Redbox is taking a very measured approach when it comes to renting video games at its kiosks, says Merriman Curhan Ford analyst Eric Wold. The company is offering limited titles and quantities in its three video game test cities, which is a disappointment to the analyst.
Besides trial runs in Reno, Nevada, and Wilmington, North Carolina, Redbox is currently testing video game rentals at 150 kiosks in Austin, Texas, for $2 per day. In a survey of the Austin kiosks, Wold found an average of just 2.8 video game titles per kiosk, as well as a disproportionate representation of games for the three major consoles, with the PS3 (the least successful of the major consoles in America) having the largest share of games. Said Wold:
“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 believes that Redbox will see success with its video game rental program, provided that selection and quantity improve:
“Given that the average rental period for a game is likely to be longer than for a movie (to give time to solve the game) along with the $2/day rental price, we expect the returns to be strong as long as the appropriate mix of games is available,”
Will video games become a major revenue generator for Redbox, or will the price point over multiple days of rental prove to be too high? Hit the comments and tell us if you would be interested in renting a game from your local Redbox.
(via Home Media Magazine)