner of X-Play. It doesn’t matter if he wrote this article without any involvement from GMA or X-Play. It is simply good journalism to do so.
XPLAYSUKS says:
unfair competition?
– kasi mahal benta namin kaya dapat mahal din benta niyo.
presyo ng 2K13 PC
DataBlitz = P1295
play-asia = $28.69 = P1181 (free s/h to phil)
amazon = $28.24 = P1163
EBGames = $29.99 = P1234
Walmart = $29.96 = P1234
X-Play = P1995
toinks!!!
unauthorized dealership?
– san nakalagay na sila ang “exclusive” note the word “exclusive”. sila ang official yes, pero not exclusive.
so ano basis nung search warrant? ang unang binalita nila “piracy”, then they changed it to “unauthorized selling”, they changed it again to “smuggling”.
now pano yung mga employees?
– illegal detention?
sabi nila they have no hand sa CIDG raid.
– sino niloko nila? nandun mga lawyers sila supervising the raid!
GMA/X-Play/philstar partnership
– hindi nakalagay sa GMA news na partner nila ang X-Play nung naglabas sila ng article.
pronoob says:
yan ang serbisyong totoo ng GMA. and don’t they ever tell us that they “forgot” to declare it kasi kung ganun, kalimutan na rin lang nila magbalita
also sa mga alipores ng “eXPlay”, pakisabi sa kanila to close out their loophole. In their website, they did not explicitly declare that they are the “exclusive” distributor of Take Two Interactive. They did that for Blizzard so what are they waiting for? A nod from Take Two? yeah right
JK says:
Even if 2k / Take-Two has given X-Play right to distribute, why have we at no point so far in this controversy heard anything from the DTI? This entire thing falls in their jurisdiction – and indeed, THEY should be the ones who need to say “X-Play is the exclusive distributor of 2K Sports SKU’s”
If that is the case then yes, perhaps DB was in the wrong – but at the end of the day, the whole thing just hurts the gaming community just to protect a business whose strategy was flawed from the very beginning by not understanding the dynamics of the industry.
roiji says:
eh kung minumurahan ba naman ng mga local exclusive distributors yung mga prices nila edi sana walang magiimport mula sa ibang bansa!!
quoquota naman ang xplay pag mura yung game di ba… actually, mas quoquota pa sila..
bakit naman kasi nag-aagree pa tong mga exclusive distributor na ito na hindi maging competitive and price nila against imported goods. (competitive as in mas mura, hindi competitive para maging mahal)
antinoob says:
all those who are defending datablitz are complete and utter idiots; reacting first without looking at the bigger picture. “Grow the Fuck up pls”
pronoob says:
eh ikaw nag grow up ka ba? what’s your f****ing point anyway?
dukhatmaralita says:
xplay nba2k13 = 5k
db nba2k13 = 2k
2k for 2k products
Amado says:
@dukha, taga db ka siguro. Nagkakalst ka kasi ng false info. San ka nakakita na P5k ang presyo ng 2k13?
dukhatmaralita@yahoo says:
xplay nba2k13 = php5k
db nba2k13 = 2k
nuff said db wins
La+ says:
May masabi lang? Kulit, hindi nga copyright o piracy and issue. Ang issue ay Unfair Competition at unauthorized delearship.
dimaalintala says:
unfair competition?
– kasi mahal benta namin kaya dapat mahal din benta niyo.
presyo ng 2K13 PC
DataBlitz = P1295
play-asia = $28.69 = P1181 (free s/h to phil)
amazon = $28.24 = P1163
EBGames = $29.99 = P1234
Walmart = $29.96 = P1234
X-Play = P1995
toinks!!!
unauthorized dealership?
– san nakalagay na sila ang “exclusive” note the word “exclusive”. sila ang official yes, pero not exclusive.
so ano basis nung search warrant? ang unang binalita nila “piracy”, then they changed it to “unauthorized selling”, they changed it again to “smuggling”.
now pano yung mga employees?
