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GAMING BLEND

Best Buy Enters The Used Game Market

Author: Mark Barley
published: 2009-06-23 18:51:21
GameStop should start feeling the heat in the used games market. Massive electronics retailer, Best Buy, has announced that they will start a trial period or in-store kiosks set up where you can trade your used games in for store credit and buy used games.

Best Buy joins the ranks of Wal-Mart and GameStop as major retailers who have invested heavily into the used game market. Finally, we may start seeing a decrease in price of used games, and more money for your trade-ins. Analysts predict that the used game market could rise to $3 billion annually with Best Buy's addition to selling used games.

Colin Sebastian of Lizard Capital Markets told GI.biz that "While we believe that Best Buy’s entry into the used video game market will create a new overhang on shares of GameStop...We expect Best Buy’s initiative to expand the used videogame market rather than take significant share from the specialty channel."

He added that “We estimate the size of the commercial used videogame market in the USD 2.5 billion range worldwide, continuing to grow, driven by major players including GameStop, Game Group, Game Crazy, and Internet marketplaces such as eBay and Amazon.”

Even if these kiosks are in a limited number of stores, the program could expand over time. It's another potential dent in Gamestop's dominance of the used game industry. Every person that has traded in a one month old game and gotten only $25 in return should be rejoicing in this news.


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