The internets is abuzz with the March fifth news that Amazon has become a competitor to Gamestop in the used games business with Amazon Video Games Trade-In beta. This is obviously terrible news for Gamestop, which has enjoyed healthy market shares of the industry since the seventh-generation really took off, which has involved them enjoying high stock prices, which fell 13 percent after the announcement from Amazon, though the big drop in the Gamestop market cap seems to be after the March fourth Toys "R" Us announcement that select stores would be accepting used games in their stores.
See the chart here.
This is just one more piece of the puzzle of the downfall of Gamestop. It is coming, slowly but surely. What they need to do is start investing in broadband distribution. The music and movie industries tried to fight the internet and failed miserably. The same situation is coming in the videogame industry (actually, it's already here), and if Gamestop doesn't adapt, it can kiss its good fortune goodbye altogether.
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