Unless you have “CEO - GameStop” on your business card, it’s a safe bet that you’re not thrilled with the way the used-game market works. One company that wants to make trading in old games a more consumer-friendly process is Goozex.
I asked Goozex CMO, Mark Nebesky, about the company’s wacky name, his thoughts on most publishers being against used games, and of course, the less-than-flattering article about Goozex that recently ran on this very site.
Bitmob: In case you weren't already aware when you saw the "Goozex or Goose Sex?" article, Goozex is an interesting name. Does it have any special meaning? How did the name come about?
Goozex: About a year ago I met by chance in a bar in New York a marketing consulting guru whose job it is to come up with brand names. After I explained Goozex he simply said it was the worst name he had ever heard, and that it made no sense. I then told him it stood for "Goods Exchanged," and he was still less-than-impressed. Goozex is our way of playing with the term "Goods Exchanged," and please remember that Goose Sex is NSFW!
Bitmob: How was the company started?
Goozex: Jon Dugan, co-founder, went to a local used-game shop about four years ago to trade-in a stack of games, and only got about $35 for the lot. It was a wakeup call to change the system because even though he had traded in most of his game collection, he didn’t earn enough to purchase one new game! This is an experience millions of gamers have had throughout their lives.

The Goozex team and a cute baby they got for a used copy of Fantavision
After this experience, Jon set out to build the Goozex plan, and then pitched the idea to a university business case competition. Unfortunately, he lost to someone that created sweat guards for men's undershirts made out of baby diapers. But, from the event he was able to put together a team with Valerio Zanini, CEO, and myself. And from a gamer's perspective, getting a fair deal on your game trades is a sweet one.
Bitmob: Pretend I'm a lazy idiot (it's a stretch, but humor me). How would you explain Goozex and convince my lazy butt to use your service?
Goozex: That's funny you ask how we work in that way because we are, in one sense, designed for the laziness in us all. In short, Goozex connects members to trade games between themselves using a virtual currency, Goozex Points. You simply get in line for games you want and spend the points you earned for games you traded out.
If you like setting up your own auction listing page, hoping you get the bid price you wanted, or haggling on game prices then maybe Goozex is not a good fit for you. But if you like a hassle-free, "set-it-and-forget" service, then we'll work out nicely for you.
Bitmob: Many developers and publishers have been vocal about their dislike for the used-game market. What's your take on the whole issue?
Goozex: Let me start by saying that first and foremost, the Goozex team and I have been lifelong gamers. A healthy Goozex exists only in a healthy game industry. New game sales are needed for Goozex to continue operating.
I would argue that at $60 price points, it takes on average, two games-per-month to stretch thin the typical gamer's wallet. To me, that means the publisher that develops and markets the best game with the highest metacritic score, is usually the one that wins the new sales from the consumer. These are your heavy hitters like EA, Activision, and Ubisoft.
The secondary market is where the average gamer can actually get value from their new games and convert them into titles they couldn't afford, but still wanted to play. In this case, the gamer wins by playing in both the new-and secondary-video game market. Spend the money on the games you know you want, trade them, and get the other games you wanted to try out. My point is that when consumers play more games it’s a win-win for everyone.
Bitmob: It's impossible to ignore the current trend toward digital distribution with regards to console games. How are you poised to handle this inevitable transition?
Goozex: It's a big question with a lot of “what ifs” built in. There’s no doubt digital distribution will be part of the next-gen gaming canvas, and that the adoption rate may be similar to that of digital music. But, the jury is still out on what OnLive will become or how Xfire's new digital store will work out.
One question we want to explore further is if digital and physical media can happily coexist. Are digital consumers the same as today's gamers, or will the gaming market pie actually expand? These outstanding questions will help our positioning in the digital space. The core of Goozex is connecting gamers, and that will be the same principle of our digital business as well.
Bitmob: I mentioned Tony DaSilva's article earlier in this interview. How would you address his specific criticism of the Goozex service?
Goozex: As part of his Goozex experience, Tony had put an emphasis on an issue with queue management, which is that it sucks to be at the end of a line. It's a problem you see it all the time on Netflix, Gamefly, and other services that have queues. The benefit of the queue system is that it is fair to everyone. The negative to the queue system is that it is heavily dependent on the supply of games.
In an effort to reduce this barrier we've just rolled out two new services. The first one is a revamped Goozex Exchange, whereby members can convert points into new game sales. It's still in beta, but our goal is to introduce the opportunity to buy most games and movies and move towards a 2-for-1 deal. Send in any two top tier games and with the points earned, get at least 1 new game. The goal is to supply the site with top games and provide instant gratification. While we're in beta, we're testing pricing analysis and order fulfillment. So far with hot new releases like Uncharted 2, it has been working to our expectations.
The other development is the introduction of Instant Match, which is a new service that can immediately connect members to conduct a trade. Here the goal is to shorten the queue length for members.
Bitmob: You've been in business a few years now. Are there any interesting trends you've noticed? Any bizarre games that are particularly valuable for some reason or another?
Goozex: The first is that there are a ton of legit gamers well past 30 years old. The stereotypical image of a little kid playing in the basement is not what we're seeing. We have members that have impressive jobs, have families, do very interesting things and still game like there is no tomorrow.
The other trend was how quickly gamers shifted from the PS2 to the Xbox 360. When we first started, the PS2 had the lion share of trading activity. Then the Xbox 360 came out and took off and really hasn't looked back since. Core Wii games fair well, but non-Nintendo IPs usually have low demand. All but one of our top 10 requested games of all time on Goozex are for the Xbox 360.
The other thing that always blows my mind is how our top monthly traders are able to haul in 80 plus games in one month. That's saying a lot about being a game hoarder!
Bitmob: Thank you for your time.
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