Amazon said it is to start offering vouchers in return for secondhand games, a ploy Gamestop slapped last night as unworkable.
UBS analyst Ben Schachter concurred, saying the market was overreacting.
“Online game sales currently comprise less than 2% of GME’s total business (via the gamestop.com website) and we estimate well-less than 10% of industry game sales,” he wrote in a research note reported by Variety.
“We believe the ‘instant gratification’ of the trade-in process at physical stores remains a key advantage for GME, and we note that GME once offered online/mail-in trade-ins but stopped after issues w/product quality/shipping expenses. The bottom line is that [Amazon] is a formidable competitor, but we don’t see any meaningful near-term risk, and online used just isn’t a particularly big market.”
Plenty more through the links.