GameStop Corp (NYSE:GME), the U.S. video game retail chain, is expanding its market reach by venturing into the lucrative collectibles domain.
According to IGN, select GameStop stores will begin buying and selling single Pokémon and other trading cards starting this week.
The Grapevine, Texas-based company aims to capitalize on the collectibles market, leveraging its existing trade-in system for video games to facilitate transactions for graded trading cards.
The emphasis is on "graded" cards, authenticated and appraised for their condition and authenticity by the Professional Sports Authenticator (PSA). This ensures that only genuine and valuable cards are accepted.
Initially, GameStop will limit its acceptance to cards graded by PSA and those valued at $500 or less. However, plans are underway to expand this service to all GameStop locations.
GameStop views this move as a natural evolution given the declining significance of physical media in the gaming industry. The company aims to diversify its offerings and tap into the growing popularity of trading card games. Pokémon cards will be a primary focus, with holographic and reverse holographic cards priced at $1 each.
The decision to enter the trading card market comes amidst a surge in interest, fueled by high-profile sales of rare cards fetching millions of dollars. Notably, a Pokémon card holds the record for the most expensive trading card sold at $5.275 million.
Other instances, such as rapper Post Malone purchasing a Lord of the Rings Magic: The Gathering card for $2 million, underscore the market's allure.
Price Action: GameStop's stock spiked by more than 100% at one point Monday, adding billions of dollars in valuation to the video game company.
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The stock is currently trading at $31.22 a share and is up 78.5% at last check on Monday.
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