– illegal detention?
sabi nila they have no hand sa CIDG raid.
– sino niloko nila? nandun mga lawyers sila supervising the raid!
GMA/X-Play/philstar partnership
– hindi nakalagay sa GMA news na partner nila ang X-Play nung naglabas sila ng article.
fireice2 says:
If this was a copyright case, the Publisher or Developer has the right to sue DB. X-play does not own the copyright or intellectual property, thus no legal personality to sue based on a copyright.
fireice2 says:
Last time I checked,a third party cannot be bound by a contract he is not privy to.
JC John Sese Cuneta says:
Copyright issue or not, it doesn’t matter. Do you even know if their contract with the IP owner includes going after unauthorized distributors?
And whether it includes that or not, there are many ways and reasons that can be used to go after unlicensed sellers.
La+ says:
IF this is a copyright case, which it is NOT. SO HUSH.
Jason Ryan Celeste says:
http://goo.gl/KX4pi
A similar case involving Cuban Cigarettes.
Complainant won.
Jason Ryan Celeste says:
http://www.apeccp.org.tw/doc/Philippines/Case/phcas05.htm
A similar case involving Cuban Cigarettes. Complainant won.
cindy says:
let us boycott xplay.
anarchist says:
i don’t like this kind of articles that seems to justify xplay’s actions…
pao says:
piracy ba kamo?!
eh yung mga stores na ni-di-distributor ni X-play may pirated games din sila(xbox360, pc, wii, ds, psp, JB ps3’s)
tsk..tsk
Barry says:
Hindi nga piracy ang issue bro. It was already clarified na unauthorized distributorship.
Yikes... says:
Businessmen should already know that in battles like this, the consumers will favor / side the one who’s not jacking up prices. Consumers hate monopoly.
X-Play may win sa korte, pero bad puclicity rin sa kanila ito.
kazu says:
So dapat pala pati mga online stores na nagbebenta ng mga grey units ay dapat e raid since most of the brands they carry has a licensed distributor here in PH
Tim says:
Maybe game publishers should avoid exclusivity when it comes to distribution to one country. It’s very unhealthy.
max says:
yup.. I remember Canon Phils. filed a complaint against Kimstore a few years back. This is why you won’t see Canon products in Kimstore’s multiply site. Personally, I think the raid was overkill. If Xplay is indeed the exclusive distributor, it is within their rights to file the complaint/case. Datablitz has the right to countersue and file for damages. It’s a court case now so let the courts settle it.
psikick says:
yup… I remember Canon Phils. filed a complaint against Kimstore a few years back… This is why you do not see Canon cams in Kimstore’s Multiply site… Personally I see the raid as overkill, but if XPlay is really the exclusve distributor, they are within their rights to file the complaint/case. Datablitz on the otherhand, has the right to countersue. It is now a court case, so I say let the courts settle it.
Abe Olandres says:
Actually, there have been similar incidents before involving online sellers from Multiply. They were not as well publicized lang as this one.
Ramon says:
Very informative (both the article and the comments) :)
I can’t help but agree with the majority here, x-play overreacted ALOT and even GMA seems to be helping by falsely claiming that DB sold “pirated” units….seriously, they’re doing more harm than good
I’m using licensed games now because of datablitz! And now they’re trying to discredit them just because DB didn’t buy all of their copies from x-play >_>
Xplay may have the right to sue DB but they made the mistake of publicly attacking DB rather than settling it like mature businessmen, the whole thing already blew up at their face, let’s just hope this never happens again…
Going Legit says:
Thanks for shedding some light into this issue sir Abe. I think some of us may have missed the point here, and I say us because that includes myself. Now things are much clearer and Xplay was merely claiming what was rightfully theirs. Unfortunately some people are still insisting on X-Play initiating the raid??? If you read this article thoroughly you will see that X-Play merely filed a complaint to the proper authorities which I think is the proper thing for a business. If they were indeed bullies they could have just probably had the owner beat up or threatened but instead they went through the proper channels.
tipler says:
You should disclose that you’ve written for GMA. It partly owns XPlay after all.
tipler says:
Maybe you should disclose that you write/have written for GMA.
