Walmart To Start Video Game Exhange Program
MIAMI (CBSMiami/AP) - In the coming months you may be able to trade in your used video games at your local Walmart.
For the first time, the world's largest retailer will be accepting thousands of video games at their brick and mortar stores in exchange for store credit which can be used in both Walmart and Sam's Club stores.
It will also offer refurbished used games in its stores for the first time.
Retailers from Amazon to Best Buy also offer used video trade in programs. Walmart's new program is the biggest threat to GameStop, which has the largest and most well-established video game trade-in program.
GameStop shares fell $1.84, or 4.6 percent, to $37.89 in morning trading. The stock had been down 19 percent since the beginning of the year.
But one analyst said the new program isn't necessarily a death knell for GameStop. Other retailers have tried to take business in the used game market with "modest" success, said Baird Equity Research analyst Colin Sebastian. In contrast, GameStop has consolidated its market share of video game retail sales and has loyalty among video game customers and a broad inventory of new and used video games.
Walmart has been seeking new ways to boost revenue as its low-income customers remain under pressure due to a weak jobs picture and shaky economy. In its most recent fourth quarter, net income dropped 21 percent.
"Gaming continues to be an important business for us and we're actively taking aim at the $2 billion pre-owned video game opportunity," said Duncan Mac Naughton, chief merchandising and marketing officer for Walmart U.S.
The value for each trade-in video game will vary by the title, console and age of the game. The amount will range from just a few dollars for older games to $35 and more for newer ones. Credit offered for video games can be used on anything from groceries to a new bike, rather than just other video games.
(TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)