NZXT Founder and CEO Johnny Hou addresses concerns about the Flex Subscription program after being called out by tech Youtuber Gamers Nexus.
NZXT is once again in hot water after being called out by Gamers Nexus for shady business practices on their recent investigative video titled “Predatory, Evil Rental Computer Scam Investigated“. Last time, it was a product concern wherein the NZXT H1 chassis had to be recalled for being a fire hazard. This time around, the company is being called out for its business practices. The company’s founder and CEO has stepped in to address the matter with a statement.
Press Release
NZXT was founded over 20 years ago committed to serving the gaming community. We believe that means bringing PC gaming to as many people as possible.
Over the last several days there has been a lot of conversation about NZXT and our Flex subscription offering. Our intent and belief is that we are creating a new and innovative way for people to game; we recognize that we’ve fallen short in some areas and are committed to taking action to rebuild your trust.
To get this started, our Founder and CEO, Johnny Hou, released a video that provides insight into NZXT’s point of view.
There were several influencer marketing collaborations where the statements did not accurately reflect the details of our NZXT Flex program. To address this: we’ve pulled all influencer-led Flex advertising and have instituted a more robust creative review process. It is not acceptable for our advertising to communicate things that are not true.
Messaging and website content will be updated to clarify Flex program details and remove any unclear messaging.
Product Naming Clarity
Unclear product names have caused confusion among gamers who are searching for the right solution for their needs (Purchase vs. Subscription). To address this: we will be changing the names of products offered through our Flex subscription, providing a very clear distinction between the two.
NZXT Flex customers have never experienced a pre-tax subscription price increase and will never experience one unless they decide to switch subscription tiers.
For example: Recently, a sales tax increase was required for subscribers in certain states. This increase was communicated to each impacted subscriber ensuring they were aware of the change and could then decide whether to continue with the subscription or cancel it due to the tax increase.
Hardware Spec Changes
During the regular course of business, especially during high seasonality moments, the availability of different components requires specification changes, sometimes in real-time.
If a system is ordered and a component becomes unavailable, our customer support team will contact the customer to ensure they are aware of any change and work with them on prices. In fact, customers may experience a free upgrade based on changing inventory levels.
For example: During Black Friday weekend, we changed the GPU within the Player: Three Flex PC from the 4090 to the 4080 Super due to the EOL of the 4090 graphics card. For those customers that had subscribed with a 4090, we called each one to notify them of the change, dropped their subscription price, and confirmed they wanted to continue with the subscription.
In short, we only make changes with the customer being aware and accepting the changes.
NZXT Flex Subscription Program
In cooperation with our partner Fragile, NZXT’s Flex program is a subscription-based gaming PC alternative that does not lock customers into a long-term commitment.
To ensure clarity, we have updated the subscriber agreement to ensure each aspect is even clearer. While subscriptions may not be for everyone, there are certain truths we want to highlight:
• Subscribers do not own the PC.
• Subscription is not a loan – the subscriber does not incur any debt or pay any interest.
• The customer retains ownership of hard drive data at all times. Neither NZXT nor Fragile will sell any customer data. We are updating the contract language to remove any confusion about this matter. When a PC is returned, we wipe the hard drive (per standard policy).
Flex offers a minimum spec guarantee, so it is possible to receive different system specs; often, people actually receive a PC with better components.
• If the incorrect system is shipped to a subscriber, a new system will be delivered at no cost to the subscriber.
Subscribers are fully covered by our warranty – if a component fails, we are responsible for it.
Subscribers are eligible for a hardware upgrade after a two-year time period, at no additional cost or increase to their subscription fee.
• The hardware upgrade is dependent on the technology available at the time of upgrade.
Each PC comes with a guaranteed minimum frames-per-second performance. If the system does not perform at that level, the subscriber is eligible for a full PC replacement (per our warranty policy).
• Recently, the data being reflected on product pages were incorrect; we are currently revising processes to ensure accuracy.
Only individuals who are 18 years and older showing a valid ID are eligible to subscribe.
• At the start of the program, there were instances where photo ID was not required if the payment method utilized exceeded certain security measures. In Q2 of 2024, we revised the process to require a photo ID for all applicants.
Just as the subscriber can subscribe at any time, they can also cancel their subscription at any time.
• There is no cancellation fee.
• Upon cancellation, shipping costs for returning the unit are free.
• If the original packaging was discarded, there may be a fee for new packaging.
• A fee may be charged if there is substantial damage to the PC.
We are extending the dispute charges window from 60 days to 2 years and will comply with any regulations that provide longer dispute windows.
