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Gamestop to carry tablets in stores for first time

People play video games inside a GameStop retail store in New York
People play video games inside a GameStop retail store in New York

NEW YORK (Reuters) - The largest U.S. video game retailer GameStop Corp will sell Android tablets this holiday for the first time in a bid to grab a slice of the growing market of people who play games on the go.

A company spokeswoman told Reuters on Monday that the company is still figuring out which Android tablets it will carry holiday season.

"We are evaluating which tablets to carry in stores this holiday and the chosen tablets will be capable of delivering a great gaming experience using the latest chip technology," said GameStop spokeswoman Wendy Dominguez.

Dominguez added the tablets "will come preloaded with exclusive content."

The company is also looking at creating a controller to accompany the tablets, GameStop said.

The tablets will be in stores this holiday. This is separate from GameStop's announcement on Monday that it would carry used Apple devices including iPads and iPods. Consumers will also be able to trade in their old Apple devices for cash.

GameStop declined to comment on sales expectations for the Android devices.

Sterne Agee analyst Arvind Bhatia said he was cautiously optimistic about the news and said it will likely not generate much revenue for the company initially since the margins on the tablets will not be very high, he said.

"The impact on GameStop's bottom line will be small since this is an unproven market for them," he said.

GameStop shares closed 0.4 percent higher on Monday at $23.22.

(Reporting by Liana B. Baker, editing by Bernard Orr)

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