GameStop unfazed by Wal-Mart's entrance in the used game market

CEO Paul Raines says "GameStop, of course, is a formidable competitor."

You might think that video game retailer GameStop would be worried about a mega-company like Wal-Mart entering the used game market, but it's not so. GameStop CEO Paul Raines said today during an earnings call that Wal-Mart's arrival to the market actually is a good thing for GameStop's business because it will drive greater awareness for the secondhand market overall.

"For years we have faced very strong big box and online competitors in that space and [we] expect that will continue going forward. I would point out that it is a great sign that in the category that large competitors return after previous attempts as they see that the preowned video game business has a lot of growth ahead," Raines said.

Wal-Mart's video game trade-in program started yesterday at stores across and country and online. This is the retailer's second attempt to crack the GameStop-dominated secondhand market, following an initial run in 2009.

Raines said a rising tide raises all ships.

"Consumers have low top of mind awareness of buy/sell/trade and new competitors will drive greater overall awareness of the category, which has always been very good for our business," he said. "GameStop, of course, is a formidable competitor in this space."

Raines also pointed out that 75 percent of trade-ins at GameStop immediately are applied to the purchase of new hardware and software, totaling an injection of $1 billion in 2013.

He said GameStop's relationship with publishers like Activision and Electronic Arts--which do not participate directly in the sale of secondhand products--remains positive because used games actually do positively impact the overall gaming ecosystem.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

49 comments
ZellyPoof
ZellyPoof

Not fazed? Well then they must be stunned retarded atm.

Yamitora1
Yamitora1

I looked into this, they're only accepting 15 game titles online. So for people with older games from like the PS2, its best just sell on ebay or amazon then to "recycle" it.

galacticturd4
galacticturd4

F*ck em both. I use neither. Amazon prime, boyee.

Deamon59
Deamon59

gamespot can suck my dck, i've hated them ever since i was a kid on my bday about to get gta san andreas as my present and the the employee tells my dad that's there's violence and shit in the game. my dad doesn't get it...  bday ruined, f u gamespot i still got the game on my own thu a friend

Nepti
Nepti

Actually, GameStop is likely very worried. And they should be.

MattyTheButcher
MattyTheButcher

I just like the fact that you can add video games to a wedding registry. 

Moun7ainMan
Moun7ainMan

Not fazed but still offering an extra discount for stores located near a Wal-Mart... lol GameStop

veryDERPY
veryDERPY

with walmart shit, they usually function when you DONT have to deal with the retards they hire. trading a game? ohhhh boy....

Kjranu
Kjranu

Why would you pay for a dirty, cum-stained box when you could pay five dollars extra and get a brand-new and more importantly ... clean box? 

robotpudding
robotpudding

They better be worried. Walmart's business model is pretty strong.

Neomaniac15
Neomaniac15

I've never had a good experience at a Wal-Mart. I wouldn't give them my business unless they were giving the games away. 

Pyrosa
Pyrosa

That's after a couple of days of breathing into a paper bag, sobbing on the floor of his executive-suite bathroom, worrying about all those risky investments he made with the ill-gotten gains of secondhand game sales...

johnnycontardo
johnnycontardo

This is all WONDERFUL news.


It's about time that Gamestop got their heads kicked in!


I hope that Gamestop looses HUGE revenue.


I remember when I used to bring in all my used games, and would not have enough to buy SHIT.


F*ck Gamestop.

jtmellon
jtmellon

No big deal you will get same crappy service from both places.  Wait in line at both + the upsell from Gamestop. 

kargion
kargion

Nothing like coming in on the used game market when its on its way out lol

Sarg1010
Sarg1010

Gamestop wasn't fazed...


But their investors sure were.

ToadstoolPeach
ToadstoolPeach

I refuse to give Wal-Mart my business.  Though I haven't stepped into a Gamestop in years.

IndremaLover
IndremaLover

There's still Gamestops?    For what purpose?

Aries139
Aries139

GameStop needs a competitor, their trade rates are horrible.

rawkstar007
rawkstar007

This is the largest and most cutthroat brick-and-mortar business in the world. No longer do you have the advantage of being the only physical location where people can sell their games quick-and-dirty, a major portion of your revenue stream.

I look forward to seeing you reduced to game rental machines in front of gas stations and grocery stores.

n0xinab0x
n0xinab0x

Not only can you trade them in for other games, you can do so for store credit in the form of a gift card. There's only so much you can get from a gift card at GameStop. I can trade in all my used games at Walmart and buy a deer rifle.....yay.

