Many gamers are fully aware of the controversy between publishers and used game retailers…such as GameStop. Some publishers, like EA, have implemented pay pass services to prevent used game purchasers from accessing online features, in an attempt to minimize what they view as lost profits.
But at least one retailer is trying to make everyone happy by undercutting GameStop and also sharing profits with the publishers:
First announced as a partner site of auction site GameGavel during the summer, Mike Kennedy hopes his new “Parcel Gamer” site will help fix the issues with the used game market.
So how will Parcel Gamer differ from the competition? By offering over 30% more for trade-ins and providing used games with access to Online Passes and DLC included in the new versions. Perhaps the best (craziest?) part of Kennedy’s plan is to provide from $3 to $5 of the sale price back to publishers.
How exactly will Parcel Gamer accomplish this? Ars Technica explained:
“…thanks to significantly lower profit margins and overhead than major brick-and-mortar retailers. He gave an example where the site pays out $30 for a recent release, then resells it for a cheaper-than-new $55. That leaves enough margin to purchase a $10 online pass, pay $5.50 to the publisher, pay $4 for round trip shipping, and still reap $5.50 in actual profit”
Kennedy said that if GameStop paid publishers just 10 percent of profits from used game revenue they would contribute $300 million into the industry each year. But they can’t…
“[GameStop] has over 17,000 employees and 4,000+ stores, which equates to massive overhead and expense,” Kennedy said. “They simply can’t operate on the slimmer margins we will be able to enjoy.”
Kennedy said he plans to partner with around 6 major publishers by E3 in June but hopes that fears of retaliation from GameStop won’t scare off potential partners.
He does note that publishers have indicated to him that physical copies of games will be around for at least one, possibly two more console generations, but Kennedy said “Retail needs to change, whether it is by our hand or someone else’s. I think we can all agree to that.”
Craig Hunter – who has written 1178 posts on The Jace Hall Show.
Craig Hunter is a main contributor for the Jace Hall Show and has been an avid gamer for over 15 years. He also freelances for a number of websites and magazines covering mobile products and emerging technologies.

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