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According to video game buy-sell-trade giant GameStop, it has nothing to worry about if/when Redbox expands its fledgling video game rentals beyond a few test markets. GameStop CEO Dan DeMatteo told shareholders on his company’s finanical results call today that such a scenario with Redbox wouldn’t be a cause for concern.
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Said DeMatteo:

“Redbox is testing video game rentals in some markets . . . Video game rental has always been a channel of distribution in the industry.
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I see it as a shift from rental stores to machines, if they are successful, and [it will have] no impact on our sales.”

Insiders, do you live in one of the Redbox video game test markets, and if so, have you rented a game? Is DeMatteo right about the lack of potential Redbox impact on his company? If there were a Redbox that stocked video games located near a local GameStop, would that in any way preclude you from doing doing business with the store?

(via Home Media Magazine)

11 Responses to “GameStop CEO: Video Games at Redbox Won’t Impact Us”

  1. Visitor [Join Now]
    tinybrat [visitor]

    The CEO is wrong. It will have a huge impact. Why? People will rent from redbox, and if they like it, perhaps buy it from gamestop.

  2. Member [Join Now]

    Best thing ever I can’t count how many games I’ve bought to only realize they suck. Better to waste a buck or two than fifty to sixty bucks on a cheezy game. Had gamefly but it was realy slow to get new release games to rent.

    • Member [Join Now]

      I agree for the most part. I have gamefly now and it takes a long time to get the next game, but I feel like its still worth it since I rarely play both games at the same time anyway

  3. Visitor [Join Now]
    Social Media Consultant [visitor]

    I’m excited about the move, I think it will hurt businesses that rent games more than those that sell them BUT if I sold them – like gamestop does, and redbox was cutting into my business – I would start a gamestop rental program, where you can rent any used game in the store for a buck a night. Then why go to redbox when gamestop has a better selection – you could even rent games like guitar hero, and rockstar with special extra equipment needed albeit for a few dollars more per night. – my two cents.

  4. Visitor [Join Now]
    Consumer [visitor]

    Renting video games is a very difficult process. Ask any independent video store owner. The reason is the wholesale cost. A new game is around $45 to $52. In order to make back your money you need to generate $80 to $100. You can’t do that at $1 per day. It’s impossible. At $2 per day you need to generate 40 to 50 days out, which is what Redbox is trying to do. Compare this to Redbox’s model of DVD’s at $8-$16 generating $24 to $30 in revenue or 24 to 30 days out, you see that you need to increase activity 66%.

    This is why Redbox hasn’t rolled this out nationwide. Now, if Redbox could get the discs for $25 to $35 then you could see this working for them. And it would affect Gamestop.

  5. Member [Join Now]

    I don’t think Gamestop will be effected too much by this. A lot of people shop there a lot. They will probably still get good buisness. That being said, Redbox will get a lot of good buisness, probably more than Gamestop

  6. Visitor [Join Now]
    Richard [visitor]

    The move by game developers to DLC (downloadable content) will be the demise of the second-hand/used game market. Some games even now come with printed notices that second-hand sales of the original disc will NOT include ALL features. Its an end-run around the First Sale Doctrine.

    So, unless you’re the first one to rent/register a game from a particular location, you might NOT get access to the “game” that you thought you would.

  7. Visitor [Join Now]
    justme [visitor]

    The thing with Gamestop though is that you can buy a USED game and can return it for any reason within 7 days. That gives you plenty of time to play it, possibly even beat it, and still be able to take it back. A day is really not long enough to play a game.

  8. Visitor [Join Now]