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GameStop Stock Plunge Blamed on Walmart Price Slash

Illustration for article titled GameStop Stock Plunge Blamed on Walmart Price Slash

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.

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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.

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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]

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DISCUSSION

Cue the onslaught of GameStop hate!Glad to know that so many people posting here would love to see their fellow gamers out of a job, simply because once upon a time, someone at GS pissed them off. Or didn't know about one specific title. Or wouldn't take in Madden NFL 2004 because it had your damn initials carved into the disk. Everyone here complains about GS giving out only a fraction of the cost of a game for trade-ins, yet convenient ignore how bad it is when it comes to books. NEW books are bought by Barns and Noble for a couple bucks and sold for $40 or more. GS employees get a discount off games, yes, but that discount is tripled at Barns and Noble, simply because of how much dough they are raking off books. But GS is the evil corporation, of course. How dare they offer bonus deals to preorders! Nevermind the shit is completely free, and only an imbecile would complain about free bonus material. I don't see Walmart standing behind their products the same way GS does. We can't fix your broken Wii or 360 either, but I wouldn't advise calling some random Walmart employee when it comes to troubleshooting what's wrong. Naturally, Nintendo or Microsoft would be better able to help, but any GS employee would do his/her best. Though it doesn't help we have people on the other line shrieking obscenities about how their NEW system (therefore completely devoid of any problems on GS's end) crashed or doesn't start.Obviously not all GS employees are perfect, and I'm not saying we are. There are crappy employees and there are crappy managers. Just like Walmart, just like BestBuy, just like Target, Sears, FYE, Hy-Vee, you name it. But it's because I am a gamer that I visit this site every day (2 hrs?) that I see so much unfair hate unloaded on a company that also offers so much, that it really rubs me the wrong way (I'm trying to put this as politely as I can).

EDIT: After reading the Kotaku summary again, and also the original article, I fail to see exactly where GS places the blame on anybody. So suddenly some analyst makes a connection between sales, and that translates into OMG GAMESTOP IS PLAYING THE BLAME GAME!!!1

If I missed where GS's response was to this analysis, do point that out. I just didn't see where it was made apparent.