Toys R Us going into used-game market?

March 2, 4:39 PMSF Video Game ExaminerEdie Sellers

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When it comes to selling used video games, GameStop is king. But there may be a new contender for this very lucrative market: Toys R Us.

Cheap Ass Gamer reported today that one of its East Coast users found an advertisement at his local Toys R Us announcing it will buy used games for in-store credit.

The store, Toys R Us number 6325 in the Natuet, N.Y., is reportedly one of several locations testing out the buy-back program.

According to the report, four weeks ago selected stores began accepting games in good condition in their original cases with original artwork and player's manuals. They will not accept games with an adult-only rating from the ESRB.

The pilot program will reportedly continue for another eight weeks.

It comes as little surprise that any retail store would vie for a share of GameStop's action. Since it began accepting used games for trade beginning in 2000, GameStop's 6,100 stores in the US and 17 other countries have become the go-to name for buying and reselling used video games.

Earlier this year, GameStop posted $2 million in corporate revenue for 2008 (up $400 million from the year prior), with nearly half coming from reselling used games.

Joseph Feldman of Telsey Advisory Group told the Wall Street Journal in January, "Once you have played a game awhile and it loses its value, GameStop is pretty much the only place where you can get something for it, and that's a big deal in this economy."

But that could change if  Toys R Us entered the market. The perennial leader of toy retailers has 1,500 locations of strength behind it. Last month it acquired online toy store EToys.com to join its established online presence with Toysrus.com, Babiesrus.com and Babyuniverse.com, and Epregnancy.com.

Toys R Us did not immediately return calls for more information, but its senior public-relations manager told Kotaku today that the program is only a test and would not say whether it would be extended to other stores nationwide.