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SALT LAKE CITY -- Redbox, the company made famous for its role in revolutionizing the video industry away from brick-and-mortar rental stores, started offering video game rentals last week through its chain of kiosks. To many, this move comes surprisingly late in the game. Companies like Blockbuster and the now defunct Hollywood Video added video games to their rental offerings many years ago.
For others, this move is expected and appropriately timed. Many have noted that Netflix, the leader in delivering entertainment to mailboxes, has yet to foray into the world of video game entertainment offerings. This is not to say the service has been completely absent in the industry, however. Services such as GameFly and Blockbuster include video games as part of their monthly subscription offerings, delivering games that include a pre-paid return envelope for a reasonable recurring fee. In yet another parallel to the video industry, companies offering online on-demand gaming for a low monthly fee are beginning to grow. Firms such as GameTap and OnLive have launched and are trying to establish themselves as a new market for the dedicated gamer.
The evolution of gaming is to a point where all games, even relatively simple games franchises such as Mario, involve extended plots that can require days if not weeks to play through and enjoy.
Redbox has set the price for its game rentals at $2 a day. The effectiveness and success of its pricing model remains to be seen. The daily rental fee has worked well for films, which generally take only a couple of hours to enjoy before they are returned. Unless a household includes small children, it is unlikely an average consumer will want to see a film more than once in a short period of time.
Video games, however, are usually an immersive experience. Unlike arcade games such as Pong and Pac-Man of yesteryear, most games today cannot be played and enjoyed in a small period of time. The evolution of gaming is to a point where all games, even relatively simple games franchises such as Mario, involve extended plots that can require days if not weeks to play through and enjoy.
The practicality of paying a relatively high daily price will necessarily precipitate the quick return of any game. Given the strong resale market for video games, consumers may turn to secondary markets as a first choice.
This is not the first time Redbox and its offerings have been questioned. Early on, it seemed unclear how a box that would bill a dollar a day could remain in business, especially with such a small product offering. Only carrying the newest releases, it seemed unbelievable this new contraption could successfully compete against the oversaturated video rental store market. Time proved the kiosk rental model could not only prevail, but threaten other industries in the process as a result of the convenience it provided to consumers. Given the demise of the rental store, removing many of the previous outlets offering video game rentals, the kiosk model may be able to infuse sufficient value to prove successful yet again.
Perhaps the greatest strength of the quick video game rental service will be the exposure it can provide to various video game titles. Before making the significant investment to purchase a new release, gamers could play through part of it to make sure it fully captivates their attention. This would also provide an avenue to explore other genres that may have appeared impassible due to the high cost of game ownership.
One of the other major strengths, and perhaps the force that will allow it to best succeed, will be the ability to cater to the impulse rental. Consumers are frequently diverted to well-placed video rental kiosks conveniently stationed near the entrance to supermarkets and other retail stores. A shopper may not have planned to rent anything, but in browsing through the offerings will spot a must-see film and swipe a credit card. The same may hold true for video games. Although unintended, a shopper may see a new game advertised on Redbox and spring for it.
The video game industry is several years behind Hollywood in terms of transitioning to new forms of delivery. Perhaps as a result of high costs, society remains in the dark ages of gaming. Gaming on-demand and postal game rental services have not caught on to the degree that their respective music and video technology counterparts have. Tied to this, the degree of video game piracy seems to be relatively small.
Redbox, in traditional evolutionary fashion, has innovated a new offering that could help launch the next phase of gaming history. Even if it is too little too late, this new product offering will certainly face a decent level of adoption that will continue to propel Redbox in its competitive fight for a share of global entertainment revenue.
Joseph Irvine is a self-employed computer engineer in Madison, Alabama. A graduate of Utah State University, he hopes to pursue a degree in law at BYU in the near future.
