The Motley Fool Discussion Boards

Previous Page

Fun & Games / Computer & Video Gamers

URL:  http://boards.fool.com/ive-heard-of-a-system-like-this-before-its-30377855.aspx

Subject:  Re: Goozex's economic woes Date:  11/12/2012  11:46 PM
Author:  TheJTrain Number:  34941 of 35965

I've heard of a system like this before. It's called currency. We already have many of them (e.g., the dollar) that are extremely effective.

What Goozex (pre-inflation - thanks for that link to that very insightful article, OP whom I'm too lazy to go look up) attempted to do (and succeeded for a period of time, IMO) was reduce the middleman fees that themselves reduced the total value of the trading transactions. Instead of selling a game on eBay or Amazon (and paying eBay or Amazon x% of the total in fees) or selling a game for dimes on the dollar at GameStop and then turning that cash around and buying another game from eBay or Amazon or GameStop (at somewhat elevated prices - see bid/ask) which frequently required a non-negligible infusion of extra cash to complete, with Goozex when you traded in a game valued at 1000 points (~$50), you could turn right around and get another game valued at 1000 points, only spending a "trade credit" that cost you a whole whopping $1 - which, along with webpage advertising, was how Goozex made money and kept the servers running.

Sure, they probably could've done the same thing with USD (like GreenManGaming is doing) instead of points, but back when Goozex started no one was doing that. I do wonder if using points avoids some kind of tax issue as opposed to dealing in official currency.

As a dedicated game-trader for many years, Goozex was where I went first, on both sides of the trade, for precisely that reason. My trading decreased significantly when my backlog got long and the 360/PC ratio of games I wanted to trade/get kept slewing more towards the PC end of things, more of which were ineligible to trade due to DRM etc. I'm saddened that what has happened to it has happened, 'cause it was a great thing for a while. Doesn't look like a comeback is very likely at this point, even after the acquisition.

JT
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us