Gray Market Key Seller Cost TinyBuild Games $450K in Revenue

Gray Market Key Seller Cost TinyBuild Games $450K in Revenue

The Gray Market has been a problem since last few years and the problem seems to be increasing rather than diminishing. Sites like G2A sells keys and they always attract customers because of their low monetary value but the Gray Market is seeming to a death trap for Indie Developers. This kind of Gray Key Sellers are affecting the revenue of Indie Devs. AAA developers haven’t been affected much because they can bear such losses while Indie Developers simply cannot.

maxresdefaultTinyBuild, the innovative developers behind games like Punch Club, Party Hard and SpeedRunners, said that G2A sold $450,000 worth of their products, and most of them acquired fraudulently. These all occurred when TinyBuild were trying to settle relationships with G2A in order to help them selling authentic keys.

The price of dealing with G2A was, not bland. Nichiporchik explains how TinyBuild established a modest online store to sell their game codes directly to fans. He claims that the frauds purchased thousand of codes through a portal, and began selling them on G2A.
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“The shop collapsed when we began to get hit by chargebacks,” Nichiporchik said, referring to the process by which credit card processors wipe away fraudulent transactions made with stolen credit cards. “I’d start seeing thousands of transactions, and our payment provider would shut us down within days. Moments later you’d see G2A being populated by cheap keys of games we had just sold in our shop.”

Using G2A’s own numbers, Nichiporchik was able to take a fast look at the volume of apparent fraud taking place.

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From this statistic, we can realize how much the gray market hurts developers. After watching this I reckon no one should buy games from the gray market as it’s almost as bad as piracy, and worse, these sites make money off it. We should give up buying games from Gray market to help developers and to give gaming a prosperous future.

Stay tuned to Asidcast for more news on Indie gaming economics.

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