Walmart Launching Used Video Game Exchange18 Mar, 2014 By: Erik Gruenwedel
Walmart March 18 announced it is bowing a used video game exchange program in an effort to grab a share of the $2 billion pre-owned gaming market.
Starting March 26, consumers will be able to trade in their video games and apply the value immediately toward the purchase of anything sold at Walmart and Sam's Club, both in stores and online. The traded-in games will then be refurbished and made available for purchase in like-new condition starting this summer.
Available at more than 3,100 Walmart stores nationwide, the trade-in service will accept physical games for consoles such as PlayStation 3 and Xbox 360. Trade-in values will vary depending on market demand of titles and their condition, including original packaging, among other criteria.
“This is a new category for us and something our customers have been asking for,” Duncan Mac Naughton, chief merchandising and marketing officer for Walmart U.S., said in a statement. “Ultimately, when Walmart disrupts markets and competes, our customer wins.”
Walmart contends there are more than 880 million used video games in U.S. homes. Used gaming is a principle revenue driver for GameStop — the nation’s largest video game retailer. Best Buy also deals with used games.
Indeed, news of Walmart’s entry into used games sent GameStop shares down 5.5% in premarket trading March 18. Best Buy shares were down less than 1%.
“While new releases will remain the focus of our gaming business, we’re glad to give our customers the option to buy pre-owned games,” Mac Naughton said.