OAKBROOK TERRACE, IL--(Marketwire - 04/28/11) - Redbox, America's movie rental destination, today announced it will offer video game rentals at more than 21,000 redbox locations nationwide beginning June 17, 2011. Top video games will join new release movies for only $2 a day complementing $1 DVD and $1.50 Blu-ray™ daily rental prices. The announcement follows a test of video game rentals in select U.S. markets that began in August 2009.
"Redbox will increase consumers' access to video game rentals by leveraging our incredible technology and business model to keep rental prices low for consumers," said Mitch Lowe, president, redbox. "With more than 21,000 redbox locations slated to feature video game rentals alongside movies this June, redbox will be the one-stop shop for entertainment."
Redbox, a Coinstar, Inc. brand, has tested video game rentals alongside movies at 5,000 redbox locations. "Redbox has rented more than one million video games in less than two years at these locations, underscoring the popularity of video game play in America," added Lowe.
My reason for arguing about damaged games. The younger gamers do not take care of those discs when storing them or placing them in the units.
At least Gamestop will guarantee a used game sale. If it is damaged in any way, you get money back or apply to a new game.
There are games in the Redbox kiosk that sell at GME used for $13 from looking at just a few titles on their website.
That's less than 7 days rental plus whatever residual value when you trade it back. And that's before power up rewards bonuses. And you can keep it for as long as you want.
Their selection is terrible. Most of the games are for kids under the age of 12.
"Mom, I'd like a $2 a day video game I have to return back to the kiosk before I end up paying more than a used copy i don't have to return at Gamestop!"
GME average used game price $16. So, you'd have to be 8 days late on an overnight rental. Doesn't seem like a big deal?
Coinstar will find that video games will come back damaged in many instances due to younger players not handling the disc appropriately. How would you feel about renting a disc that fails to play correctly when you just about reach a certain level in the game due to a nice scratch. The video games are much more expensive than DVD movies. I think this will be a little more difficult to offer as a rental.
On other hand, if a player likes the levels of play, he may keep it a few extra days, and what happens when the player has had it a week playing. $14 spent, but no game to play after that. It may lead to sales at Gamestop for a popular game.
Just an opinion.
Maybe they could sell their previously rented video games as used games to Gamestop. Unless they have a rent to own option, I don't see how this would adversely affect Gamestop's business model.
It seems that rental will impact the whole market in that you can try it before you buy it. This would reduce the number of buyer remorse incidents which would then flow through to trade in volumes and so on.
IMO more renting means less buying.
However, I do think the most affected will be BBY, which has a more expensive rental model.
Although, why go out of your way to a GME to buy a used game for $20 when you can rent it for the weekend for $6? I think it will have a very small impact to GME, and so to dismiss it entirely seems rather optimistic.
hey mom, can you get me a video game when you are at the grocery store, or when you go by walmart, or many other places
hey mom, can you give me a ride to gamestop and sit in the car and wait while I spend $50?
Looking at their site, they currently have a whopping 30 or so titles for rental. Hardly a compelling selection. There has certainly been a lot of resistance from movie studios to Redbox's business model. My guess is there are probably major game publishers also who aren't too keen for them to be selling games at $2 a day in their kiosks.
REDBOX is NOT giving video games to people for FREE of charge.
It sounds like you have to pay $2.00 per day of rental per 1 video game.
So Spawn Labs could do the same.
And if the choice is
Run the risk SPAWN LABS disrupts your other business...
Do nothing while REDBOX disrupts your business...
I'd go with letting Spawn Labs do some disrupting.
Look.. I've rented video games all the time and still was a heavy...heavy...buyer of video games.
Renting games can cause you to BUY the video game you rented.
Other than suffering $2.00 a day fees.