Walmart has its sights set on GameStop and its dominant share of the $2 billion used video gaming market. That's the conclusion that one might draw from the retailer's announcement that it is expanding its video game trade-in program from its website to include Walmart stores and Sam's Club locations.
Customers interested in the trade-in program will bring their working video games in its original packaging to a Walmart or Sam's. Associates will evaluate the condition of the game and then provide a trade-in value. If the customer accepts, the store will provide the amount in an eGift card that will work in the chain's locations and on its websites.
"When we disrupt markets and compete, our customer wins," wrote Justin Williamson, director, entertainment, Walmart, on the company's blog. "Our strategy is to pay more for used games, sell new and used games for less, and give our customers the flexibility to spend their money how they want."
Walmart intends to begin selling "Certified Pre-Owned" games by the summer.
Walmart and Gamestop are not the only retailers offering trade-ins on video games. Amazon, Best Buy, eBay and Target are also pursuing the opportunity.
Anthony Chukumba of BB&T Capital Markets, per CNBC, wrote in a note to investors, "We do not believe Wal-Mart will have a material impact on GameStop's dominant used video-game market share."