G2A Slammed by Developers at Their Own Panel

G2A Slammed by Developers at Their Own Panel

G2A – a controversial key reseller that has in the past been accused of fraud, using stolen credit cards to sell keys on their marketplace – was publicly slammed during their own show today. During a live Q&A at the Reboot conference in Croatia, G2A’s senior account manager Marius Mirek had some heavy questions thrown his way – the first asking if the company was founded as a “grey market reseller.”

“I know we’re called a grey marketplace,” Mirek pushed back, “but as our team sees it there’s nothing really grey about it, beyond people not understanding our business model.”

By definition, a grey market is the trade of goods through legal distribution channels that are unintended by the original manufacturer.

“You must understand that obviously a large portion of the business and a lot of the reason that people choose G2A as a service,” he continued when pressed, “is because people can get stuff at a lower price than they can from elsewhere, and a lot of the reasoning behind that is because of people buying [games] in cheaper territories and selling them to people where it’s generally more expensive and they still make a saving. That’s the very definition of grey market trading.”

“We’ve noticed really quickly that gamers want to access your games,” Mirek said, addressing the audience. “They don’t have $60 or $70 to acquire the game that they want. Codes that are available on G2A, they come from various places. Either from sales or bundles or from people who have acquired keys at some point and they just want to sell it and buy the game they want.”

“Obviously customers have the right to sell at any price they want to sell a product, just like on eBay or any other market place,” he continued. “But mind you, we have developers, publishers, the list is available on the marketplace, that are participating in G2A. Now people see [that] and publishers see that this is a market that can be no longer ignored. They want to get that value conscious customer.”

Those previously mentioned participants are members of the G2A Direct program, which lets developers keep a 10-percent cut of keys sold through G2A – regardless of their source. A previous report from Polygon pegged multiple developers as being luke-warm on the service, with one stating he signed up because G2A refused to take down his keys from their marketplace.

Developer Rami Ismail was at the show, and tweeted some audience reactions:

In response to a question as to why the company takes so long to change its direction, Mirek said that 40 per-cent of G2A’s workforce was female.

Thomas Was Alone creator Mike Bithell launched another question at Mirek (you can see the exchange in Eurogamer’s video below too):

"You charge the customers who want to avoid fraudulent stuff with the Shield system. You ask us to contribute our time and energy to detect fraud on your system in exchange for 10 per cent. I'm interested what the 750 people - 40 per cent of whom are women - are doing to earn the 90 per cent of the transaction?"

"There are people working in marketing...," Mirek replied.

"Is it mainly marketing?"

"No. IT and security."

"Good job."

G2A delivered a press release to Eurogamer after the panel, which you can read below:

Grey market, despite the Wiki definition, works as a negative label and people who throw this name against us just want to damage our business - we cannot agree to that. Resale of keys is perfectly legal, it brings a lot of benefits to the gamers community as it introduces competition and prevents raising prices to unreasonable levels.

Those who want to stop it act against free market and property rights that are essential to modern economy. If something is to be called grey or shady, these are the practices of making 'suggestions' aimed at hurting legally operating marketplace. If you call G2A grey, try doing the same with respect to eBay, Amazon and basically all the marketplaces - it is obvious that today we are simply a part of normal, legal market.

Fees. We want to quickly explain our fees regarding developers and sellers, since there seems to have been a misunderstanding during the Q&A. There are two separate revenue streams for developers on our marketplace. The first revenue stream is from regular sales made directly by the developers. G2A only takes a General commission of 10.8 per cent from these sales - the remaining 89.2 per cent of the sale goes directly into the developer's pocket (which is way above the industry standard of 70 per cent).

However, thanks to G2A Direct, developers are given a second revenue stream - they can make an additional up to 10 per cent on all third-party sales. This is an extremely attractive offer as no other marketplace gives developers a chance to make any money on third-party re-sales. Imagine that someone purchased a LG TV, and then went to re-sell it on eBay - eBay does not offer LG, or any other company, any percentage of this sale. We are the only marketplace in the world that offers this to developers.

