Amazon’s Game Trade-In Service Encroaches On GameStop’s Territory

You really have to give it up for the evil genius that is GameStop.

Here’s a company that makes nearly half its profits reselling used games at a price 4 to 5 times higher than the amount paid to the gamers who pawned them. Add in the fact GameStop’s financial clout allows it buy out seriously threats and bulldoze the rest, and it’s easy to see why gamers have no choice but to accept “The Man” of video game retail as a necessary evil.

However, Amazon’s new game trade-in service may have what it takes to loosen GameStop’s grasp on the second-hand game market, offering players better compensation for every disc or cartridge and only requiring a trip to the mailbox instead of the mall. And after its first day of operation, the service has already stock shocked GameStop’s investors.

Trading this game in at GameStop means publically acknowledging that you own it.

GameStop stock prices fell 13% on Thursday, each share depreciating a full $3.54 before the closing bell. This was after GameStop CEO Dan DeMatteo told “Edge Magazine” Amazon’s chance of succeeding at this venture hovered somewhere between nil and not happening.

Whether GameStop’s decline is a temporary coincidence or a permanent dose of karma remains to be seen. However, Amazon’s done a helluva job stacking the deck in its favor.

Gamers ship whatever titles they want to trade in directly to Amazon, courtesy of free, printable pre-paid shipping labels. They’re then compensated in Amazon gift cards, at rates a few dollars higher than GameStop’s payout, according to Variety.

Toys ‘R’ Us is cooking up a similar scheme to tap into the used game sector as well, a move that can’t help GameStop any.

Check out Amazon’s trade-in service here.