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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.
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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.
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(via Home Media Magazine)

14 Responses to “Analyst: Redbox Taking it Slow on Game Rentals”

  1. Member [Join Now]
    Bikemiles [bikemiles]

    Today in Minneapolis the Redbox had a new interface that said movies or “other”. Another change was a tab on movie descriptions telling if the movie was for sale for $5

    That said, nothing but regular DVD’s in machine.

  2. Visitor [Join Now]
    Firstlawofnature [visitor]

    Given the success of movies and constraints in available slots it seems that there is a limit to how big gametacs can be. If they attack the market in a different way perhaps it can be bigger – new dedicated kiosk perhaps.

    • Visitor [Join Now]
      urannoying [visitor]

      this site is down to what five to ten post a day. you think maybe people are sick of your know it all day after day comments? you ruin and distract from this whole site!

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      And you really care about the quality of this site right? Get back to figuring out how those new tanning bed taxes are going to work.

  3. Visitor [Join Now]
    Farva [visitor]

    Maybe we will see more dual kiosk locations in the near future to accomodate BluRay and video games.

  4. Member [Join Now]

    I think that video games might be sucessful to them…although Gamefly already exists

  5. Member [Join Now]

    Bikemiles, we got a makeover on our RB interface here in Ohio about two or three weeks ago. Looks like RB is looking into expanding their offerings, otherwise it would be silly to upgrade the familiar layout. Still just DVDs in all our local machines as well.
    Video games in the RB would be good…if they rent Wii titles since that’s the system I own. The only source for vg rentals here is at Family Video…and Bloatbuster across town.

  6. Visitor [Join Now]
    hahaha [visitor]

    when my local rb’s got the interface makeover they popped in invictus on blu ray but unfortunately thats the only one offered in blu-ray no wii yet however with netflix on wii out there im sure that will nix any wii rental plans from rb as netflix will corner teh market

  7. Visitor [Join Now]
    PJ [visitor]

    Honestly, it is a good theory but the $2 a night can add up and I wouldn’t rent it if that’s the case. Maybe if you did a multi day rental for games that wouldn’t be bad. I am still waiting on the Blu Ray DVD’s though. Seen it on the site for a long time but nothing still.

  8. Visitor [Join Now]
    UBM [visitor]

    I for one like the $2 a day Video Rental Game Price.
    Family video rents their video games for $2.99 1 day,
    3.99 for two days, and $6.99 for 5 days, and on average we play
    video games we rent over a three day weekend ( friday night to Sun night).
    So $6.00 for rental vs. $7 says me a buck and adds up in the long run.

    We only have three BB’s left, and they rent games for $5 for two nights here in OKC.

    Now, if they get Wii games, I’m there. We got the software upgrade
    to the kiosks here too, and they’ve added two more “B” machines
    in key areas to help with traffic, but no BluRay no Games yet.

    I’m cross posting this over on Redbox’s Facebook page ( which they pay attention to) so they know Bring on the Video Game Rentals!!!

  9. Visitor [Join Now]
    Genaro Lowber [visitor]

    In contrast to the mainstream ideas, I have to disagree with you, as there are simply so many different factors to consider. Effectively if you’re open for link change, perhaps we must always keep up a correspondence with one another, in order that we are able to build a better blog together. What do you suppose?

  10. Visitor [Join Now]
    Robbin Bedwell [visitor]

    The first thing you’re going to notice with Madden NFL 11 is the new GameFlow play-calling system, which simulates the way games are actually called in today’s NFL.