I agree on brands. As long as their a way to distinguish a seller (even if it’s just the color of the packaging), brand plays an important role. However, just like in the real world, big brand currency sellers have lower priced sites that are basically the same but are sold “incognito” in order to reach more price conscious customers. Revealing this kind of information does have an impact.

Furthermore, given enough motivation price-wise, customers tend to give even unknown brands a try. Take a look at the massive success low-priced discounters have in the US and Europe. They hardly offer any branded products.

Brand/Trust (it’s the same in this case, isn’t it?) guarantees a certain monopolistic price margin. It doesn’t make sellers invincible to the forces of the market.

There are roughly 25 sellers of game currency in the US/EU market with a customer base that exceeds 20,000 players (which pretty much guarantees an annual revenue of more than 1 million USD). That kind of operation is difficult to uphold if you are unable to provide a trustworthy service. That’s already 24 highly professional, efficient and trustworthy opponents for IGE.

The only thing they lack is credibility provided by third parties and exposure - I think either of those is a matter of time. Unless IGE manages to buy them all (after all, they are working on it) it will lead to a massive price competition given an increase in the market’s transparency.

1. In life there are generics, but brands still exist. Eg ibuprofen or acetaminophen - people still buy the brandname version.

2. This is virtual currency we are talking about. Half the battle is getting the customer to trust you. IGE? I trust them. Lewt & Mogs & Team-VIP? Those too. Anyone else? Nope.