Since it partly owns XPlay.
tipler says:
I guess that doesn’t warrant disclosure then?
http://www.yugatech.com/site-updates/you-can-now-find-us-over-at-gmanews-tv/
Anyway I just wanted to mention it since you don’t cite sources on your article.
Abe Olandres says:
Sorry I now realize what you were imputing. I actually did not know that GMA7 is a part owner of XPlay when I wrote this article.
Abe Olandres says:
Didn’t see any relevance since it is a favor I give to GMA7, I am not compensated by them and I am the one giving the compensation via the free articles.
Abe Olandres says:
I don’t write for GMA 7. My reviews are syndicated by them. No original articles, just republished gadget reviews.
However, I do write for Interaskyon, a subsidiary of TV5.
francis820 says:
Good insights, Sir Abe. I never thought that iPhone analogy until now which gave me a different perspective on this brouhaha… it’s just that the events of Nov. 5 was just plain nasty, not to mention overkill. Na-raid ka na, napahiya ka pa (courtesy of GMA and Phil. Star), kinulong ka pa… which explains the local gaming community’s sympathy towards DataBlitz (myself included). Also, I find XPlay and CIDG’s statements inconsistent from Nov. 5 until yesterday, so if they’re trying to convince the public, they’re doing a bad job at it.
Cindy says:
Whatever the agreement between the developer and Xplay is, it does not bound other retailers or end users to it. Xplay maybe the exclusive distributor here in the Philippines, but it does not mean that all Filipinos should buy from them. It simply means that the developer cannot sell to any other Philippine Distributor.
Sad to say, many businessmen wants easy money by wanting a monopoly and jacking up the prices.
Ganyan ang nangyari dati sa mga gamot. ang presyo sa Pilipinas ay 10x ng presyo sa ibang bansa. At ang gusto ng mga multinational ay hindi pwedeng bumili sa ibang bansa ang Pilipinas. Gusto nilang pagkakwartahan ng malaki ang mga Pilipino.
Monopoly na nga ang Kuryente, Tubig, Expressways etc(kung kaya’t napakamahal), pati ba naman games, gusto monopoly pa rin.
Hindi ito dapat tinotolerate ng pamahalaan.
dapat ay free enterprise at walang restriction of trade, dahil ito ang makakabuti sa consumers.
JC John Sese Cuneta says:
No one said that gamers should only buy from X-Play and their partners ;) The issue is DB, not where the gamers are getting their copies. ^_^
I can choose to buy NBA2k13 in the US or Singapore or Australia and bring it back here in the Philippines. But not to resell or distribute it.
Two different things. Let’s not mix them up.
jeff says:
My PS3 NBA2k13 came from DB w/o xplay sticker, meaning my copy is “Illegal”? Hwaw
JC John Sese Cuneta says:
No. I do not know where people are getting that concept from.
The issue is NOT about where gamers bought their copies but with DataBlitz selling copies that did not come from the official/licensed Philippine distributor, which in this case, is X-Play.
I’m not defending X-Play and I’m not attacking DB. I just don’t know where people are getting the concept that the issue is about where gamers got their copies from.
Maize Maze says:
From this article: http://technology.inquirer.net/20076/cidg-seizes-p2-7-m-smuggled-games-software
Sosa said the operation stemmed from the complaint of Jose Enrico Demetrio Dingle, Head of Security of IPVG, owner of X-Play Online Games Inc.
Search for the name “Jose Enrico Demetrio Dingle” and you will find that he was a former 1st lieutenant of the Rangers, and was part of the Oakwood mutiny.
Somebody is definitely pulling the strings here. Connections, connections, connections.
