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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Andrew EisenPM - Yep, that's the one.03/06/2015 - 12:53am
TechnogeekBest case, it was some marketing douchebag who thought they could pander to both sides at once.03/06/2015 - 12:49am
TechnogeekAlso, this was the mistake tweet: http://i.imgur.com/4eLWNHx.jpg03/06/2015 - 12:48am
TechnogeekBecause nothing says "open, diverse gaming community" like buddying up with Breitbart.03/06/2015 - 12:47am
Papa MidnightAndrew Eisen, I believe this is the picture that you seek: http://i.imgur.com/Gdk60pa.jpg03/06/2015 - 12:30am
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prh99Craig R. Cause quite a few of them are not, they're bullies with different politics.03/06/2015 - 12:23am
MechaTama31What was the "mistake" tweet?03/06/2015 - 12:18am
MechaCrashWhatever you say, Goth.03/06/2015 - 12:02am
E. Zachary KnightGoth, they could have fooled me.03/05/2015 - 11:16pm
Goth_SkunkI don't understand. GamerGate supports an open, diverse gaming community for all as well. Google's statement is contradictory.03/05/2015 - 10:59pm
TechnogeekAnd as far as the Card thing went, I basically balanced it out personal guilt-wise by donating an amount equal to the Shadow Complex purchase price to the ACLU.03/05/2015 - 9:44pm
TechnogeekWelp, look like the Gerberghazi crowd is going to have to use Bing now. https://twitter.com/googlecloud/status/57365320825126093003/05/2015 - 9:42pm
Goth_SkunkAhh! I misinterpreted your statement about being left with almost every game in existence. I interpreted it as 'If you boycott games he's been involved with, you're boycotting almost all of them.'03/05/2015 - 9:31pm
Andrew EisenGoth - Card has been involved with only a small handful of games so if one were to boycott games for his involvement, they wouldn't be missing out on many games.03/05/2015 - 9:29pm
Goth_Skunk@Craig: Only if you're not interested in seeing it end.03/05/2015 - 9:27pm
Craig R.Instead of calling people the "anti gamergate faction", you could just call them "sane"03/05/2015 - 9:23pm
Goth_SkunkWhat do you mean 'almost every game in existence'? Card is a writer, not a game developer.03/05/2015 - 9:18pm
Andrew EisenBut I too wonder how many people who cry boycott actually follow through. I vaguely remember a few years ago a bunch of people boycotting one of the CoD games and were all found playing it on Steam.03/05/2015 - 7:53pm
Andrew EisenAn interesting quandary but not equivalent as boycotting games that Card was involved with leaves you with... well, almost every game in existence.03/05/2015 - 7:51pm
 

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