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Used game start-up offers publisher revenue share

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.

The US used game market generated $19.3 billion last year, and remains a vital revenue stream for retail businesses despite consistent and widespread complaints from publishers and developers.
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Matthew Handrahan

Editor-in-Chief

Matthew Handrahan joined GamesIndustry in 2011, bringing long-form feature-writing experience to the team as well as a deep understanding of the video game development business. He previously spent more than five years at award-winning magazine gamesTM.

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