* Credit goes to PhilMUG user who actually researched this.
maize says:
^ From this article: http://technology.inquirer.net/20076/cidg-seizes-p2-7-m-smuggled-games-software
Sosa said the operation stemmed from the complaint of Jose Enrico Demetrio Dingle, Head of Security of IPVG, owner of X-Play Online Games Inc.
Google “Jose Enrico Demetrio Dingle” and you will find that he was a former 1st lieutenant of the Rangers, and was part of the Oakwood mutiny.
Somebody is definitely pulling the strings here. Connections, connections, connections.
* Credit goes to PhilMUG user who actually researched this.
qwerty says:
^ From this article: http://technology.inquirer.net/20076/cidg-seizes-p2-7-m-smuggled-games-software
Sosa said the operation stemmed from the complaint of Jose Enrico Demetrio Dingle, Head of Security of IPVG, owner of X-Play Online Games Inc.
Google “Jose Enrico Demetrio Dingle” and you will find that he was a former 1st lieutenant of the Rangers, and was part of the Oakwood mutiny.
Somebody is definitely pulling the strings here. Connections, connections, connections.
* Credit goes to PhilMUG user who actually researched this.
John says:
yuga = gma7 = xplay
so…
you know na
YUGYUGAN NA says:
HALATANG BIAS ANG ARTICLE NA TO. BAKIT? KASI YUGATECH = GMA7 = X-PLAY.
TSK TSK TSK. SABLAY.
eco says:
Sa ibang bansa kadalasan ay bumababa ang presyo ng isang produkto kapag may “official distributor” dito sa bansa natin kadalasan ay tumaas pa ang presyo ng produkto. Karamihan kasi gusto imonopolize para kumita ng malaki, kawawa ang mga consumers katulad natin.
jtkings says:
I think it should not have led to this. Datablitz has been in the business for so long and their name got tainted just because of, well, maybe miscommunication.
IMHO, it seemed like harrasment and a desperate move from a new player like X-Play.
Anyway, it will be up to the consumers to buy things where ever they want to.
Abiel says:
Just want to add to what sir yuga said about “There are a few things a distributor can do from this point on:”
* They can contact potential customer/partners and say “We are the exclusive distributor of “this” and “that” in PH. Either work with us or face the consequences”
Which I think DB will be more than willing to work with them and in turn a win-win situation for both company, specially with DB reputation as a game retailer.
This is also a sticky situation for Xplay, what if DB have a contract with another distributor from another country? Since XPlay did not specifically say that they’re the exclusive distributor of NBA 2K13 (that’s according to DB) then I don’t think DB have any responsibility to commit in getting their stocks from Xplay.
Also regarding GMA and Xplay — talk about conflict of interest! They should have at least tell viewers their affiliation with Xplay.
JC John Sese Cuneta says:
If DB ever got an exclusive license, they will announce it for sure. And for titles like NBA2k13, it will ring loud and clear. Secondly, it is highly doubtful that some distributor from another country granted DB a license in the Philippines because:
#1: Only the owner can grant distribution licenses
#2: No distributor will break their distribution contract with the product’s owner (if you are not aware, some of the games I bought were not easy to get because the developers specifically asked distributors in the US, EU, Australia, etc. to make sure it is local and an individual)
#3: If there is a regional licensed distributor which includes the Philippines before X-Play was awarded exclusivity, more likely than not it was settled already, hence, X-Play holding the license to distribute and market in the country, and no one else.
I am not defending X-Play and I am not saying that DB deserves it. Just like everyone else, I bought and buy games from them. But if you’ve work or is working in the industry, you know how these things work.
Yes, Abe is right that distributorship is a tricky and risky business. Personally, if I’m distributing products that one day have a licensed distributor from where I’m selling, I’ll stop first and talk to them to clarify things. We’re not talking about “who should make the first move” or “the licensed distributor should reach out”, protecting your own business is top priority.
