Google Answers Logo
View Question
 
Q: Video Game Rental Business ( No Answer,   1 Comment )
Question  
Subject: Video Game Rental Business
Category: Business and Money
Asked by: blueniger-ga
List Price: $40.00
Posted: 03 Nov 2004 20:25 PST
Expires: 03 Dec 2004 20:25 PST
Question ID: 424175
Hello,

We're looking to start an online video game rental business.  We're
looking for sources to get the video games.  We don't know if we can
just buy games at wholesale prices and just rent them out - this is
probably not the way to go about it.  So any informatiion and sources
to this regard will be greatly helpful.

We would like information on how to begin the business, sources on
where to get the games to rent, a list of online video rental sites
out in the market.  Most important is where and how to source for the
games to rent.

Additionally, we would like to get information on the video game
industry - any data or research supporting rental trends and culture.

Thanks.
Answer  
There is no answer at this time.

Comments  
Subject: Re: Video Game Rental Business
From: educated_idiot-ga on 07 Nov 2004 11:52 PST
 
Companies which rent out video games typically buy them directly from
the publishers.  You would have to negotiate contracts with each
publisher separately.  A short list of video game publishers includes:
Electronic Arts, Take Two Interactive, Activision, Eidos, Ubisoft,
LucasArts, THQ Interactive, Acclaim (ch.11).

The arrangements are usually structured as a discount to the typical
wholesale price + a portion of rental revenue -- however, each
publisher handles this differently.  For example, a game that retails
for $49 will have a wholesale price of $39.  Companies like
Blockbuster or Hollywood Video will buy these games at a discount to
$39 from the publisher, at say $25, and sometimes pay a portion of the
rental revenue on those games back to the publisher.  This sort of a
model helps to decrease the risk of the video game renter as it
insulates them slightly when a game performs poorly in the market.

Some publishers own their own distribution channels, while others use
3rd party distributors.  Take Two Interactive, for example, runs the
Jack Of All Games distribution business.  Talk directly to each of the
publishers and they will let you know where you can source their
products from.

The industry standard for video game sales reports is NPD Funworld. 
The reports are pricey, but this is the data that everyone else uses. 
It is certainly invaluable data if you are trying to determine the
number of units you should carry for each game.  I believe they cover
70% of the US retail market (they used to), but that may have changed.
http://www.npdfunworld.com/funServlet?nextpage=index.html

I am very familiar with this industry and can probably provide some
clarifications if necessary.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy