Namco shipped 2.5 million copies of Tekken 6 and it's going to be pretty hard to sell this amount of copies. Sure stores were stupid to buy this amount of copies that should know they wouldn't sell all, they will have to make offers for loses to sell everything! 

I thought you could send back aswell?

They can either send them back or get a large discount over the next Namco game.

yeh what will they do with them!

not at walmart, they just sit in our back cage.

Retailers actually have quite a few options. For newer titles, sending them back is a common option. The wholesaler takes them back in, and gives them full credit toward all received copies. In turn, they will re-shrinkwrap them, and resell them to anyone looking to buy them.

For semi-old titles, a deal may be negotiated on the wholesale price. Rather than taking back 10K copies at $48 wholesale ($480K, from normal wholesale of a $60 retail game), they may offer the store a break on those copies, and give them $18 credit, effectively making the price $30 wholesale, and then the retailer could sell them for $40 and still profit.

For the really old ones, a few other courses of action may happen, though they are more rare. The wholesaler may give full credit back and ask for the copies to be destroyed. Usually some small sign of proof is sent back rather than the whole package. (This is the norm in the book industry, also.) Another more common route, they may be liquidated, and offered to the retailer at wholesale cost. This is usually where those dirt-cheap games come from. (That $5 new game probably just gives base print costs back to the publisher.)

Finally, there's the "oops, we held it too long" case. This is when the retailer is screwed. The item now is completely OOP and no longer supported. It may be due to the rights for it being lost, or being outdated. Any new PS1, Gamecube, or XBox game (or older) would now fall into this category. Most retailers don't hold things to this point without getting a liquidation deal.

Of course, any of these may happen at any point. A store may force sendbacks because they do not feel that they could reasonably sell that many copies at any price. A new game that bombs or is overproduced (like Tekken 6) may not be asked for in a shipback, and lowered fairly quickly. There's still a few other variables, too, such as the purchase agreement. The retailer may be required to keep a certain number of the copies shipped, or may have even been purchased under non-returnable terms in exchange for a larger discount up front. Who knows what could happen, but in the case of Tekken 6, wait a month. I think the price will go down.

At Walmart, it's still Namco's property until it's brought out of warehouses. So, they can send them back as it's Namco's, not WalMarts.

actually no, its our game vender Mosaic's property. They refuse to let us send games back unless damaged or recalled.

Well I doubt they can send them back. Also none of us know their deals with the publisher or supplier.

Slash prices. Take a loss. Lesson learned.

I think the 2.5m figure was a prediction by Namco for sales ending in March 2010. If lucky they will reach 2m.