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.

From other sites
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
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs