If you look at the pre-tax cost of the separate components of this bundel, and then assume the kiddie kinect games are going to retail for $40 instead of $60 (as suggested in other comments above) the actual value of the items in the bundle total to a meer 149 + 40 + 30 = 219. The $20 difference between the $199 "bundle" cost and the "actual value" is less than the value of the walmart gift card, so essentially they are spotting you 20 bucks to walk into there store and start shopping. Perhaps this gift card is not "all inclusive" but has enough restrictions on it, to where Walmart is betting a lot of them go unused. For every card that goes unused, they are ahead $10. Even if they are used, Walmart is not out $20, but instead is out only the amount of money it cost them, since they didn't pay $20 retail to stock the merchandise. Also, the gift card gets you in their store so they can potentially sell more stuff beyond the $20.