You can watch the entire talk here.

Gearbox recently cut ties with G2A, after the key reseller made no effort to change its business practices.



 

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Comments Comments (14)

 
Posted by Xenojay
On Friday 21 Apr 2017 9:47 AM
4
Well this sounds like a fun burning rubbish fire
 
 
 
Posted by AdamC
On Friday 21 Apr 2017 10:24 AM
1
If they already sold the keys what's the problem?
 
 
 
Posted by dr_zox
On Friday 21 Apr 2017 10:35 AM
-
To be honest the 10% deal is lucrative, it sounds like the developers don't understand economics....

If your publisher decides to sell your keys to USA for $50 and to Russia for $30 then you as a developer have already made your profit... Or if you reduce your price to $25 for a humble bundle you have also already made your profit.

The person in Russia then on sells the key world wide and you as a developer don't have a choice then your good is already sold and that is that. If someone with a business mindset buys a ton of humble bundles and on sells your keys then you don't get to see a dime of that either.

However offering developers 10% means that they get additional profit for each onsale of the product. Which means they get $33 for each russian sale rather then $30.

If they don't like it then their publishers should stop selling global keys to other countries or stop selling them for cheap as part of bundles.
 
 
 
Posted by dr_zox
On Friday 21 Apr 2017 10:37 AM
1
21 April 2017, 10:35 AM Reply to dr_zox
To be honest the 10% deal is lucrative, it sounds like the developers don't understand economics....

If your publisher decides to sell your keys to USA for $50 and to Russia for $30 then you as a developer have already made your profit... Or if you reduce your price to $25 for a humble bundle you have also already made your profit.

The person in Russia then on sells the key world wide and you as a developer don't have a choice then your good is already sold and that is that. If someone with a business mindset buys a ton of humble bundles and on sells your keys then you don't get to see a dime of that either.

However offering developers 10% means that they get additional profit for each onsale of the product. Which means they get $33 for each russian sale rather then $30.

If they don't like it then their publishers should stop selling global keys to other countries or stop selling them for cheap as part of bundles.
Also I am not defending them selling fraudulently obtained keys, and I would love to actually see some figures as to how many keys are fraudulently sold. (from actual non bias journalists, not the obvious ones)
 
 
 
Posted by dr_zox
On Friday 21 Apr 2017 10:45 AM
2
21 April 2017, 10:35 AM Reply to dr_zox
To be honest the 10% deal is lucrative, it sounds like the developers don't understand economics....

If your publisher decides to sell your keys to USA for $50 and to Russia for $30 then you as a developer have already made your profit... Or if you reduce your price to $25 for a humble bundle you have also already made your profit.

The person in Russia then on sells the key world wide and you as a developer don't have a choice then your good is already sold and that is that. If someone with a business mindset buys a ton of humble bundles and on sells your keys then you don't get to see a dime of that either.

However offering developers 10% means that they get additional profit for each onsale of the product. Which means they get $33 for each russian sale rather then $30.

If they don't like it then their publishers should stop selling global keys to other countries or stop selling them for cheap as part of bundles.
Just realized I was wrong about something... IT is 10% of the profit of a video game, so not that much at all ahhh well
 
 
 
Posted by Tin-Automaton
On Friday 21 Apr 2017 11:02 AM
4
21 April 2017, 10:24 AM Reply to AdamC
If they already sold the keys what's the problem?
Mostly because it's individuals selling the keys -- not the developer directly.

Digital storefronts like Steam and GOG interface directly with the developer/publisher, where they control the price and get the majority of the profits. G2A has more in-common with something like eBay: People with extra keys sell them to G2A, who then themselves sell them again.

