NEW YORK (
is tanking in Monday trading following
announcement that it will begin selling used video games.
, that it will allow video game trade-ins this summer, offering gift cards for used video games.
The move, of course, is a direct blow to GameStop, which holds a massive chunk of the used-gaming market. The company previously said used sales have had an annual growth rate of 22% over the last four years, but this will surely slow as Best Buy enters the playing field. As a result, shares of the stock are tumbling 8% to $20.16 in afternoon trading.
GameStop has also faced increasing pressure from discounters like
, which continue to steal market share.
Not even promising developments coming out of this week's
Electronic Entertainment Expo
, or E3, seems to be saving GameStop.
Thus far at the conference,
has shown off Kinect, a motion-gaming device that will allow gamers to control on-screen action with body movements. The device will launch just in time for Christmas on Nov. 4.
There will also be a slew of video games coming out of
-- Reported by Jeanine Poggi in New York.
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