Other than Gamestop and you guys, what competition is there?

eBay, Amazon Marketplace, and Half. [Fee comparison: http://www.dawdle.com/selling/index.php/fees/ The Google Spreadsheet isn't locked, so please don't abuse it. :) ]

What's interesting is that we're trying to get all the small independent stores to sell on Dawdle. They're a different beast - many of them don't even sell new games. They're typically in a strip mall next to a Wal-Mart that does. So people go into the indie store, sell their games, and walk to the Wal-Mart to buy new games. Only the people who can't afford new games anyway or are looking for older stuff that Wal-Mart doesn't stock end up buying at the used game store, so the publishers/developers/retailers actually don't "lose sales", which is their main concern.

If people are going to go to the Walmart to buy new games anyway, why wouldn't the indie store them as well? Even if the prices are a little higher, wouldn't the convenience of not having to go somewhere else make up for it?

They've told us it doesn't make up for it. The stores just walk down to the Wal-Mart themselves to pick up a couple copies of Halo 3 or whatever rather than actually working with a games distributor like Jack of All Games or whoever. They just can't compete on new games; that's why they do used, retro, and host tournaments and so forth.