NEW YORK ( TheStreet) - GameStop's ( GME) stock is tanking after Wal-Mart ( WMT) announced it is cutting prices on video games.

On Wednesday, the discount behemoth said it is offering a 15% to 25% discount on top 25 video games, including Mario & Sonic at the Winter Olympics and Madden 2010.

It will also reward shoppers who purchase a Nintendo Wii console with a $50 gift card.

As a result, GameStop is tumbling 8.5% to $21.83 in morning trading. Shares of Wal-Mart are flat at $54.74.

While no hard data is available, investors feared sales of video games were not as strong as expected over the holiday weekend.

-- Reported by Jeanine Poggi in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

If you liked this article you might like

Lockheed Martin, Raytheon, Activision Blizzard: 'Mad Money' Lightning Round

Shrug Off The Apple-FANG Bite: Cramer's 'Mad Money' Recap (Thur 9/14/17)

As Target and Walmart Move Away From AWS, How Much Pain Will Amazon Feel?

GameStop CEO Buys More J.C. Penney Shares After Massive Plunge