Walmart's move to cut prices on the Wii and two dozen of the year's top releases was enough to dent GameStop's stock early Wednesday, dropping it nearly 9 percent - the biggest plunge of any stock in the S&P 500.
GameStop was trading for $21.73 around 1 p.m. U.S. Eastern time, $2.11 off its opening price of $23.84 and a decline of 8.8 percent. It had hit as low as $21.36 earlier in the day.
Bloomberg News reported that an analyst advised clients that GameStop, whose stores have been located in close proximity to Walmart to capitalize on the retail giant's foot traffic, may have to drop its prices to remain competitive. Walmart's price cuts affect 25 games, including Left 4 Dead 2, and Uncharted 2, and take as much as 20 percent off their MSRP through Dec. 24. Walmart is also offering a $50 gift card with the purchase of a Wii.
GameStop Falls Most in S&P 500 After Walmart Cuts Game Prices [Bloomberg]