Why is it that all the top tier games took a big TIV hit the past couple days, yet all of the Redbox flip remain intact? Am I missing something?
I believe the TIV algorithm takes into account volume traded and volume in stock. Works similar l like trading equities. Overvalued items are traded at a higher volume eroding the TIV. As a high volume gets traded gamestop doesn't want them because they become overstocked so they tank TIV to curtail trade ins.
As far as redbox goes, those games suffer from redbox theft - rent the game, return just the sticker. Stolen redbox games are most likely traded for cash and not trade credit. Games traded for cash have a higher profit margin, and are thus less likely to have an impact on TIV.
I have feeling gamestop has become more focused on turnover rates for traded items as this is where the bulk of profits come from. As an unintended consequence, perhaps it's considered acceptable collateral damage, is the effect it has on CAGs.