Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: TheJTrain Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36156  
Subject: Re: Goozex's economic woes Date: 11/12/2012 11:46 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

TV Gaming Help?
Try the Help With This Home Theater board, and problem solved.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement