Analyst: Wal-Mart game trade-in kiosks are no threat to GameStop

Signal Hill analyst Todd Greenwald doesn't believe Wal-Mart's new automated game trade-in program will pose a threat to GameStop, calling the new kiosks "more of a traffic driver to Wal-Mart's stores ... than something that will take meaningful share from Gamestop's core consumers."

Greenwald believes that the instant-gratification factor of GameStop's trade-ins will insulate the chain from losing its market to Wal-Mart's machines. He also said that the credit offered by the kiosks "doesn't seem to be significantly higher than what GameStop is offering to pay."

He believes that these Wal-Mart kiosks are just the first of many such automated movie and game kiosks to appear in the near future, some of which, he expects, will not just buy and sell, but also trade products. Despite the oncoming competition, Greenwald calls GameStop "nearly bullet-proof," explaining that the company has several thousand copies of 50 Cent: Bulletproof. Okay, he didn't actually say that last part.

[Image via Neocrisis]

Reader Comments (23)

Something Wall-Mart Comes This Way

of Course not....everyone knows that Wal-mart is the Star Fleet of the used game business and GameStop is the BORG....

Your reservation is futile.

until they realize that gamers go to other places to shop for food, cheap clothes, random things for the house and realize they can do almost anything there. Sorry gamestop by I see this as a real threat since walmart has some pretty heinous tactics when it comes to throwing the rug from under their competitors.

Not a threat yet...until they awaken next year and arm themselves!

[1997] Analyst: Wal-Mart no threat to Strawberries and other muic stores

oh shi-

it's not enough they shut down music stores and game stores, now they are shutting out strawberries, too? what's next? oranges? grapes? WHEN DOES IT END

KB Toys has gotten the axe in many places because of Wal-mart too...

Walmart and Gamestop. Its like the Screw Tape Letters...

Gamestop vs. Walmart is like the BORG vs. The Empire

walmart just likes to ride the ideas of other stores ,i hope someone somewhere file a major classaction suit against them or that they go broke.fucking hate walmart mom &pop store killers .hope they fail .( go target ,go gamestop ).

"...doesn't seem to be significantly higher than what GameStop is offering to pay."
So, he's confirming that it IS higher than what Gamestop pays.
Plus he says that trading games at Gamestop offers "instant gratification." How can the kiosk not offer instant gratification? Shouldn't it be MORE instant (and more gratifying) than having to wait in line and have a guy ask you "while you're here, would you like to reserve Crapstorm?" while he checks your game for scratches and takes your drivers license info?
I assume the kiosks can check for scratches automatically, and that the payout happens after the game is authenticated and proven scratch free. I don't see how Gamestop has an advantage, even if the kiosks dispense the payout on Wal-Mart gift cards.

I'd like to think feeding my old games to a computer rather than dealing with a horrible gamestop employee would be enough "instant gratification" to last me a lifetime.

That's if you can get those asshats to acknowledge you even exist in the 1st place.

how do the kiosks work? couldnt you just scan a case with a blank cd?

If you don't like Gamestop employees, then maybe you should shop somewher-

Oh wait, you can't. So shut up ;)

Seriously though, dealing with a machine has many more downsides in my opinion. I can deal with a guy behind a counter trying to make me buy a magazine or reserve a game, but it could be irritating having a machine say a game is "too scratched" when it is flawless, or showing up as an incorrect title. At least you can point these things out to a human employee. And what happens when the machine makes a mistake and you find out afterward? Might be somewhat difficult to fix any mistakes.

I think I'll use the age-old solution to the trading in system. Only buy games worth owning :)

Kris, after reading your comment I think I would like to pre-order a strategy guide and a disc cleaning kit from you. Also, I would be interested in a used copy, sure.

I'm conflicted. On one hand, I hate Gamestop. On the other hand, not only do I hate Wal-Mart, but I can see that the Wal-Mart empire will assist in bringing about the apocalypse.

But just this one time, I'm going to side with Wal-Mart and hope they utterly destroy the shitpile that is Gamestop.

Does this mean instore credit for trade ins?
Watch out guys, if you seem to start missing some games and start finding some new patio furniture outside, its the wives at work!

Listen to this man because not only is he a genius, he can also see the future, (and everyone better start alarming their shit). Thanks for the laugh !!

I've been doing a lot of video game buying at Wal Mart lately. It seems like they stock a lot of stuff that no one else is stocking. And the prices are good, too. And have you seen their bargain bin games? You can get some real gems in there. Legend of Kage 2 for 10$? I even found a brand new copy of Boktai 2 for the GBA recently.

Gamestop offers me only the smell of body odour and surly employees. I say huzzah to Wal Mart.

This really is no threat to gamestop.

I goto gamestop because most of the ones by me are in small strip malls, where you can park right out front, go in, get your game and be gone all in less than 3 minutes.
Going to my local walmarts is an adventure, the places are a wreck, the people are trashy, you have to park far or have your cars paint damaged, and it's a ton of walking.

Analyst: Wal-Mart game trade-in kiosks are no threat to GameStop

Reader Comments (23)

Posted: May 20th 2009 6:19PM Uncle Jesse said

Posted: May 20th 2009 6:25PM Chris DPSN AggieCEO XBLThe Aggi said

Posted: May 20th 2009 7:18PM Bubbameister33 said

Posted: May 20th 2009 6:26PM gotjpeg said

Posted: May 20th 2009 6:36PM Shagittarius said

Posted: May 20th 2009 6:39PM DigTheDoug said

Posted: May 20th 2009 6:44PM cbarrentos said

Posted: May 20th 2009 8:44PM Chris DPSN AggieCEO XBLThe Aggi said

Posted: May 20th 2009 6:45PM The Wicker Man said

Posted: May 20th 2009 6:53PM micheal82 said

Posted: May 21st 2009 3:04AM kmcroc said

Posted: May 20th 2009 7:06PM Brendan H said

Posted: May 20th 2009 9:31PM (Unverified) said

Posted: May 21st 2009 1:20AM PARANOID365 said

Posted: May 20th 2009 7:07PM Lbhocky19 said

Posted: May 20th 2009 11:08PM krisr2005 said

Posted: May 20th 2009 11:39PM ImSteevin said

Posted: May 21st 2009 12:32AM darkinchworm said

Posted: May 21st 2009 1:26AM PARANOID365 said

Posted: May 21st 2009 12:42AM pibs said

Posted: May 21st 2009 1:25AM PARANOID365 said

Posted: May 21st 2009 7:15AM (Unverified) said

Posted: May 21st 2009 3:48PM jcar302 said

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