It’s been a couple of months since NZXT started its Flex subscription service for renting gaming desktop PCs. Even at launch, the proposition was clearly not nice when it comes to worth… however that’s par for the course for any sort of rental, whether or not it’s an residence or an armchair.
However YouTube channel GamersNexus carried out a deep investigative dive into this system — and located some stunning outcomes.
In brief, GamersNexus accuses NZXT of working a full-on rip-off, profiting from those that can’t afford to purchase (and even borrow-and-buy) a full-power gaming PC. The hour-long report paperwork skewed worth propositions that have you ever paying greater than 5 instances the value of a gaming PC in “small” month-to-month rental expenses over 5 years, for a machine that you simply by no means truly personal. NZXT Flex is a “subscription,” not a rent-to-own program.
That’s probably not stunning for a rental program. That’s how renting works, in spite of everything. Again within the day, you possibly can “rent” a VHS from Blockbuster 4 instances in a row, and after a month you’d have spent simply as a lot on rental charges as you’d have when you’d simply purchased the tape outright.
However GamersNexus breaks down simply how dangerous NZXT’s deal is in comparison with different choices for high-priced purchases.
For a $3,000 pre-built gaming PC, GamersNexus calculates that you possibly can get a pay-per-month mortgage from Affirm Credit score (a well-liked choice even for these with out easy accessibility to bank cards) with a comparatively excessive 22 p.c rate of interest and pay solely $369 further after one 12 months. Even when you obtained a private mortgage at 36 p.c — the utmost for an under-$10,000 mortgage in most US states, past which you enter “loan shark” territory — you’d pay $6,504, which is greater than double the worth of the PC.
After which you’ve got NZXT Flex, which, in response to GamersNexus, is equal to a 103 p.c rate of interest over 5 years with a last worth of $15,504… for a pc you by no means personal. That’s a horrible deal. However simply because it’s a foul worth doesn’t essentially make it a rip-off.
To raise these expenses, GamersNexus highlights sure “predatory” actions, together with: swapping out the elements on Flex rental PCs versus equal pre-built packages with out adequately adjusting the outline (or the PC’s projected efficiency); writing spurious and unenforceable phrases into the rental contract; and working sponsored posts on YouTube and different social media with blatantly false claims, a few of which goal kids as potential prospects.
One instance of social media advertising caught out to me. “You could literally get one of these PCs for one month and then win a Fortnite tournament or something, and have enough money to buy your own PC,” says TikTok and Instagram channel BlipTech, clipped within the report.
When you’re an grownup, hopefully I don’t should inform you that spending an exorbitant amount of cash to lease {hardware} within the hopes of successful a paid gaming event is a foul concept. However when you’re a baby, please learn that once more: Spending cash to lease {hardware} within the hopes of successful a paid gaming event is a dangerous concept.
The total, exhaustive report — together with potential motivations for the corporate’s change in route, monetary breakdowns from a banker, and an interview with an lawyer — is properly value a watch. GamersNexus offers NZXT a backhanded award for its practices, and says it’s going to now not settle for sponsorships or promoting from the corporate.
Replace: On Tuesday, NZXT issued a press launch and video addressing the factors in GamersNexus’ report, with out explicitly mentioning it. “We messed up,” mentioned CEO Johnny Hou, particularly on confusion created by important half variations between the usual pre-built desktops and Flex desktops with the identical product names.
Hou and the press launch additionally acknowledge that advert campaigns created in partnership with influencers had been “not factual… calling out ownership when it really is a rental program.” NZXT says its accomplice campaigns for Flex leases have all been pulled down. NZXT additionally categorically denied that it retained consumer knowledge from PCs, regardless of that being a chance within the rental contract as GamersNexus famous, saying that it wipes the arduous drive of each rental PC that’s returned. The authorized language is being adjusted to spell out that NZXT can’t promote buyer knowledge.
That mentioned, this response veers fairly near the usual “non-apology” to me. Neither the press launch nor the video deal with the principle level of the GamersNexus report, which is that the Flex program is vastly costly and a horrible various to pay-as-you-go financing packages. Hou spells out a number of use instances the place it would make sense to lease as a substitute of purchase (whereas additionally saying that this system shouldn’t be out there to anybody below 18).
However none of it truly counters the numbers specified by the report, that after only one 12 months you’re paying greater than the PC is value, and that after a number of years you’re paying 5 – 6 instances what it’s value, even when the {hardware} is upgraded. The Flex program would make much more sense — albeit nonetheless be a foul monetary deal versus merely shopping for on credit score — if after a set period of time you “owned” the PC and didn’t should return it. You would then sustain a nominal subscription price to make the most of the improve program.
As soon as once more, rental techniques are nearly at all times a foul deal versus a straight buy or financing. NZXT didn’t invent the concept of charging poor folks a giant amount of cash in small chunks. However I don’t suppose you may counter unfavourable press when you’re merely dismissing the largest a part of the criticism.
