Blockbuster announced a bold expansion of its video game business by significantly increasing the number of games and gaming hardware available at its U.S. corporate-owned stores. However, no PC games will be part of the push, Gamespot reports.

"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, Blockbuster’s vice president of games merchandising, in a statement.

All popular consoles and their most popular accessories will be made available. This includes the PlayStation 3, Xbox 360, Wii and Nintendo DS. In addition, special bundles will be offered such as an exclusive $499.99 PlayStation 3 movie and game bundle featuring a 40GB console, Blu-Ray movies Spider-Man 3 and Transformers and a Blockbuster rental card for PlayStation 3 games and Blu-ray movies.

Gamespot also reports that the company's new push into gaming does not include Sony's handheld gaming console. This means that Playstation Portable games will be available for rent only at Blockbuster locations, and only existing Game Rush locations will sell new retail PSP games.

Blockbuster Inc. made earlier this month an unsolicited proposal to acquire Circuit City Stores Inc, the second largest U.S. electronic retailer, in a bid said to worth around $1 billion. Blockbuster is prepared to offer at least $6 a share, subject to due diligence, and decided to make the bid public "because it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company," Blockbuster said in a statement.

The financial forecast from Blockbuster shows a $30 million net income in the first quarter, compared to a net loss of $49 million last year. Blockbuster, whose stock has fallen nearly 60 percent in the last year, has seen its shares drop another 17 percent, to $2.60 a share, after the proposed bid was announced.