Video Games

Video games may spell ‘opportunity’ for C-store operators
Can convenience-store operators profit by selling video games?
7-Eleven Inc. evidently has decided it can be done. The convenience store company has struck a deal with Game Trading Technologies, Inc. (GTT) to offer used, refurbished games as “Great Games Below $20” in more than 3,000 stores, which represents half of the U.S. stores operated and franchised by 7-Eleven.
"What this means to consumers is that they will have many convenient locations, most open 24/7, to buy value-priced video games," said Todd Hays, president and CEO of Game Trading Technologies, Inc., Hunt Valley, Maryland. Hays said his hope is that the offering will be expanded to most 7-Eleven stores in the U.S. by September. Details of the partnership were provided in a press release issued April 19 by GTT.
Market data show that “physical format” games are the most popular with consumers. For example, according to The NPD Group, a market research firm, 90 percent of all paid console video game acquisitions in the third quarter of 2009 were in the physical format. Further, 79 percent of games acquired for all other platforms (including portable, PC/MAC, mobile and smartphones) during that quarter were in the physical format, NPD said. Physical format acquisitions include new and used game sales, physical add-ons (including song packs) as well as rentals.
That said, an NPD researcher noted potential for change in the market."While physical retail product remains the driving force behind industry sales, the role of digital distribution in the games ecosystem continues to climb," said Anita Frazier, industry analyst with The NPD Group. "Publishers and retailers must keep an eye on the current state of the marketplace and must map ahead for future strategies."
In the 7-Eleven venture, each participating store is to receive a corrugated display with a mixture of games representing various platforms and price points, all at $19.99 or below. GTT is to provide regular replenishment to ensure that stores remain well-stocked with a broad selection of games at value prices.
GTT was founded in 2003. The company said it has built a proprietary game-trading database designed to update values on more than 10,000 video games and consoles on a daily basis according to market conditions.
Michael Jester, 7-Eleven category manager for gaming and electronics, said, “We partnered with GTT because of their experience and expertise as a third-party provider of video games and the terrific selection they'll offer to our customers. More than 60 percent of U.S. households now have at least one video game console, and consumers are searching for convenient ways to stretch their entertainment dollar in this challenging economy.”