This is mostly an issue with small developers selling keys directly through their own website. If the credit card used to make the purchase is fraudulent, that will often be picked up by payment processor (a third party company that mediates purchases with credit cards) /after/ the fact. The card will be deactivated and the payment revoked, but the scammer will still have the key -- which they pass along to G2A.

What can make this worse for smaller devs is they are often forced to pay a chargeback fee -- which sometimes is higher than the cost of the original purchase. This is in addition to them not seeing a cent from G2A's sale unless they enter into their ecosystem.
 
 
 
Posted by ThatUndeadLegacy
On Friday 21 Apr 2017 12:04 PM
-1
Its good to see the gamers and the devs sh*tting on G2A, The Pc MasterRace Reddit is vehemently opposed to g2a.
 
 
 
Posted by MonkeyMan
On Friday 21 Apr 2017 2:00 PM
-
Like others seem to be saying, I don't really see a problem with them reselling keys the problem lies in where those keys are coming from and that's a hard problem to deal with
 
 
 
Posted by emetic
On Friday 21 Apr 2017 4:53 PM
-
21 April 2017, 12:04 PM Reply to ThatUndeadLegacy
Its good to see the gamers and the devs sh*tting on G2A, The Pc MasterRace Reddit is vehemently opposed to g2a.
Am i reading into this right that the problem everyone has with G2A is just their fraud protection / system / abuse?
 
 
 
Posted by AdamC
On Friday 21 Apr 2017 6:45 PM
-
21 April 2017, 11:02 AM Reply to Tin-Automaton
Mostly because it's individuals selling the keys -- not the developer directly.

Digital storefronts like Steam and GOG interface directly with the developer/publisher, where they control the price and get the majority of the profits. G2A has more in-common with something like eBay: People with extra keys sell them to G2A, who then themselves sell them again.

This is mostly an issue with small developers selling keys directly through their own website. If the credit card used to make the purchase is fraudulent, that will often be picked up by payment processor (a third party company that mediates purchases with credit cards) /after/ the fact. The card will be deactivated and the payment revoked, but the scammer will still have the key -- which they pass along to G2A.

What can make this worse for smaller devs is they are often forced to pay a chargeback fee -- which sometimes is higher than the cost of the original purchase. This is in addition to them not seeing a cent from G2A's sale unless they enter into their ecosystem.
They can't cancel a key that gets the payment canceled? Seems like that's the real issue.
 
 
 
Posted by ThatUndeadLegacy
On Friday 21 Apr 2017 8:04 PM
-
21 April 2017, 06:45 PM Reply to AdamC
They can't cancel a key that gets the payment canceled? Seems like that's the real issue.
a lot of devs dont want to piss off the gamers who paid for them, Though they shouldn't buy from g2a if they want working keys, maybe it's hard to track them?
 
 
 
Posted by drunk_monk
On Friday 21 Apr 2017 10:04 PM
-
They did that for Farcry 4 if I remember correctly.

When it pissed off gamers who didn't get how stolen keys are commonly sold on G2A they all unfairly packed a sh*t with Ubi. I believe Ubi made a super nice move and let the gamers have their keys so nobody except Ubi lost on the deal. And the theifs kept their money. And G2A kept their share of the stolen money.
 
 
 
Posted by AdamC
On Saturday 22 Apr 2017 7:44 PM
-
21 April 2017, 10:04 PM Reply to drunk_monk
They did that for Farcry 4 if I remember correctly.

When it pissed off gamers who didn't get how stolen keys are commonly sold on G2A they all unfairly packed a sh*t with Ubi. I believe Ubi made a super nice move and let the gamers have their keys so nobody except Ubi lost on the deal. And the theifs kept their money. And G2A kept their share of the stolen money.
Should have stuck to there guns and not given them back. IMO. Should have called out g2a then and put it on them.
 
 
 
Posted by tuftsdude
On Sunday 23 Apr 2017 1:02 AM
-
Never using them again. Tried selling with them before.