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"I wonder if this co-op mode would be better suited to teams within the same gym"

Definitely, this. Make it a cooperative group effort like skipping, not a competitive team sport. See my comment here: http://news.ycombinator.com/item?id=1687502

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Yeah I like the idea of a group working towards a common goal that everyone is contributing to more than trying to beat someone else. Competition works really well sometimes but perhaps not in this case.

On the other hand, a lot of people who are social/motivated by team psychology already have other motivating options, like team sports, group classes etc.

The interesting thing in this idea (which I agree with the comment that it would be great for home equipment) is that it allows you to tap into your motivation circuits even when you are engaging in a solitary activity.

The nice thing is that you can build around all of these with the same system and people can take what they want from them. There is no reason why any of these elements would need to be mutually exclusive.

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