While GameStop, Amazon, and smaller independent stores are duking it out for your game trade-ins, we reported Monday on a kiosk spotted at a Walmart location that automated the act of trading in games. The gamer who tried to use the kiosk had quite the unhappy experience, and the gaming blogs ran with the story that Walmart may be getting into the used game business. We caught up with the company behind the kiosk, e-Play, to get all the questions answered.

The first clarification: Walmart is only providing the floor space for the pilot program; the retail giant isn't getting into buying or selling games directly. "Walmart is providing vestibule space to e-Play at 77 of its Northeast region stores. Some stores have Video Game Buy Back only kiosks and some kiosks are full-functioning, but e-Play manages all aspects of kiosk operations for both types," Alan Rudy, the CEO of e-Play, told Ars. "While we have over 200 other retail locations, this is currently a pilot program with Walmart, but we are optimistic of its success and future expansion."

The system also offers a good amount of security. You scan the game's barcode, and the machine tells you its trade-in value. If you decide to sell the game, you have to put the disc into the hardware directly. "Once a disc is inserted into the kiosk, the disc is spun up, identified and evaluated for damage," Rudy explained. "The kiosk is also able to tell if the disc is burned, is a CD or is an old AOL advertising disc and would reject it. If the disc is unidentifiable or does not match what the user stated, there will be a screen that advises the user that the disc did not match and the disc will be returned.

"If a disc is too badly damaged, we will withhold credit and contact the customer to inform him/her. In most cases, even heavily scratched discs can be recovered with our refurbishing process at our distribution center. The discs are inserted into the kiosk, and the empty jewel cases are inserted into the trade bin beside the kiosk."

The machine then asks for your credit card and driver's license for record-keeping, and the trade-in is credited to your card in a day or two. That's right, you get what amounts to cash, although the possibility of retailer gift cards will also be explored.

These kiosks won't just give you credit for games, you'll also be able to purchase or rent games. One of the advantages of the kiosk system that Rudy points is the lessening of shrink: there is no product directly on the floor for customers to steal, and no employee needs to be trained to operate the machine.

How is e-Play hoping to combat Amazon? "The e-Play trade method does not involve printing shipping labels or waiting on snail mail to deliver your games or to return your Amazon gift card," Rudy said. "Soon, e-Play will also post their buy-back pricing online so customers can preview this information before going to a kiosk." Rudy won't review the "proprietary algorithm" the company uses to determine trade-in value, but by placing the values online and allowing customers to scan the games and see the value before making the decision, they are offering one more data point showing how much used games are worth on the open market. Also, unlike GameStop, the value does not decrease if you decide you want cash instead of store credit for your games.

So what happened with the gamer in the original report? Rudy tells us that if a retailer like GameStop puts their own bar codes on the game cases, the machine won't recognize them. By sliding the sleeve up or down you're able to reveal the original barcode, allowing the machine to recognize the game. Right now PS2, PS3, Xbox, Xbox 360, and Wii games are accepted for trade.

It seems like a viable business strategy... as long as the price offered for used games is fair. You don't have to mail anything, you don't have to accept a lower amount if you don't want store credit, and if the machines are conveniently located, selling your games could be done as you go about your normal shopping. You can see if there is a kiosk close to you by checking out the company's website. Rudy promises the kiosks have been tested, and there will be a new screen explaining the issues with third-party barcodes to avoid more confusion.

The battle for your used games continues.