Shockingly, GameStop’s Graded Card Program Will Buy PSA Cards for Their Market Value! All The Details!

We’ve now learned full details for GameStop’s graded cards program!

GameStop plans to launch the program at all locations in June. Today it soft-launched at 200 stores in Texas, Connecticut, Kentucky, Georgia, Mississippi, Tennessee, and New York.

It appears GameStop will offer fair market prices for PSA cards. When we first revealed this program last week, the most common critique was that GameStop would only buy cards for a portion of their value. However, that’s not the case (at least not currently).

For example, when visiting a store earlier today, GameStop’s offer for a PSA 10 Jolteon VMAX was $158 cash or $176 store credit. A PSA 10 Noivern V was $121.50 cash or $135 store credit.

These prices are similar to what the cards are worth if you try to buy them online right now.

GameStop’s buying prices are similar to the price guide on PSAcard.com. PSA’s price guide scrapes auction websites to determine the average market value of a card. GameStop appears be using that database for their price, at least in part. For example, the Jolteon VMAX was offered for $176 store credit and recently sold for $177.50 at auction.

When a customer brings cards in, they will be valued in real-time by entering their PSA number into GameStop’s systems. Because the prices can fluctuate often, GameStop’s offers will only be valid during that transaction. The customer may then accept or reject the offer. They can be paid in cash or store credit, but cash will offer 10% less.

GameStop is currently training its employees to evaluate the authenticity of PSA cards submitted by customers. As mentioned last week, cards valued above $500 will not be accepted. Signed cards also won’t be accepted at this time.

Here is an internal checklist employees will use to verify a card slab’s authenticity. Employees will even use a blacklight. If a slab fails any one of these checks, the employee must reject it.

GameStop is currently sourcing fixtures to eventually display and sell the graded cards in stores (though it’s unclear if they will offer a fair market price when selling them). As we reported last week, the cards they buy from customers won’t initially be sold in stores. They will be shipped to GameStop’s headquarters and sold on GameStop.com.

Eventually GameStop plans to expand this program to all types of collectibles, like statues and Funko Pop. Some of their internal documentation indicates the program may expand to other grading companies as well.

You can watch our last podcast episode talking about this program here:

How would the GameStop executives stop an employee from skipping over/faking the card legitimacy?
have you ever worked a retail job? lmao. the executives have nothing to do with what goes on in the stores. they’re very out of touch. they don’t do anything. it’s the people lower than them that push the virtual trainings and tell the store managers what to tell the actual retail employees what to do. the store takes a loss and the employee is either reprimanded, or, depending on how many times they’ve been in trouble, fired.
 
I wonder how this will affect GameStop's stock price. As an investor I am curious.
 
Paying you $20 less is still $20 profit for the store. The "store credit" is obviously a sham, since now they're making money on their product's margin. This isn't any different than taking your cards to a Local Game's Store, you're also going to get a haircut.
The bigger issue I see is that prices of graded items aren't always consistent. The supply is much lower and people can set them to whatever they want. I assume GameStop will just pick the lowest they can find and cut their 15% off the top.
 
Also, remember, it costs money and takes time to grade. Where as you could sell raws very quickly for almost as much money.
 
have you ever worked a retail job? lmao. the executives have nothing to do with what goes on in the stores. they’re very out of touch. they don’t do anything. it’s the people lower than them that push the virtual trainings and tell the store managers what to tell the actual retail employees what to do. the store takes a loss and the employee is either reprimanded, or, depending on how many times they’ve been in trouble, fired.
Good point lol. It was just on my mind
 
😱 Whoa that’s AWESOME! 🤩
It really isn't.

Pokemon cards make up such a large portion of our Local Game Stores' business where I live, especially graded cards and the collector market. This is horrible news for them--if GameStop can manage to somehow kill the local game stores, where will people play in leagues?

Of course GameStop could just replace the Local Game Stores, but you will never be able to replace the atmosphere and care of the people who run those Local Game Stores.
 
I wonder how this will affect GameStop's stock price. As an investor I am curious.
Depends on how often the LCSs were used for laundering.

But seriously, it is quite an idea. Take in all the good cards, horde them until no one can get their hands on them to up the price, then use the lack of supply to shell out the pack for it at a premium, only selling the best cards out of the set when the value is high enough. Gamestop's gonna go way up over time.
 
to everyone saying this will hurt LCSs, please keep in mind that not everyone has a LCS relatively close by. the closest one to me is almost 2 hours whereas the closest gamestop is 10 minutes. sometimes it's just not feasible to go to a LCS when it's that far. for me, this is good news. lastly, don't forget that store credit can be used online for purchases, too.
 
It really isn't.

Pokemon cards make up such a large portion of our Local Game Stores' business where I live, especially graded cards and the collector market. This is horrible news for them--if GameStop can manage to somehow kill the local game stores, where will people play in leagues?
At GameStop
Of course GameStop could just replace the Local Game Stores, but you will never be able to replace the atmosphere and care of the people who run those Local Game Stores.
Theoretically you could, at GameStop.
 
Paying you $20 less is still $20 profit for the store. The "store credit" is obviously a sham, since now they're making money on their product's margin. This isn't any different than taking your cards to a Local Game's Store, you're also going to get a haircut.
The bigger issue I see is that prices of graded items aren't always consistent. The supply is much lower and people can set them to whatever they want. I assume GameStop will just pick the lowest they can find and cut their 15% off the top.
Gamestop isn't doing this to build a collection. They're doing this to make profit. Obviously they will incorporate normal capitalization tactics when building their inventory.

Sure gamestop might be shaving 15% off the market price when buying, but that's sadly a price you have to pay to have a consistent place to sell your collection. Can you make more money selling to someone else? Sure you can but that will then require you to spend more effort to find that buyer.
 
You can actually look at this quite logically.

Locally here, you have Pharmacies and The Chemist Warehouse. Pharmacies charge $5 per script item, The Chemist Warehouse charges nothing. The idea is to kill the competition at loss so that when it's all gone, you have the market and can charge what you want.

That's what GameStop is attempting to do. No local will offer more than say... 60% market value when buying cards. By offering more at GameStop, they hope to take that market and eventually try to have a hold over it.

Unlike locals, your average GameStop employee won't care enough at minimum wage to do more than the bare minimum required to verify a card, so make it so that only self opened stock is sold in bulk, and, that any bought cards are PSA. PSA being the oldest and "most reliable" method of dummy proofing their new system.

I still think this won't work, but again, it's definitely a trend.