Take for example, Anime fansubs. It has become an unwritten agreement between licensed distributors and fansubbers that once an anime and manga title gets an official distributor in the US, all fansubs and fantranslations should stop. Some groups even tries to offer their services, some got lucky.
It’s no different in game distribution. Yes, even those with “online” stores and affiliate links.
Let the court decide, no need to blow it up. Just watch how it goes and learn from it. Who knows, you might land in a distributorship job in the future.
tony says:
distributor= selling to retailers
datablitz is selling copies to end consumers, not retailers. If datablitz is selling to other retailers, then xplay is in the right. But no.
JP says:
Had I known the 2k13 shipped with securom DRM-d disc, I would’ve never bought from either stores.
Do yourself a favor, buy Steam.
ben says:
we should welcome parallel imports becuase it is a way to kwwp pricea reasonable. it is a form of protection from overpricing being done by some diatributora. if xplay wants datablitz and other retailers to purchase from them then they ahould have priced their products competitively.
garz says:
Somebody’s pulling the strings here and it’s heavily favoring XPlay. It’s like Apple suing Samsung for a patent that was just granted to them. And I am 100% sure DataBlitz doesn’t sell pirated copies.
Mike says:
Somebody is definitely pulling the strings here. Connections, connections, connections.
From this article*: http://technology.inquirer.net/20076/cidg-seizes-p2-7-m-smuggled-games-software
Sosa said the operation stemmed from the complaint of Jose Enrico Demetrio Dingle, Head of Security of IPVG, owner of X-Play Online Games Inc.
Google “Jose Enrico Demetrio Dingle” and you will find that he was a former 1st lieutenant of the Rangers, and was part of the Oakwood mutiny.
* Credit goes to PhilMUG user who actually researched this.
Andre says:
define pirated
defined unauthorized
define corrupt
Dhan says:
I’ll take side with Datablitz, simply because all of my physical original games came from them, I’ve been buying from them for years and not once have I encountered any so-called pirated copies.
These X-play folks are just remnants of E-games trying to make a name. Epic-Suicide-style I say.
The media should get their facts straight.
benchmark says:
ngayon ko lang nalaman ito ha.
Anyway I am just wondering, kung anung kaso kaya pede mabigay sa mga grey unit sellers. I mean, they pay costom tax for imports naman din siguro, hinde naman pirated yung mga inimport nila.
I’ve been in sales before, alam ko yung ang risk lang talaga if exlcusive distributor ka, na still people has a choice to buy from other country nga naman, and sometimes it is cheaper, than here.
Wala lang, napaisip lang ako sa situation na ganyan.
deuts says:
I bought my NBA 2K13 title from Datablitz. As a consumer, I’m always concerned about getting the best value for my money. Wherever I can get the cheapest price for the same title, I’ll definitely get it there.
Whether Datablitz breached a contract, if there was any to start with, or violated a law, well I already got my title anyway. But I think we also have to take into account what really was the basis for the judge’s issuance of such warrant?
Jonathan Cordova says:
X-Play could have warned Datablitz beforehand of the consequences IF they are really the exclusive distributor. And show Datablitz their exclusivity. Datablitz being the premier video game retailer. It was a business that Datablitz created. Without them, we’d be all playing pirated games.
The way the raid was conducted was heavy-handed. And the changing reason put forward, shows that they are desperate, and throwing anything and everything to show whatever sticks.
As for exclusivity, that’s one bad law we had here, that is why we pay much more for our gadgets that more affluent countries. The winner’s are are the oligarch who control the brands, while the masses toil for them.