StryfeBringer
StryfeBringer

Unfazed?  Their stock really wasn't when it took a tumble right after the announcement that Walmart was entering into the second hand gaming market.

eternaldragoonx
eternaldragoonx

"I bought RYSE this morning and didn't like it can I return it?"
"No you can only trade it is for $11"
......"But I payed $59 4 hours ago"
"Not my problem, would you like to preorder anything today?"

aaaand this is why I havn't been to a gamestop in over 4 years.

Digital is the way to go this gen

BeefoTheBold
BeefoTheBold

I take Wal-Mart's entry into this market as a VERY GOOD thing for gamers even if I dislike the company in general.


After all, what better proof is there of the longterm viability of both physical media and a vibrant used game market than Wal-Mart choosing to get into it. The next time a company like Microsoft (or maybe it will be Sony next time) tries to restrict used games or require a fee or whatever other anti-consumer BS they tried when they were getting ready to roll out the XB1 and had to reverse course on that is intended to attack the used game market, it won't just be Gamestop pushing back on it.


It will be the 15th biggest company in the entire freaking world.


http://www.forbes.com/global2000/list/


And even beyond that, more competition = better prices for gamers selling back their used games and cheaper prices for buying used games.

tommynj
tommynj

They should be concerned. Walmart is very popular and known for their good prices. If Walmrt can give me a better deal off used games and trade ins then guess where I am going ?

dpclark
dpclark

@Kjranu

Please be sure to wipe off and disinfect your games before you sell them.

MattyTheButcher
MattyTheButcher

@Neomaniac15  well dont move to maine. Its basically walmart world up there. Some towns live in walmart on sundays. It has become the only business in some rural towns so its just where everyone goes.

hammoud
hammoud

@Aries139  Haha, I sold a bunch of old PS3 games because I am selling my PS3. I got like $26 for GTA5, about $3.50 for battlefield 3 and maybe $4.00 for AC3, and others. I sold about 7 games for 50 bucks. Best one was an amazing $0.03 for that Sports Champions game for the Move. I didn't care about the prices because I just wanted to get rid of them for whatever, but THREE cents for a PS3 game??? I'm pretty sure an empty Bluray disc in bulk costs more than that

Barighm
Barighm

@Aries139 They do have a competitor. It's called Steam. Why buy used when you can buy on sale?


Digital is going to be the thing that topples GameStop. Granted, you're more likely to find lesser known games at GameStop...

Namgis
Namgis

@rawkstar007  I haven't purchased a used title from GS in well over a year. Best Buy on the other hand. GS hasn't been the only kid on the block taking your money for a while now.

crimzonrazor
crimzonrazor

@StryfeBringer can you show were you got this info on the stock taking a tumble or did you pull it out of the air.

crimzonrazor
crimzonrazor

@eternaldragoonx One problem with your whole digital is the way to go, game data is huge now. Ps4 and xbox one only have a 500 gig hard drive. That means you can only get a couple of games on there before your full, then you have to wait to download a game everytime you decide you want to play something, and have to delete something else to make it fit. Digital SUCKS.

gamestoreguy
gamestoreguy

@eternaldragoonx  Spoken like someone that doesn't know what your're talking about.


"I bought Ryse this morning and I didn't like it can I return it?"


"Did you buy it new or used?"


"New."


"I'm sorry, due to federal copyright laws we are unable to process a refund on opened new media. You can trade it in for a base of $22 (as of Tuesday)."


"I remember now I did purchase it used."


"Ah, that's a different story.  You have 7 days with a receipt for a full refund or exchange for a different item.  What would you like to do?" 

PosiTVEMinD355
PosiTVEMinD355

@eternaldragoonx I wouldn't say Digital is the way to go this gen. Have you tried selling on ebay?  I usually get most of my money back there.   Then again...it is Ryse...

StryfeBringer
StryfeBringer

@tommynj Considering that there is a Walmart in almost every town in the US, Gamestop should be worried since they would have a greater market penetration compared to Gamestop.  Anyway, I'm sure they are scrambling behind the closed doors and just showing a brave face in public.

Aries139
Aries139

@Barighm @Aries139 I can only dream of my PS4 using Steam. The next best thing is PS+.

Never ever sell games to games to Gamestop, However they have a very good rental deal.

PSYCHOV3N0M
PSYCHOV3N0M

On PS4 you can upgrade your hard drive without voiding your warranty. You have little to no argument against PS4.