Best Buy (BBY) is going after video game retailer GameStop (GME) close to home. The electronics giant will start testing new used video game kiosks this week in Dallas and Austin — not far from GameStop’s Texas headquarters.
The kiosks eat your used video game, scan it for functionality, and spit out a Best Buy gift card. You can use it for anything in the store — a new game, a console, a washer-dryer, whatever. Some stores will sell used games, and some kiosks will rent games and movies.
If Best Buy’s trial is a hit, and it rolls out kiosks across the country, that could be bad news for GameStop. The company has said that 70% to 80% of its trade credits go right back into new games. And obviously Best Buy has plenty of new games that people can buy.