Dallas - Video rental giant Blockbuster (NYSE: BBI) announced on Monday that it has begun selling video games, game consoles and accessories at all of its U.S. corporate-owned stores, as part of the company's broader plan to significantly expand its game business.

In addition to adding hardware such as the PlayStation 3, Xbox 360, Nintendo Wii and DS, Blockbuster will also add more game titles for rental and more copies of rental titles across all platforms.

A $499 launch promotion will offer customers a 40GB PlayStation 3, "Transformers" game, "Spider-Man 3" on Blu-ray and a 12-week rental card good for one free PlayStation 3 or Blu-ray rental per week.

"We're committed to offering a full assortment of everything gamers want in our stores -- hardware, accessories and retail and rental games across all platforms -- including Nintendo Wii, Sony PS3, Microsoft Xbox 360 and Nintendo DS," said Rod Murray, VP of games merchandising at Blockbuster.

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