Overall, we believe there is a use case that allows for flexibility and lower commitment than owning or financing a PC and we’re committed to offering a solution in this space. Check out the NZXT Flex testimonial page to read a few direct quotes from our subscribers.
Over the last several days there has been a lot of conversation about NZXT and our Flex subscription offering. Our intent and belief is that we are creating a new and innovative way for people to game; we recognize that we’ve fallen short in some areas and are committed to taking action to rebuild your trust.
To get this started, our Founder and CEO, Johnny Hou, released a video that provides insight into NZXT’s point of view.
Actions Being Taken
Marketing and Messaging UpdatesThere were several influencer marketing collaborations where the statements did not accurately reflect the details of our NZXT Flex program. To address this: we’ve pulled all influencer-led Flex advertising and have instituted a more robust creative review process. It is not acceptable for our advertising to communicate things that are not true.
Messaging and website content will be updated to clarify Flex program details and remove any unclear messaging.
Product Naming Clarity
Unclear product names have caused confusion among gamers who are searching for the right solution for their needs (Purchase vs. Subscription). To address this: we will be changing the names of products offered through our Flex subscription, providing a very clear distinction between the two.
Now, let’s walk through the NZXT Flex program
Price ChangesNZXT Flex customers have never experienced a pre-tax subscription price increase and will never experience one unless they decide to switch subscription tiers.
For example: Recently, a sales tax increase was required for subscribers in certain states. This increase was communicated to each impacted subscriber ensuring they were aware of the change and could then decide whether to continue with the subscription or cancel it due to the tax increase.
Hardware Spec Changes
During the regular course of business, especially during high seasonality moments, the availability of different components requires specification changes, sometimes in real-time.
If a system is ordered and a component becomes unavailable, our customer support team will contact the customer to ensure they are aware of any change and work with them on prices. In fact, customers may experience a free upgrade based on changing inventory levels.
For example: During Black Friday weekend, we changed the GPU within the Player: Three Flex PC from the 4090 to the 4080 Super due to the EOL of the 4090 graphics card. For those customers that had subscribed with a 4090, we called each one to notify them of the change, dropped their subscription price, and confirmed they wanted to continue with the subscription.
In short, we only make changes with the customer being aware and accepting the changes.
NZXT Flex Subscription Program
In cooperation with our partner Fragile, NZXT’s Flex program is a subscription-based gaming PC alternative that does not lock customers into a long-term commitment.
To ensure clarity, we have updated the subscriber agreement to ensure each aspect is even clearer. While subscriptions may not be for everyone, there are certain truths we want to highlight:
• Subscribers do not own the PC.
• Subscription is not a loan – the subscriber does not incur any debt or pay any interest.
• The customer retains ownership of hard drive data at all times. Neither NZXT nor Fragile will sell any customer data. We are updating the contract language to remove any confusion about this matter. When a PC is returned, we wipe the hard drive (per standard policy).
Flex offers a minimum spec guarantee, so it is possible to receive different system specs; often, people actually receive a PC with better components.
• If the incorrect system is shipped to a subscriber, a new system will be delivered at no cost to the subscriber.
Subscribers are fully covered by our warranty – if a component fails, we are responsible for it.
Subscribers are eligible for a hardware upgrade after a two-year time period, at no additional cost or increase to their subscription fee.
• The hardware upgrade is dependent on the technology available at the time of upgrade.
Each PC comes with a guaranteed minimum frames-per-second performance. If the system does not perform at that level, the subscriber is eligible for a full PC replacement (per our warranty policy).
• Recently, the data being reflected on product pages were incorrect; we are currently revising processes to ensure accuracy.
Only individuals who are 18 years and older showing a valid ID are eligible to subscribe.
• At the start of the program, there were instances where photo ID was not required if the payment method utilized exceeded certain security measures. In Q2 of 2024, we revised the process to require a photo ID for all applicants.
Just as the subscriber can subscribe at any time, they can also cancel their subscription at any time.
• There is no cancellation fee.
• Upon cancellation, shipping costs for returning the unit are free.
• If the original packaging was discarded, there may be a fee for new packaging.
• A fee may be charged if there is substantial damage to the PC.
We are extending the dispute charges window from 60 days to 2 years and will comply with any regulations that provide longer dispute windows.
Overall, we believe there is a use case that allows for flexibility and lower commitment than owning or financing a PC and we’re committed to offering a solution in this space. Check out the NZXT Flex testimonial page to read a few direct quotes from our subscribers.
