Investors in GameStop may have panicked earlier this month at the news that Amazon.com was entering into the used video game arena, but a new study suggests that the slumping economy might help make room for plenty of competitors in the market.

On March 5, Amazon announced a new service through which customers could trade in used video games through its site, in exchange for store credit. This news immediately caused a sharp sell-off of GameStop shares. GameStop saw its stock drop more than 20 percent in the two days following the announcement.

However, according to a report Tuesday from Electronic Entertainment Design and Research, a market research firm that focuses on the video game market, GameStop is unlikely to see much of its core business threatened by the far larger online retail giant. According to the EEDAR report, GameStop is likely to retain its advantage in the used market with core gamers, who often use the company’s stores to trade in older titles for credit on new releases when they come out. As Amazon will be unable to match that sort of “instant gratification,” its own service is more likely to appeal to people seeking credit for other types of merchandise. Source: CNN