X-Play had nothing to do with DataBlitz raid: sources

MANILA, Philippines – After gaming store chain DataBlitz cried foul over the alleged “harassment” by X-Play Online Games Inc., sources from the software distributor claimed that they did not ask the police to raid the retailer’s branches.

The sources, who requested not to be named, on Wednesday night explained to select media that all X-Play did was file a complaint with the Makati Regional Trial Court citing “unfair competition” after they discovered that DataBlitz was selling “unauthorized” copies of the NBA 2K13 video game at lower prices.

X-Play is the exclusive distributor of NBA 2K13 in the Philippines.

[Image: N/A. Text: Copies of the sports video game "NBA 2K13" were seized from DataBlitz stores last Monday. File photo]

The X-Play source said they did not expect that the Philippine National Police’s Criminal Investigation and Detection Group (CIDG) would conduct a raid on DataBlitz stores.

"It’s not for me to second-guess the practices of our authorities. I don’t think anyone, not even me, can tell the police what to do. We just filed a complaint," one of the sources said, adding that the company, in its complaint, only sought that a fine be imposed on the local gaming store chain.

"I wanted it resolved. We wanted it proven beyond reasonable doubt by the justice system that they were in fact undergoing illegal activities," the source explained.

The source went on to say that X-Play also did not intend to have the employees of DataBlitz arrested during last Monday's raid.

"I think it’s very unfortunate. We filed the complaint to CIDG. I don’t know how they conduct their investigations or what they do with their arrests. I’m not privy to those types of actions. But I do sympathize with them (employees). If they were held unnecessarily, that shouldn’t be the case. I don’t want anybody hassled, held up, violated of their rights, under any circumstance whether it’s for us or what not," the source explained, saying he was not happy with what happened.

"Honestly no, I’m not happy that this happened. Really. I can’t directly look at that as a win kasi that shouldn’t have happened in the first place...I don’t think anybody should be celebrating, especially us," the source said.

While it washed its hands off the raid and the ruckus caused by it, X-Play reiterated that DataBlitz was wrong in selling “unauthorized” copies of the basketball video game at lower prices.

According to the other source, DataBlitz began selling "unauthorized" copies of the sports video game on the day NBA 2K13 was launched in the country last month -- and just one day after X-Play delivered to DataBlitz the marketing collaterals for the game.

"During the press con, that was the same time that we knew about this. At 10 a.m. papunta na ako sa press launch, nagtatawagan na, the distributors were so mad. We were trying to appease them," the other source said.

‘Harassment’

On Wednesday, DataBlitz slammed X-Play for “initiating a disgraceful harassment action,” citing the recent raid of its stores. The gaming store chain also stressed that X-Play “has never indicated in any form of writing or communications whatsoever that they are the exclusive distributor of the game.”

X-Play, however, insisted that DataBlitz knew that it was the exclusive distributor.

"I was there when it was announced to them that X-Play was the exclusive distributor," one of the sources said, citing a meeting in September at the New World Hotel in Makati.

"They were critical to the price points because they are the biggest retailer. They agreed to the price points. They were there every step in the way," the source continued.

The sources conceded, however, that there was no written document of X-Play's supposed partnership with DataBlitz. "Sometimes a handshake is more important. In hindsight, it’s a learning experience," the source said.

As DataBlitz justified its move to sell copies of the game sourced from other companies, the retailer said it still bought “a considerable quantity” of “NBA 2K13” stocks from X-Play.

“It is the understanding of DataBlitz that X-Play is another reseller of the game, and as we still live in a free country the last time we checked, DataBlitz reserves its right to buy stocks of the game from other sources, apart from X-Play, so long as these are legitimate, genuine, brand new, original games, that are and always have been the hallmark of our product offerings to our customers,” the gaming store chain said in a statement posted on its Facebook page.

But while X-Play "commends" DataBlitz for fighting piracy, the source said: "I make no distinction for unauthorized copies, smuggled copies and pirated copies. Illegal is illegal is illegal."

"What pains us, and what saddens us, is that all throughout, from the very beginning all the way up to the last few days before the launch, we were in constant discussions on how to introduce this to the market, on everything – distribution, marketing, strategies, price points, long term, short term -- and parang we feel that we’d been had. Kasi, you don’t order it in three days. You order it 30 days before. So to us that was very clear.

"We will fight this. This will be our advocacy. You need to conduct your business legally, properly, no ifs, no buts. There is no wiggling out of that way of conducting your business. There’s no reason whatsoever, whether it’s a consumer reason, a marketing reason or a P&L reason. It doesn’t justify your cheating. And we will fight this to the end," the source stressed.

‘Not pirated, smuggled’

On Thursday, DataBlitz posted another message to its patrons on Facebook, maintaining that it never sold pirated nor smuggled goods.

“We wish to further dispel the false news reports that have circulated in the past few days. The seized NBA 2K13 stocks are not pirated nor smuggled goods. DataBlitz has never sold any pirated games, not then, not now and not ever. The games are genuine, original stocks that came from legitimate suppliers, and had gone through the proper importation channels with taxes and duties properly paid.

“The basis and reason for the seizure of the goods was that these were allegedly ‘unauthorized’ stocks, without X-Play stickers.”

DataBlitz added that it will contest the “unauthorized” stocks issue “in the proper fora in due time.”

“Meanwhile, from the bottom of our hearts, a million billion gazillion thanks for the outpouring of support we’ve received from our beloved gaming community and from gamers in general everywhere,” said the gaming store chain, which has been in the industry for over 17 years.

X-Play, for its part, is also confident that that "justice will prevail."

"We were compelled to just have this dealt with by the proper authorities rather than doing this on our own. We already felt betrayed. We did talk to them. After that, what’s the point of discussing it in good faith when we were in good faith all along and they weren’t. We felt the proper authorities or the proper forum was required for this already, which is the courts and the CIDG," the source said when asked if it tried to settle the issue with DataBlitz before filing the complaint.

"We don’t have any grudge that we hold against DataBlitz but we don’t want this to happen again. We want this to go through the proper course, through the proper channels, and the proper forum, and resolved. We really want this resolved."