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Wal-Mart taking on GameStop, will soon accept video game trade-ins

US retailer hoping to "shake up" the secondhand market; trade-ins will start March 26 while inventory should be widely available this summer.

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Watch out, GameStop, you have a new competitor in the used game market. Wal-Mart announced today that it will begin accepting video game software trade-ins at 3,100 stores nationwide on March 26.

During a conference call attended by GameSpot, Wal-Mart merchandising chief Duncan Mac Naughton said Wal-Mart is hoping to "shake up" the secondhand market and steal some marketshare away from competitors like GameStop.

There are 880 million video games sitting in homes today, Mac Naughton said. And according to a cited NPD report, 80 percent of these games, or more than 700 million, are rarely played. Clearly, there is a market for second-hand games, just look at GameStop's quarterly revenue for evidence of that. But why trade these games in at Wal-Mart instead of GameStop or Best Buy?

No Caption Provided

Wal-Mart's "true differentiator," Mac Naughton said, is that you can use your in-store credit for purchases outside of gaming like food and clothing. Indeed, GameStop can't compete there. But unlike GameStop, Wal-Mart will not have a cash option for trade-ins. It's credit or nothing. And on top of that, Wal-Mart will only accept games, not hardware.

Wal-Mart will accept all games (provided they are not scratched or damaged beyond repair) and refurbish them via a third-party company. These games will then be sold at stores and online with a "certified pre-owned" label on their packaging. Wal-Mart expects to have a solid inventory of secondhand games available this summer.

GameStop has its own dedicated refurbishment center in Grapevine, Texas and it is this very operation that management believes sets GameStop apart from competitors. We've reached out to Gamestop for comment on this story but we have not heard back.

Just because Wal-Mart is getting into the used game market, it doesn't mean the company is backing away from new games anytime soon. The company's new release business will "remain a focus" for Wal-Mart going forward, Mac Naughton said.

But why get into the secondhand market now, in 2014, when an increasing amount of attention is paid to download services? It's a question we poised to Mac Naughton and he said Wal-Mart isn't worried because bandwidth into homes is still an issue for many. Still, he explained that Wal-Mart is indeed eyeing the digital market as a future growth opportunity.

"We think being on the shoulders of disruptive tech is good," he said. "We're ready to grow into digital as that business emerges."

Wal-Mart's move into the used-game market will also conceivably affect publishers like Electronic Arts and Activision, which do not participate in second-hand sales. We've also reached out to these companies, but have not heard back. We'll have more in the future.

Finally, though Mac Naughton never mentioned GameStop by name during the call, he said Wal-Mart's aim with its secondhand program is to "pay more than anybody else" for your old games. Of course, trade-in prices will vary, but he said the average price paid per title should be around $35.

Here's how Wal-Mart's used-game program works:

  • Customers bring their working video games, in the original packaging, to the electronics department.
  • Associates scan the UPC code on the case and evaluate the game for obvious damage such as deep scratches or cracks.
  • The customer is then provided with a trade-in value for each game to accept.
  • The total value accepted by the customer is awarded immediately and can be applied at checkout in a Walmart store or Sam’s Club, or online at Walmart.com or SamsClub.com

Got a news tip or want to contact us directly? Email news@gamespot.com

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deactivated-5e90a3763ea91

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I would be sad if my local Gamestop closed down. People can say what they want about Gamestop, but they've always carried a better variety of new games than your average retail stores. And people only have themselves to blame when they spend money on a game and then turn around and sell it later.

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comb5

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<< LINK REMOVED >> The two gamestops where I live never have any variety. They have a small back catalog of games and then dozens of copies of new releases lining the wall. There's a local gamestore that's actually bigger than gamestop and has everything from retro to new releases.

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maximo

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<< LINK REMOVED >> I just think that the money should stay with the developers and not go into gamestops coffers That's just me though. Not sure what value gamestop are adding to the industry from a technical standpoint.

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drknessfeeds

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My local WalMart tried this before a couple years back and it was a flop for then.

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gf61

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Sad

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King_Icarus

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Nothing will change I guess

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Yomigaeru

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Maybe this means Walmart will have a decent selection of games for once?


...who am I kidding? I still won't shop there, since Amazon/Ebay/etc. already exist. Why not just buy your used games from another gamer if you're going to go that route, right?

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thekorican

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This is what they call the nail in the coffin for Gamestop. I'm sure every publisher and developer has given Walmart the green light to do this. Once Walmart does this Gamestop is done. The only reason I was buying games from Walmart instead of Gamestop was because they didn't accept trade-ins.

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Skcorpion86

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This isn't good! Developers make ZERO money from used games sales, expect the prices of games to go up. Also expect less AAA games. Some game studios don't make enough money as it is, I promise this hurts gaming more than it helps it.

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mikedee1

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<< LINK REMOVED >> So, when someone sells their used car does it hurt the car manufactures?

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oxeater

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<< LINK REMOVED >> Most developers plan on making the majority of their money within the first couple of months. Once a game has been bought they should make enough money off of the amount of copies sold to have a profit, anything after that is gravy. Companies saying that used copies are bad just want extra money but the money they made on the new copies should be enough.

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Yomigaeru

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<< LINK REMOVED >> The money issue is more a problem of developers spending way too much on development, and thus needing unrealistic sales to make a profit.

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Stebsis

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<< LINK REMOVED >><< LINK REMOVED >>People are complaining devs spending too much money on development, and then people complain when they don't look next gen enough or innovate all the time... It takes money to make games and to let people know these games exist

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chev9342

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<< LINK REMOVED >><< LINK REMOVED >><< LINK REMOVED >>Those people are call graphic whores, not gamers.

