Exclusive: Best Buy Gunning For GameStop Marketshare, Launching "Best Buy Gaming" Stores
It’s been a few years now that Best Buy (BBY) has been dipping their toes in the used game sales pool. And now it looks like the Richfield, Minnesota based brick and mortar retailer is about to completely jump in. Their goal: to take as much of GameStop’s market share in the bustling used game sales industry; and considering what they have planned they may just pull it off.
Last year was filled with record sales for GameStop (GME) — the king of used game sales across the board. They finished off their fiscal 2010 with 9,47 billion in sales, a 5% increase from the same time a year prior. Over 1/5 or a whopping 21.8% of that record year was made up by used games sales which translates into a staggering 44.2% of gross profit. This is a piece of the pie that Best Buy wants, and they’re about to get as aggressive as ever to attain it.
We’ve received word from high ranking source within company of how exactly this will work. If you’ve ever been to the retailer then you already know that they have designated store-within-a-store sales and services areas; whether it’s Best Buy Mobile for cell phones or Geek Squad for installations, computer and home office technical support. Now they’ll have something similar, except geared completely towards video games.
Enter Best Buy Gaming.
In this new area of the store, Best Buy will be placing “specialists” who will know a thing or two about games. They’re going as far as hiring “gaming supervisors” who will be designated to oversee the new section in each of their stores. We’ve already seen somewhat of a gaming push in Best Buy stores as of late with some locations going as far as installing DLC kiosks and others being involved in used game sales for some time now.
The retailer will now be jumping into the used hardware business, as well. They’ll be offering more incentive and higher trade in values than GameStop for your used games and hardware offering either cash back or the option of an additional 20% kick back if you decide to take a Best Buy gift card instead, which can be spent on anything else in the store. Hopefully something like this can actually help bring some serious competition to the used games market, and in turn bring trade values up in favor of the consumers instead of the other way around.