GameStop (GME) shares are getting clobbered today on news that Amazon.com (AMZN) is getting into the business of buying and selling used video games–and so is Toys ’R Us.

Credit Suisse analyst Gary Balter explained in a research note today that one reason he has maintained an Outperform rating on GME shares is that the company has dominated the used videogame business; he notes that used games generate 44 percent of the retailer’s gross profits, nearly twice the segment’s sales contribution to the company. Over the last several days, he reports, there have been two attacks on the company’s near monopoly in used games.

On Tuesday, Forbes reported that Toys ’R Us has a pilot program to test the sale of used games in some of its U.S. stores; Forbes noted that the program was first reported in the user forums of a Web site called cheapassgamer.com. Other retailers, including Best Buy (BBY) and Blockbuster (BBI), have previously experimented in the segment, but haven’t made much of a dent.

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It has become popular to say that the gaming industry has become recession-proof, simply because the overall sales for 2008 are up year over year…but those numbers only tell part of the story. Other sources are starting to report some troubling trends in gaming sales, not the least of which is the plummeting price of used games. These trends could lead to some troubling times for gaming in 2009.

Video Game Price Charts tracks the value of used games over a variety of sites such as Amazon.com (AMZN) and eBay (EBAY), the so-called “gray market” for games. These are people selling games directly to other people, which means no one is setting an artificial price such as used-game stores like GameStop. The data isn’t pretty: Prices of used games took a beating in the end of the year, as the chart below illustrates.

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