Best Buy enters used games market
US retailer trialling kiosks to trade-in videogame product
US retailer Best Buy has entered the used games market and is trialling kiosks that allow users to swap old games for in-store credit.
The system is similar to that employed by Wal-Mart, and analysts believe that rather than take share from the second hand market, it is likely to help increase sales to as much as USD 3 billion annually.
"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 speciality channel," wrote Colin Sebastian of Lazard Capital Markets.
"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," added Sebastian.