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Saul_Ed_Snake

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<< LINK REMOVED >><< LINK REMOVED >>Exactly. Take a look at games like Tomb Raider. The reboot, which I thought was very well done, sold 3 million copies in it's first few weeks and it was deemed a failure by the publisher. Dev costs and expectations are too high by some AAA devs.

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chev9342

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It isn't going to be like GameStop where they only give you a 1$ for two games? Also, "all games," meaning any platform?

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aTornSock

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Well, this looks like we'll have less chance of the digital market ever being competitive. Sony and MS are too scared to mess with Walmart.

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northshire

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Although buying new is obviously better for the game maker, having serious competition might make game selling giants like GameStop think twice before charging $55 for a used game. So it helps the players at least.

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nightsinner

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I usually only buy used/discounted games. Gamestop's prices are horribly inflated. Amazon and ebay usually have the best prices. Hopefully this will give gamestop some incentive to lower their used game prices.

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Yomigaeru

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<< LINK REMOVED >> Agreed. Private sellers are the way to go if you're going to buy used, and you'd be hard-pressed to find a place with a better selection than Ebay or Amazon.

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adub424

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I personally love buying single player games second hand they just don't have the same value as a multiplayer game does. Why pay $60 day one when you can just wait a week and get your single player stuff for less.

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Saul_Ed_Snake

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<< LINK REMOVED >> Kinda agree there, but I will sometimes shell out the extra dollars if there's some worthwhile content included with a new purchase, but that's not very often.

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adub424

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<< LINK REMOVED >><< LINK REMOVED >> I get what you are saying. Worthwhile content is often released as DLC instead of chain exclusive. I have mixed feelings about preorder bonuses sometimes they make the game too easy in the beginning.

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mikemaj82

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Every one beats GameStop when it comes to used games. I was in a Gamestop the other day and the used versions of newer games that came out were $54.99 instead of $59.99. Really? lol. At places like Best Buy you can't find any used games for more than $40.

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Saul_Ed_Snake

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"But unlike Gamestop, Wal-Mart will not have a cash option for trade ins."

I don't know about the US, but where I live in Canada, Gamestop does not offer cash for trade ins. Store credit only.

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TabularBeast

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I do live in the US, in California to be precise, and they do offer cash back if you wanted but at a lower value then if you were to get store credit. Ex. $15 store credit could be $10 cash back.

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Saul_Ed_Snake

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<< LINK REMOVED >> Ah, I see. We have a Microplay here where I live that does something along those lines, but they're a dying business in my area, only 2 spots left in the entire city compared to the 50 or so Gamestops.

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Link3301

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Let's just hope they don't live up to their "slogan" of always low prices in this area.

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oxeater

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<< LINK REMOVED >> Which should be enough, it's stupid to think companies should get extra money every time a same copy of a game is sold.

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oxeater

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<< LINK REMOVED >><< LINK REMOVED >> I don't think you know what you are talking about, intellectual property is when a company or person has an idea of a product, whatever it may be and owns a trademark to it allowing them to sell it and make money. It's not like when they sell a copy of the game they also sell the right to make the same game, that is copyright infringement. Also the maker of the game does get a percentage of the price of the game (royalties) but after that the person who bought the property owns the physical copy of the game, they can sell, trade or even destroy it if they want to but they do not own the IP. Once a copy of a game has been sold that's it, the company made it's money and should work on selling more copies to maximize profit.

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demonkingx5

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<< LINK REMOVED >> Like people who pirate

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adub424

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<< LINK REMOVED >><< LINK REMOVED >> All Hail the master race.

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lomar07

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Best Buy started doing it a while back too, they have cheaper used games than Gamescam.

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istuffedsunny

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If you thought Gamestop ripped you off...

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tzolynski

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<< LINK REMOVED >> As cut throat of a company as wal-mart is i doubt there will be good deals laying around.... Or they will give you nothing for your games and sell them cheap. It never works both ways for the consumer.

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Lhomity

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You will always get a better deal in a private sale, or online auction site such as eBay.


While Wal-Mart may have the ability to put a dent in GameStop's business, the already-evident long-term effects the mass retail used game market has on smaller studios, the continued decline of story-driven single-player experiences, the continued exodus of smaller businesses moving to purely digital distribution and even more to social and mobile development - makes this kind of news extremely depressing.

Developers cannot compete with the retailers they rely upon essentially cockblocking them at the checkout. This is exactly the kind of business strategy that further narrows the viability of games to the already profitable AAA game publishers who can afford to get by. In other words, AAA will continue to survive, but you'll see less and less of everything else on shelves.

But hey, at least you'll save a few dollars on a used copy.

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Maui_Lion

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<< LINK REMOVED >> eBay is great for games you can't find anymore. I scored a used copy of 4 Warriors of Light for 20 bucks.

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EdAl2112

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If there is one thing you can count on is Walmart's ability to destroy other businesses. :)

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Xirtahm

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As much as I hate Walmart with a passion, I sorta hope such competition will help drive down used prices.

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zzamaro

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<< LINK REMOVED >> Well, there's a lot of competition on new games and Walmart still doesn't offer great deals on new games.Hopefully they do for used games.

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AkureiRyu

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People are bitching and complaining about Gamestop like they forced them to trade their games to them. If you want more for them than what Gamestop is offering, take your games back and sell them on eBay or craigslist.

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CeltaVigo

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maybe now ill get more than $10 for a game that came out 2 months ago. it'll at least piss me off less if I come back the next day and see the same game being sold for less than $45.

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Xenro4

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YES!

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