Walmart plans to start buying used video games from shoppers at stores in a move that goes after the bread-and-butter business of GameStop.Walmart Stores Inc. plans to expand its current online trade-in program by allowing customers to trade their used video games at 3,100 Walmart stores in exchange for credit toward the purchase of other items.The world’s largest retailer is taking aim at the $2 billion used video-game market. It’s a business that’s dominated by GameStop Corp., the world’s biggest dedicated seller of video games with the largest and most-established video game trade-in program.Retailers from Amazon to Best Buy also offer used video game trade-in programs. But Walmart’s new program is the biggest threat to GameStop, which for the last three years has drawn roughly half of its profits from buying and selling used video games.Starting next week, Walmart customers can trade in video games for credit that can be used in both Walmart and Sam’s Club stores. The value for each trade-in will vary by the title, console and age of the game, ranging from just a few dollars for older games to $35 or more for newer ones.Walmart made a point on Tuesday of saying that the credit it will offer shoppers can be used on anything from groceries to a new bike, rather than just other video games.
“When we disrupt markets and compete, our customer wins,” said Duncan Mac Naughton, chief merchandising and marketing officer of its U.S. stores. “They’ll save money on video games and have the flexibility to spend it however they want.”
GameStop did not respond to a query for comment.
Investors appeared to think Walmart’s move spells trouble for GameStop, sending its shares down 3.7 percent to $38.30, while Walmart shares rose 14 cents to $74.82.
By MAE ANDERSON, Associated Press