Gamestop Stock Drops 13% Following Amazon Trade-In Announcement..

[sega4life]

13% damn....

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GameStop stock drops 13% following Amazon trade-in program announcement

by Dustin Burg { 1 minute ago }

Even though GameStop's CEO is confident that Amazon.com's plan to enter the used video game market won't be successful, it appears GameStop investors aren't as optimistic. Shares of the company dove 13% on Thursday, ending the trading day $3.54 lower.

Variety reports that Amazon.com's used game ambitions (and to a much lesser extent, Toys 'R' Us' plans) worried investors today, causing a huge GameStop stock sell-off. Used game sales account for 44% of GameStop's gross profit and having Amazon as a competitor in one of its most lucrative operations just doesn't bode well for its stock price. As far as we're concerned, competition among businesses is always good.

Shares of Amazon stock seem to be unaffected by today's news.

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Heres what Gamestop had to say earlier....

GameStop: Amazon trade-in program has zero percent chance of working

by Griffin McElroy 

Thanks to advances in internet technology, inflammatory retorts between industry figures can now be developed and distributed at the speed of light. For instance, when Amazon announced today that it'd begun experimenting with a trade-in program for video games, GameStop CEO Dan DeMatteo formulated his response and fired it off to Edge Magazine in the blink of an eye: "I give the probability of this working at zero," he promptly declared.

DeMatteo explained that Electronics Boutique attempted to apply the same mail-in trade offer that Amazon is working with several years ago, reaping unfavorable results. "With consumers, there is an immediacy for currency when they want to buy a new game," he explained. He also stated that -- okay, listen, we'd love to finish this post, but we've got this copy of Ty the Tazmanian Tiger 2: Bush Rescue sitting on our bookshelf, and if we don't trade it in within the next few minutes, we are going to totally freak out.