Walmart Tries to Prove It's Got Game
NEW YORK (TheStreet) -- Shares of Wal-Mart Stores
The stock is down 4% for three months, nearly 5% for the year to date and 7% since the beginning of December. Shares are currently at $74.75.
Even less attractive have been the images presented to TheStreet's readers by Rocco Pendola.
Walmart may not be able to exchange its image at the moment, but on Tuesday it announced you can now come in and exchange your used video games. This is a $2 billion industry that is currently dominated by, among others, GameStop
Beginning March 26, Walmart customers may bring in used video games from popular consoles like Microsoft's
Unlike similar trade-in programs, Walmart won't offer cash for the exchange at more than 3,100 stores, but customers can use the credit towards online Walmart purchases such as mobile devices. Walmart also plans to send those games traded in off for refurbishing and sold "like new."
If this sounds like a pawn shop, it's because pawn shops operate under a similar models. Blockbuster also tried this trade-in tactic and it failed. Both Amazon
But given Walmart's dominance across the U.S., there is a strong market for what the company might be able to produce, which will help revenue.
There may be an element of "so what" here. But before you knock this idea, consider that Wal-Mart posted $11.9 billion in revenue for all of 2013. The pre-owned gaming market is said to be a $2 billion industry, which represents 16% of Wal-Mart's annual revenue.