Analyst: Walmart may expand used market

Retail giant Walmart is getting “more serious” about used game sales, analyst Colin Sebastian writes in a research note sent out yesterday. According to Lazard Capital Markets’ “industry checks,” an estimated 500 Walmart stores across the US have began in-store sales of pre-owned videogames, a move that may “ultimately expand the market for used games.”

The retailer is expected to put their focus on games worth $20 and less.

“Used is a more profitable, but more demanding, category,” Sebastian writes. “We believe that the barriers to establishing a robust and profitable used video game business are fairly high, including dedicated systems to track and manage used inventory and pricing, the ability to refurbish products and restock stores to balance supply, and compliance with numerous municipal codes.” That said, Sebastian isn’t expecting competing stores to offer a service “as tightly integrated as GameStop’s network of thousands of stores.”

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