Retail Game Cards
Such a genius business. Extracted from the original interview.
And why do retailers love these cards? The economics work in their favor.
Now, there’s an interesting fact about these cards. Retailers love them over any other product they have in their store, because the cards themselves don’t take up any inventory.
They’re not activated until they’re purchased, so they don’t sit on the balance sheet of the retailer. They feel like “free money” to retailers. So it’s a very positive business for retailers to get into, and it really lowers the bar for any retailers who are unsure about it, they don’t need to worry about losing money on it.
The really big untapped market for these digital media companies is gift giving. No matter how much someone loves an online world no one is going to say “hey, merry Christmas. I logged into your account and gave you 25 bucks.” Not to mention the impulse buy.