UPDATE:Best Buy:Used Video Games Strategically 'Interesting'

Best Buy Co. (BBY) considers the used-gaming software industry "strategically very interesting," the company's U.S. chief financial officer said Thursday.

But officials speaking at an RBC Capital investor conference would not comment on speculation the consumer electronics retailer could take a look at acquiring industry leader GameStop Corp (GME).

Ryan Robinson, who is senior vice president and the chief financial officer for Best Buy's U.S. unit, said video gaming is "a strategically important part of our business," and acknowledged room for improvement in the retailer's operations.

"What I think is something that we've missed in the industry and is something other participants have been doing is the proportion of business that is used," he said. "We've not developed the capability to the extent that other participants have. It's a very margin-rich portion, so I think there's opportunity in that business."

Robinson noted Best Buy is testing in some stores automated kiosks that purchase used games.

Another Best Buy official said the retailer doesn't comment on deal speculation. Bloggingstocks.com on Tuesday suggested GameStop would make sense as a takeover target if Best Buy wanted to make video games the centerpiece of its product offerings.

A representative for GameStop also declined to comment.

Robinson noted that Best Buy's acquisition strategy has historically focused on buying young companies with strong managements offering skills or businesses that complement Best Buy's own and that can be leveraged in its stores. That remains the company's "strong preference," he said.

"Rather than a big-bang type of acquisition, our preference has been identifying management teams that have additive capabilities and think about how they're extendable into the Best Buy business," he said.

Issues surrounding digital rights management could cloud the long-term prospects of the profit model for used video games, he said. Like the music business, gaming is also affected by a shift to online content.

"But it's a strategically very interesting business for us," he said.

Shares of Best Buy ended the regular trading session down 2.5% at $37.59. Shares of GameStop fell 0.1% to $25.80.

-By Mary Ellen Lloyd, Dow Jones Newswires, 704-948-9145; [e-mail]