The competition for used video games is heating up as the world's largest retailer enters the arena starting next week.
Wal-Mart said Tuesday it would allow consumers to come into its stores, at 3,100 locations, and trade-in used video games for an eGift card for use on any item sold in Wal-Mart and Sam's Club stores and online.
Later this year, Wal-Mart will resell the pre-owned games in-store and online, after the games have been refurbished by CE Exchange. Wal-Mart currently works with CE Exchange on its smartphone and tablet trade-in programs.
Word of the new program sparked a selloff of GameStop shares, which tumbled 4 percent, as investors worried about the impact on the video game retailer.
GameStop is largest retailer of new and used video games, with two-thirds of its product offering used games. Pre-owned games are significant margin boosters for the gaming retailer, accounting for about half of its gross profit.