NEW YORK (TheStreet) -- Shares of video game retailer GameStop (GME) - Get GameStop Corp. Class A Report are falling after Wal-Mart (WMT) - Get Walmart Inc. Report announced that it had begun selling used video games in 1,700 of its U.S. stores.
WHAT'S NEW: Wal-Mart disclosed in a press release today that it had begun selling pre-owned video games in 1,700 of its 4,800 U.S. stores. In March, the retail giant had announced that customers would be able to trade in their used video games in return for store credit. Wal-Mart also disclosed in March that it planned to sell used games, putting it in direct competition with GameStop.
ANALYST REACTION: Wal-Mart probably won't prove to be a fundamental threat to GameStop, Wedbush analyst Michael Pachter told Bloomberg. Before consumers will trade in their used games to a retailer, they must have a relationship with the retailer, the news service quoted the analyst as saying. Many analysts agree with Pachter's contention that Wal-Mart is not a major threat to GameStop, Bloomberg added.
WHAT'S NOTABLE: Wal-Mart also announced that it will offer “Call of Duty: Advanced Warfare” 24 hours before the official release. The Day Zero Edition of Activision Blizzard's (ATVI) flagship franchise game will be available to customers starting at 12:01 a.m. local time on Monday, Nov. 3, Wal-Mart stated.
PRICE ACTION: In early trading, GameStop fell 4.5% to $39.89, while Wal-Mart slid 0.4% to $76.26.
Reporting by Larry Ramer.
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