"We expect GameStop may have lost intended foot traffic this holiday to big-box retailers offering highly promotional pricing on numerous consumer products," he stated. "We think low price retailers like Wal-Mart, arguably the largest domestic videogame retailer, likely took market share this holiday."
What places like Wal-Mart do not offer, however, are used games, a business that makes up around half of GameStop's total gross profits. That could be GameStop's savior when the company reports its holiday period sales on Thursday.
"...We expect GameStop’s reported holiday sales performance will benefit from strength in their trade-in business, the relative strength of videogame products and recently reduced guidance from management," Hickey added.