This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Walmart Tries to Prove It's Got Game

Stocks in this article: WMT GME MSFT SNE AMZN TGT

NEW YORK (TheStreet) -- Shares of Wal-Mart Stores (WMT) have taken a beating since the start of the year.

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 (GME).

WATCH: Jim Cramer Prefers Take-Two, EA to Walmart and GameStop

Beginning March 26, Walmart customers may bring in used video games from popular consoles like Microsoft's (MSFT) Xbox 360 and Sony's (SNE) PlayStation3. Customers will receive a store credit, which can be used at Walmart and Sam's Club stores.

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 (AMZN) and Target (TGT) have begun playing this game.

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.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs