Redbox Dabbles in Game Rentals

June 30, 2010 -

Video rental company Redbox is testing videogame rentals in three test cities. The company, which makes use of video rental kiosks around the country, began testing videogame rentals last week in Austin, Texas, Reno, Nevada and Wilmington, North Carolina. The rentals cost $2 a day per titles. The initiative has been rolled out to 150 kiosks units in those regions, according to analysts familiar with the company.

Eric Wold, analyst with Merriman Curhan Ford in New York conducted a survey of kiosk in the target region; he said that the data showed an average of 2.8 video game titles and 3 video game SKUs (platforms) per kiosk.

In a survey of kiosks in Austin, Eric Wold, analyst with Merriman Curhan Ford in New York, found an average of 2.8 video game titles and 3 video game SKUs per kiosk — the latter representing the number of game platforms offered for a single title. Wold said he "was surprised" by the quantity and percentage of titles offered didn’t reflect market penetration of game consoles; only 28 percent of Redbox kiosks renting Wii games despite the fact that the Wii has has the highest U.S. penetration with 28.8 million units. He also found that 39 percent of kiosks held Sony PlayStation 3 titles while domestic market penetration for the PS3 console is 12.5 million units, according to Wold. Xbox 360 games represented 33 percent of the SKUs.

We had hoped to see a larger selection initially when consumers are likely to form initial impressions of the service and determine whether or not they will return at a later date," Wold wrote in a June 30 note.

He went on to say that these tests of videogame rentals has to at least keep up with or outpace video rentals. Some market research would show that videogame rentals tend to last multiple days.

Data about selection aside, this is a simple test to see if Redbox users are interested in having other kinds of entertainment available besides DVDs and Blu-Ray discs. No doubt the company will find that, given the right games, videogame rentals can be quite lucrative. Just ask GameFly.

Source: Home Media Magazine


Comments

Re: Redbox Dabbles in Game Rentals

Thank you for this article, it's really nice!

 

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Re: Redbox Dabbles in Game Rentals

$2/Day is quite pricey. For some games you are better off just buying them outright at those rates.

Re: Redbox Dabbles in Game Rentals

For a Wii game, you'll own it in 20-25 days.

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E. Zachary KnightWonder, I know you can revise content and resubmit it, but I can't findany information about a formal appeals process.05/28/2015 - 7:27pm
Wonderkarpever wonder if there's an appeals process for AO?05/28/2015 - 6:55pm
Matthew WilsonDanny and Andy play the first couple of levels of the upcoming Hatred http://www.gamespot.com/videos/hatred-gamespot-plays/2300-6425016/ imho it does not look like it should be AO.05/28/2015 - 5:57pm
Andrew EisenHey, remember Kung Fury? That short film that was funded via Kickstarter a few years ago? You can watch it now. I suggest you do. It's fun! https://www.youtube.com/watch?v=bS5P_LAqiVg05/28/2015 - 5:14pm
Goth_SkunkOriginally, yes. Some content was cut out in order to reduce its ratign from AO down to M, but PC users could work around that an unlock the full content by means of a patch. Which is what I did. :D05/28/2015 - 3:56pm
Andrew EisenKarp - Yes, for strong sexual content. Although the recent remaster contains all that content and was rated M.05/28/2015 - 3:54pm
Andrew EisenDepends on if you consider Hatred misrated. I haven't played the game or seen the ESRB's rating summary so I'm undecided.05/28/2015 - 3:53pm
WonderkarpDidnt Fahrenheit have an AO?05/28/2015 - 3:52pm
Matthew Wilson@AE that is why I said it seems more moral panic to me.05/28/2015 - 3:51pm
Andrew EisenMatthew - From what I've seen (just the trailers) the game is nowhere near as gory as many, many other games. But again, I'm guessing the AO rating comes from theme and tone rather than outright gore.05/28/2015 - 3:50pm
Andrew EisenKarp - It didn't show penetration or nudity.05/28/2015 - 3:50pm
WonderkarpI'd say Mortal Kombat X has more Gore and Violence than Hatred.05/28/2015 - 3:50pm
Matthew Wilsonwhat I mean by worse in this case its not more gory/violent than others.05/28/2015 - 3:48pm
WonderkarpI forget....did Hot Coffee actually show Penetration?05/28/2015 - 3:48pm
Andrew EisenKarp - The Skyrim mods are external mods. The Hot Coffee mod unlocked content on the disc. Big difference. Still, the content that was unlocked was still perfectly in line with an M rating in my opinion.05/28/2015 - 3:47pm
Andrew EisenThemes are factored into ratings, not just mechanics. Still waiting for ESRB's rating summary. Very curious to see what it has to say.05/28/2015 - 3:46pm
Matthew WilsonHatred is a top down shooter though, and isnt any worse than other top down shooters?05/28/2015 - 3:45pm
Wonderkarpyeah, San Andreases rerating was ridiculous. Why not rerate Skyrim with all its crazy sex mods out there? But yeah, ESRB is good as policing itself. 05/28/2015 - 3:45pm
Andrew EisenManhunt 2 and Hatred though? Eh, there's an argument to be made for the higher rating.05/28/2015 - 3:43pm
Andrew EisenRerating San Andreas was a mistake though. That seemed to be the result of kowtowing to public pressure.05/28/2015 - 3:42pm
 

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