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Retail

Used game start-up offers publisher revenue share

Mon 15 Aug 2011 12:17pm GMT / 8:17am EDT / 5:17am PDT
Retail

PostalGamer will give 10 per cent of revenue from game sales to publishers

A new online marketplace is promising to legitimise used game sales by giving publishers 10 per cent of revenues from their games.

PostalGamer is the brainchild of Mike Kennedy, who founded the game auction website GameGavel in 2007, and his business partner Steve Sawyer.

US customers will post used games to the company in pre-paid envelopes, and their value will be turned into credit for its online marketplace. Shipping for games purchased on the marketplace is also paid for by the company.

PostalGamer is promising to pay 30 per cent more for used games than "the corner retail store". In addition, it will pay the publisher 10 per cent of the revenue generated by their games.

"While used games have historically been a 'negative' to publishers, our model turns them into a 'positive'," a statement on the PostalGamer website reads.

"We want to see physical game media continue to thrive, but the current state of used game retail is seriously doing its part to re-route publishers into new digital dimensions to curtail and abolish used game sales as we know it."

The company projects that the publishing community could receive as much as $500 million in payments over the next 4-5 years.

PostalGamer will also share sales data with publishers, allowing them to get a clearer picture of, "a game's popularity after it leaves the retail shelves."

Talks with "several publishers" are already in progress, with each participant receiving a seat on an "Advisory Board" that allows them to supervise the development of the service.

5 Comments

Terence Gage
Freelance writer

1,288 120 0.1
An interesting concept; I wonder if the publishers will begin to show some acceptance of used games if this eventually becomes the norm (or more likely, other retailers will bide their time and see how successful PostalGamer is in their first 12 or 24 months).

I've always thought a bigger retailer like Game or GameStop should have come to an arrangement with the big publishers - giving them a cut of pre-owned profits in exchange for timed exclusives or extra content; that kind of thing.

Posted:3 years ago

#1

Neil Young
Programmer

296 369 1.2
I wonder what they get for their 10%? Special rate on "project $10" codes would be an obvious deal to go for

Posted:3 years ago

#2
Indeed, if they're planning to pay people more for used games and also send 10% of sales to publishers, there must be some plan to make it more beneficial.

It sounds like a good plan, but I wonder if it's too late now that several publishers are progressing towards user based activation fees like Project $10.

Edited 1 times. Last edit by Christopher Beckford on 15th August 2011 4:11pm

Posted:3 years ago

#3

Rick Lopez
Illustrator, Graphic Designer

1,269 942 0.7
Sounds like a good plan and a good start. Im just hoping this practice eventually spreads to retail outlets. Retail outlets are really biting off the hand that feeds them when it comes to selling used games. I prefer to by fisical media than Digital media and the used games market isnt the real problem, the problem is greedy people. I see a win/win situation if retailers like GAME or Gamstop simply give a cut of the profit made from used games to publishers.

Posted:3 years ago

#4

Steve Sawyer
Editor In Chief

6 0 0.0
heeeeeeeeeeeeeeeey I'm that Steve Sawyer guy...

Posted:3 years ago

#5

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