GameStop's $20 Video Game Gamble

Why you're likely to see more value-priced games in retail locations across the country.

Demitrios Kalogeropoulos
Demitrios Kalogeropoulos
Apr 11, 2014 at 6:00PM
Consumer Goods

Gamers are used to shelling out $60 for most new video games. That's one of the reasons that there's such a vibrant market for pre-owned games. But there's actually a large and growing number of titles that retail for $20 or less -- and GameStop (NYSE:GME) sees a big opportunity for its business in selling those products.

In the video below, Fool contributor Demitrios Kalogeropoulos discusses the retailer's new push into the value-priced gaming category. He notes that GameStop has stayed out of the business until now in order to protect its massive profit margins on selling pre-owned titles. But the move could pay off despite the profit pinch that GameStop risks here, in the form of higher revenue and greater customer traffic.