Ripple effects from Wal-Mart's used game play


Shares of GameStop (GME) drop in early trading after Wal-Mart announces it will launch a used video game exchange program.

GameStop's used game business is vital to the company as it generates higher margins than the new game model. That could get trickier with the retail beast from Bentonville in the mix.

GME -5.5% premarket

Shares of Best Buy (BBY) are down 0.6% as the company also has a little skin in the used game market.

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Comments (1)
  • Chip Oat
    , contributor
    Comments (67) | Send Message
     
    Wal Mart is now the largest grocer in the country, but other grocery chains still exist (it was always a tough business, anyway).

     

    This isn't great news for GME, but not everyone goes to Wal Mart so the store credits may not be a huge incentive.

     

    The digital download evolution, overblown or not, still seems like the bigger threat to GME than WMT.
    18 Mar 2014, 01:35 PM Reply Like
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