Iyan Sommerset says:
Download. Problem solved. :P
really now yuga? says:
do you think what X-Play did was overkill? why raid the whole store (plus main office and other branches), when they could just ask DB to pullout the affected games? first they (GMA7, partner of X-Play) told the public that Datablitz was selling “pirated goods” hence the raid. next they changed it to “unauthorized reselling”. now they’re saying “smuggled goods” which is it really? ano nakalagay na reason sa search warrant? at meron ba silang arrest warrant para sa mga empleyado ng DB? that’s illegal detention. tapos ngayon sinasabi nila na they have no “hand” sa raid? what?! you have X-Play representatives when the CIDG conducted the raid! now i really doubt this “exclusive distribution” that they have. ang tagal nang nagbebenta ng 2k games ang DB. ang X-Play ngayon taon lang. they have what? 3 games? (D3, MOP, 2K13) D3 from the now defunct E-Games.
Mike M says:
Afaik,distributorship is different from being a retailer. To what I know, Datablitz is a retailer (hence, they sell to the retail market), while X-Play is the distributor (hence, they distribute to other retailers for the latter to sell to consumers)
As X-Play “IS” the legitimate and exclusive distributor in the Philippines, Datablitz never claimed to be a “distributor” of any sorts. Datablitz is still a “retailer” and does have the right to choose where and whom to get it from. Datablitz got units from a different distributor but still thru legal means, and all the units they got are legitimate. If there should be X-Play would target, it is to stop distributors from other countries to supply to retailers from another country. Which makes sense.
What’s funny is that this kind of incident is very very common in the IT business. So what legitimate distributors do to battle grey units is make gimmicks to entice local sale (usually by rebates, or 10+1, or anything else) or provide incredible tech assistance. I’m pretty sure Sir Abe knows this.
Anyway, when all things are settled, the one who’ll be really hurting is X-Play. Basically they just murdered their #1 client in the Philippines, and this also sets the tone that would scare of other retailers and other would-be retailers. It’ll be hard to gain the respect and trust of other retailers again. Unlike Datablitz who already established themselves.
GL to X-Play for this ball-sy move. :P
Mike M says:
Afaik,distributorship is different from being a retailer. To what I know, Datablitz is a retailer (hence, they sell to the retail market), while X-Play is the distributor (hence, they distribute to other retailers for the latter to sell to consumers)
As X-Play “IS” the legitimate and exclusive distributor in the Philippines, Datablitz never claimed to be a “distributor” of any sorts. Datablitz is still a “retailer” and does have the right to choose where and whom to get it from. Datablitz got units from a different distributor but still thru legal means, and all the units they got are legitimate. If there should be X-Play would target, it is to stop distributors from other countries to supply to retailers from another country. Which makes sense.
What’s funny is that this kind of incident is very very common in the IT business. So what legitimate distributors do to battle grey units is make gimmicks to entice local sale (usually by rebates, or 10+1, or anything else) or provide incredible tech assistance. I’m pretty sure Sir Abe knows this.
Anyway, when all things are settled, the one who’ll be really hurting is X-Play. Basically they just murdered their #1 client in the Philippines, and this also sets the tone that would scare of other retailers and other would-be retailers. It’ll be hard to gain the respect and trust of other retailers again. Unlike Datablitz who already established themselves.
GL to X-Play for that ball-sy move. :P
nameless says:
Exclusive distributorship sucks. This is just like monopoly.
vince says:
speculation: GMA news deliberately used the word “p*****d” and/or “fake” in their news reports about the raid because GMA is affiliated with xplay so this was a plot to mudsling datablitz so that xplay would get more sales
yeah its only speculation, BUT
FACT: GMA afaik never made the disclaimer in its news reports that it was affiliated with xplay. Delicadeza anyone?
enrico says:
@devilsadvocateph
kung nasubaybayan mo mula sa umpisa ang mga pangyayari, malalaman mo na hindi iyan ang unang article na nilabas ng GMA7. ang sabi pa nga dun sa orihinal na article ay may mga nakumpiskang mga “fake” na softwares sa Datablitz.
devilsadvocateph says:
you should have checked your sources first before you speculated.
http://www.gmanetwork.com/news/story/281567/scitech/gaming/x-play-clarifies-stand-on-nba2k13-case
the article was posted last night at 9:43pm. your comment was posted 11:45pm. so your “factual” info that GMA never made a disclaimer is absolutely fictitious.
vince says:
speculation: GMA news deliberately used the word “pirated” and/or “fake” in their news reports about the raid because GMA is affiliated with xplay so this was a plot to mudsling datablitz so that xplay would get more sales
yeah its only speculation, BUT
FACT: GMA afaik never made the disclaimer in its news reports that it was affiliated with xplay. Delicadeza anyone?
