Amazon takes shot at GameStop, starts accepting videogame trade-ins

Summary:Amazon said today that it would allow shoppers to trade-in used video games for store credit, a move that may challenge a core business of GameStop, the biggest U.S.

Amazon said today that it would allow shoppers to trade-in used video games for store credit, a move that may challenge a core business of GameStop, the biggest U.S. video game retailer.

Amazon has already launched the beta version of what it calls Amazon Video Games Trade-In. Users can send in used games and get an Amazon.com credit, including an additional 10 percent bonus toward items in Amazon's online videogames store.

Amazon says more than 15,000 titles are already eligible for trade-in.

Shares of GameStop had risen 35 percent in the past three months as sales of video game consoles by Nintendo, Sony Corp and Microsoft remained robust, thus driving consumers into GameStop stores games to buy software for their systems.

However, GameStop's profit margins have remained stable thanks to an active trade-in system, where shoppers return used games for a fraction of the purchase price or credit toward future sales. (The returned games are sold at a higher profit margin than new games.)

Shares of GameStop fell $4.04 to $23.26, while Amazon shares were off 31 cents at $64.50.

Topics: Mobility, Amazon

About

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. He is also the former editor of SmartPlanet, ZDNet's sister site about innovation. He writes about business, technology and design now but used to cover finance, fashion and culture. He was an intern at Money, Men's Vogue, Popular Mechanics and the New York Daily Ne... Full Bio

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