Walmart, the largest retail chain in the U.S, has decided to extend its trade-in program to include used copies of video games. This trade-in program, which already includes used smartphones and tablets, will allow customers to trade in old games for in-store credits. This move can be considered a major step into the foray of video game business for Walmart. Currently, Gamestop is the most popular chain known for offering a trade-in program involving video games.
In the past, video game publishers have tried their best to impede the progress of the opportunities to trade-in used copies of video games. These publishers cite potential monetary losses as a result. Despite this, used game products are responsible for 2.4 billion dollars in sales globally for Gamestop as of the 2013 fiscal year. The U.S alone was responsible for 1.6 billion of that global amount. According to the company’s financial reports, these used games figures make up more than 27 percent of its total sales.
Although this move by Walmart will no doubt please many, there are potential challenges to face when implementing this new program. Much like Gamestop, Walmart will be responsible for determining fair trade-in values for these games. Retailers often face complaints about unfair trade-in values, with consumers feeling that they are receiving less than what they want to be owed. With Walmart’s new trade-in program, however, consumers might expect higher trade-in values for their used video games. This would come as a result of the potential threat posed towards retailers such as Gamestop, who has been the flagship brand for used-games.
With video game publishers realizing that there isn’t much to do about used games at the time, Microsoft itself axed a program which would have given publishers free reign over used titles, Walmart should find itself in a good position for the trade-in program. The announcement from Walmart is expected to implement this plan starting March 26th.