Gamestop Stock Prices Fall Sharply

Gamestop Shares Fall 8.3 Percent on News That Wal Mart is Cutting Into Market Share

Gamestop, the nation’s largest video gaming store, saw it’s price on the S&P 500 fall 8.3 percent on Wednesday in response to news that Wal Mart is cutting into Gamestop’s control over the video game market.

Wal Mart has been offering incredible deals, including a $50 gift certificate with the purchase of a $199 Nintendo Wii system, essentially providing a free game or another gift for someone else in the family when purchasing a Wii. In addition, Wal Mart has been cutting prices on their top 25 video games by as much as 20 percent through December 24.

Gamestop hasn’t been offering the same type of deals and may have to cut prices to match Wal Mart in an effort to stay atop the video game supply chain. Gamestop’s stock price fell to $21.87, which is its lowest price since July 30. This comes on the heel of news released last month that Gamestop’s 3rd Quarter profits rose, posting a profit of $52.2 million.

Chris Olivera, a spokesman for GameStop, said, “We believe consumers will always rely on GameStop for the best values, the broadest selection, unparalleled product availability and knowledgeable game advisors they can count on.” The next month will be a crucial measuring stick for GameStop as the holiday season heats up from now until Christmas Eve.

Source: Bloomberg News