Price Floors for Downloadable Content

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Trunkers Posted: 06-08-2009 11:14 AM

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While the Goozex trading model works very well for physical game discs, the model doesn't always hold up for downloadable content such as XBLA games. The main reason being that most downloadable games cannot be resold, and for the most part maintain fixed prices.

Let's take for example an $10 (800 Microsoft points) XBLA game like Peggle. The break even equivalent is 200 Goozex points. However, trading only really happens above this margin, as it hits the sweet spot for potential buyers and sellers.

In a downloadable game trade, we have two archetypal users. The seller is likely trying to buy Goozex points at a discounted rate. For example, if the list price for Peggle is 300 Goozex points, a seller could buy a $10 game card and trade it off for 300 Goozex points ($15). This is quite different from a typical seller for a physical game disc. For other games, the seller has a game that they've played and are no longer interested in, and thus trade it away.

On the buying end you have many people who want to spend as little money as possible maintaining their gaming habits, and downloadable content generally represents the only games that they can't usually get through a second hand market.

The problem is that downloadable games tend to fall below their break-even mark. Alien Hominid, another $10 game, trades for 100 points. I would imagine no trades will ever happen at this price point, because a seller could get a higher value elsewhere. There are many downloadable games that I'm interested in, but their prices are so low that nobody would ever sell them.

To me, this problem is addressed by implementing a price floor on downloadable content. For example, you could have the floor be 50-100 points higher than their breakeven points. e.g.:
$5 game : 150 Goozex points
$10 game : 250 or 300 Goozex points
$15 game: 400 Goozex points
etc.


This would ensure that trading actually occurs, and allows Goozex to actually have circulation here. One drawback, from Goozex's point of view, is that instead of people buying points directly from Goozex, they instead buy game cards from another retailer (Amazon). I don't know in what volume people actually buy points, but a price floor could make trading possible for downloadable content.

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JoeCamNet replied on 06-08-2009 12:26 PM

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Good idea, as I'd love to get some Arcade titles off of Gooz myself, but it needs to work both ways with some kind of ceiling in effect as well.

NOBODY would ever pay 750 Goozex points to get Space Invaders Extreme or Zombie Wranglers.
Or hey, I MIGHT pay 400 points for Street Fighter II HD Remix, but I wouldnt' even consider paying 600.

And honestly, Totemball and Aegis Wing and Dash of Destruction should be labeled as untradable.  There is no need to have people try to make a quick buck taking Goozex points for a FREE GAME.

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JoeCamNet replied on 06-08-2009 12:26 PM

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Good idea, as I'd love to get some Arcade titles off of Gooz myself, but it needs to work both ways with some kind of ceiling in effect as well.

NOBODY would ever pay 750 Goozex points to get Space Invaders Extreme or Zombie Wranglers.
Or hey, I MIGHT pay 400 points for Street Fighter II HD Remix, but I wouldnt' even consider paying 600.

And honestly, Totemball and Aegis Wing and Dash of Destruction should be labeled as untradable.  There is no need to have people try to make a quick buck taking Goozex points for a FREE GAME.

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Kenny007 replied on 06-08-2009 2:03 PM

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I'm not sure how I feel about a category of games being 'protected' from market demands by always ensuring a profit for the buyer out to flip.  If the game slumps that low, leave it to the buyer to get the game themselves via traditional means.

The few downloadable games I've been interested on Goozex have always been grossly overpriced.

Join the Goozex Pokerstars Club!

GreenManGaming

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slayereyals replied on 06-08-2009 2:07 PM

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I would only get a downloadable game that's 100 points extra off the original price Ex: $10 game, 300 points max.  The reason being is you can't recycle it back into the system, so you spent your points, played the game through and are stuck with it.  Downloadable games would become an easy way for new users to gain feedback, but really doesn't benefit veteran sellers as they get their points instantly w/ appropriate feedback

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solidsnake222 replied on 06-08-2009 2:23 PM

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I agree,then again,I got a lot of points for noby noby boy (twice) and everyday shooter