Online trade for gamers

A new online reseller that offers new console game titles and lets consumers trade in old ones has been launched this month claiming its products are between 10 and 30 percent cheaper than the retailers.

Melbourne-based Games Connect is carrying new and pre-played titles for the Microsoft Xbox, Sony PS2 and Nintendo Gamecube consoles. All Interactive will distribute the games.

Company founder Stephen Hoey claimed the operation is unique in the market as consumers have the option to trade in their pre-played games and in return receive credits that are used towards future discounted purchases on the site.

Under the credit system, Games Connect would buy a pre-played game from a consumer at a discounted rate.

"Research showed that console gamers could buy pre-played and new games on the web on differing sites, but there was nowhere that they could do both or in fact realise the value of that game once they have played it out. Games Connect was created to address these issues," said Hoey.

Hoey remarked that while profit margins on new game sales are "pretty lean" the company would make a higher margin from pre-played games it sold.

Games Connect would be primarily focusing on delivering console games to regional Australia. However, it also planned to do some marketing in cities. The site went live on 1 August.