Timothy says:
From what you explained so far, XPlay does seem to have a good reason on why they sued Datablitz. I understand that Datablitz has some following (including myself) and fans can easily get emotional over it. Your analogy on the iPhone distribution pretty much explains it, if it does in-fact apply in this case.
I only wonder if they could’ve settled this in some peaceful manner and stop acting like crybabies. XPlay could’ve simply walked to Datablitz and say: “hey look, you can’t continue selling it like this because this puts us on a very bad position”.
The raid somehow made Datablitz look bad, and so the impression that XPlay had more than something other than protecting their interest.
Peter says:
But the question is…. is XPLAY really the exclusive distributor? Di ba parang monopolization un if ever?
JC John Sese Cuneta says:
Well, obviously the answer there is ‘yes’.
They wouldn’t go after DB if they do not have the license as the exclusive distributor in the Philippines. And of course, X-Play will not show the agreement in public because there are other details there that should remain confidential.
If it blows over in court, they may show that license but never to the public, again because of confidential details. It’s business. And that’s how country and regional licensing works.
Tim says:
From what you explained so far, XPlay does seem to have a good reason on why they sued Datablitz. I understand that Datablitz has some following (including myself) and fans can easily get emotional over it.
Your analogy on the iPhone distribution pretty much explains it, if it does in-fact apply in this case.
I only wonder if they could’ve settled this in some peaceful manner and stop acting like crybabies. XPlay could’ve simply walked to Datablitz and say, hey look, you can’t continue selling it like this because this puts us on a very bad position. The raid somehow made Datablitz look bad, and so the impression that XPlay had more than something other than protecting their business.
La+ says:
This news was featured on the Inquirer a couple of days ago. And it said there that top people from X-play had a meeting with the owners of Datablitz, doesn’t specifically stated what happened with the meeting but guessing from the raid, the meeting maybe a failure.
Bingo says:
Lakas ng loob ng xplay. baguhan pa nga lang sila, desperado na sa pera.
DataBlitz 17 years na sa industry, ibig sabihin trusted at verified na original. hinding hindi ako bibili diyan sa xplay.
p.s. wag kayong bumili ng nba, mas enjoy FIFA!
Ryan says:
Fifa? mas ok pa super mario bros kesa yan laruin ko. NBA2k13 is the sickest hoop game there is. at the moment. :)
fireice2 says:
There are no laws making parallel importation illegal.
Pharma companies sued the Republic before when the Gov’t purchased cheap medicines from India for local distribution. It did not prosper.
pong says:
that is right there is no laws for parallel importation. Datablitz did nothing wrong. Xplay doesn’t own the licsense all they own is the exclusive distributor contract. As long as you declare and pay taxes at the customs it is not illegal.
The copies are original and has not been replicated by Datablitz so there is no copyright infringement.
pong says:
If Datablitz is selling an original copy it’s not IP because they don’t reproduce the game. about the license it is not infringed because xplay doesn’t own the license they just distribute it. Datablitz did nothing wrong. Exlusive distributorship is a contract between the seller and the buyer and not with the state. As long as datablitz paid for the taxes related with the importation it is not illegal. There is no law that only a sole distributor can sell a specific product.
Abe Olandres says:
I think it’s the basis was not about parallel importing. It’s more like Intellectual Property. 2K Sports may have given IP license to X-Play to distribute NBA 2K13 in the PH. So it’s possible it’s a copyright issue — DataBlitz selling PH unlicensed copies of a game.