Wal-Mart to buy and sell used video games
The king of retail will sell games, hardware and even used DVDs at 5 test locations.
Wal-Mart (WMT) is looking to jump back into the used PlayStation, Wii and Xbox business.
Specifically, Wal-Mart has entered into a lease agreement with a small retailer called Game Trade to test used-video-game sales, buybacks and trade-ins in five stores.
This isn’t the retail king’s first foray into the used video-game business -- but there are a few reasons to think this venture may succeed where others failed.
First, Wal-Mart kind of halfheartedly jumped into used game retailing in early 2009. The store stuck 77 kiosks in its stores that scanned a used video game's bar code and then added a credit to the customer's credit card. The problems with that are obvious -- not the least of which is the fact that many gamers trash their original packaging and are left with just a software disc and no bar code.
- Related: Five reasons to buy Walmart stock
Second, Wal-Mart is going whole hog with the resale of hardware as well as software, and is even going to offer the resale of DVDs and Blu-Ray discs. Post continues after video:
A recent Newzoo Games Market Report estimates that a full 46% of video-game sales involve used software, meaning this is an incredibly lucrative segment of the $25 billion market.
There are, of course, a few obstacles. Gamestop (GME) is a clear leader in the industry and won’t be unseated easily. Another difficulty is that video game sales in general aren’t as strong as they once were.
But who knows -- Wal-Mart may have learned from its previous venture and see success in test markets. If so, expect to see used video games on sale at a Supercenter near you later this year.
Copyright © 2014 Microsoft. All rights reserved.
Stocks are facing some serious resistance as the bears tear into the market's respite.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.