After years on the sidelines, discount retailer, Walmart will finally start accepting pre-owned video game trade-ins. While some might see this a direct threat to GameStop’s used game empire, the bargain-friendly big box is taking a slightly different approach. Customers who sell their old games to Walmart will only receive store credit, while GameStop offers the additional option of a reduced cash value.
Next week, 3,100 Walmart stores across the US will begin accepting game trade-ins, the company announced on a recent conference call. Representatives said that a game’s value will change with age and popularity, similar to how other retailers accept pre-owned games. The company estimates that $35 will be a common value for used games.
During a Q&A session, the topic of offering cash for used games came up, which executive vice president, chief merchandising and marketing officer for Walmart, Duncan Mac Naughton replied “[customers] would get a credit at Walmart which I would argue is just like cash.”
Further differentiating Walmart’s setup from GameStop’s business model is the fact that the mega-chain will not be accepting game consoles or accessories. Walmart says it sees the $2 billion pre-owned video game market as an opportunity.
It’s been highly publicized that some game publishers aren’t too keen on the idea of people buying and reselling their intellectual properties multiple times, however when asked about feedback received from game studios, a Walmart rep said “they’re excited.”
It’s too early to say whether or not Walmart’s new program will have a serious affect on GameStop’s hold on the pre-owned game market. Keep in mind that other retailers like Best Buy and Target have also entered the used game business, but make no mistake about it, GameStop still remains top dog.
We’ll have to revisit this situation later in the year when these companies further divulge their financial progress.