Do you have a box full of old video games just sitting around, collecting dust? Last week, Toronto startup GameBot.ca launched to help avid video gamers sell old games that they have already beaten and buy new (previously played) games at a discounted price.
CEO and founder of GameBot, Hammad Siddiqui says that the advantage to buying with GameBot instead of a site like eBay is that they “do not charge a listing fee. You only pay when your game is sold.” GameBot is currently charging a 10% commission fee off of the final sale price.
According to PwC, Canadian consumer spending on video games is projected to grow by 6.6% year-over-year by 2014. So, it’s not surprising that Canadian startups are getting into this space.
Siddiqui told me that Canadian online bandwidth caps are also working in their favour right now, as people will continue to buy a lot of console games until online gaming bandwidth isn’t so expensive in Canada.
Besides having the convenience of getting used games online instead of going to the store, GameBot is encouraging usage of their service by offering a $2.00 credit when you sign-up and share a link to GameBot with friends on Facebook.
The company was previously called Simplo, and sold a broader array of consumer electronics items but they chose to re-focus just on the video game market. Siddiqui says that the company decided to make the switch so that they “can focus on delivering a great experience for video games (i.e. having intelligence around market price and suggesting the best possible price when a person goes to sell their item), ensuring we have good metadata for all games, and keeping our library up-to-date with the latest games, etc.”
Not surprisingly, the primary target audience for GameBot is hardcore video gamers aged 18-40, who tend to buy 3 or more titles per month. However, Siddiqui says that GameBot has already seen significant sales from parents buying games for their very young kids. Since the website is only a little over a week old, we'll have to wait and see if this new strategy pays off for the company.