Last year, both Wal-Mart and Best Buy decided to jump into the glamorous world of used games to try and take a piece of the market share. Said market is mostly dominated by places like GameStop, which generates almost half of its profits from the exchange and sale of used games.
The E-Play manufactured used-game kiosks at both Wal-Mart and Best Buy failed to make a significant impact – or any impact at all, really – and tanked completely. Analysts had predicted placing such a type of kiosk would have little to no impact on the market, and it seems they were accurate: Today, E-Play suspended its operations and neither Wal-Mart nor Best Buy have indicated a desire to continue exploring the market.
Sterne Agee analyst Arvind Bhatia said that the kiosks performances were “underwhelming” and that the kiosks at Wal-mart and Best Buy locations have been disconnected and will be “removed from the locations over the next few weeks.”
GameStop can now breathe a sigh of relief knowing their share of business is safe for another day. If the kiosk had been successful, we all know how much of a drain both Wal-Mart and Best Buy could have been for one of the world’s greatest game-havens. But as Bhatia stated, “it is clear the used games business is not an easy one to execute.”
What did you think of the used kiosks at the big box retailers? Did you notice their existence? If so, did you you realize that makes the kiosks more successful than the N-Gage?