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Q: Video Game Rental Statistics ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Video Game Rental Statistics
Category: Computers > Games
Asked by: fp9200-ga
List Price: $50.00
Posted: 30 Jun 2006 05:27 PDT
Expires: 30 Jul 2006 05:27 PDT
Question ID: 742304
I would like to know the following about the video game rental market
and used game sales in the US (please
provide links or quote sources). I have found information about the
video game market in general (i.e.
http://answers.google.com/answers/threadview?id=538229), but I have
not found very many stats on specifically renting games or buying used
games.

1. Total spent in US renting games in a year.
2. Total spent in US on purchasing used games.
3. Average number of games that renters rent a month or year
4. Number of people who rent games online and offline.
5. Number of people who buy used games.
6. Average price for a game rental.
7. Average price for a used game.
8. US game renter demographic profile - Age, gender, location, income
level, education
9. Size of US gaming rental market and used game market.

Request for Question Clarification by bobbie7-ga on 02 Jul 2006 08:24 PDT
Hello Fp9200,

I'm the same researcher that answered the other video game market
question you mentioned.

I can provide you with answers to some of your questions.

-  Size of the U.S. game rental market
-  Size of the used game market
-  Average number of games that a gamer rents per month
-  Average price for a game rental.
-  Average price for a used game.

Would this information be of your interest. IF so, please let me know
and I will post my findings in the answer box.

Thank you 
Bobbie7

Clarification of Question by fp9200-ga on 03 Jul 2006 06:28 PDT
Hey bobbie7, if the information is different than your other post,
then I think that would be a great start, so sure, go ahead.

Do you know how to get any of the other information? I am trying to
build a profile of the rental and used game market verses the standard
"buy new" market.

Any answers you think would help me compare the differences would be
great. Let me know if you need any other clarification.
Answer  
Subject: Re: Video Game Rental Statistics
Answered By: bobbie7-ga on 03 Jul 2006 10:02 PDT
Rated:4 out of 5 stars
 
Hello Fp9200,

Thank you for your positive response to my clarification request. The
results of my research is as follows:



-  The video game rental market is worth $700 million.

-  Average price for a game rental is about  $6.

-  Almost all gamers rent games 

Excerpts:

?Salt Lake City-based Overstock, GameFly and others are hoping to
vacuum up a bigger share of the $700 million game rental market, with
a subscription model similar to that of DVD phenomenon Netflix Inc.
For a monthly fee, gamers can rent one or two games at a time, keep
them as long as they want, mail them back when they're finished using
the postage-paid return envelope, and wait for delivery of the next
game on their list.

But it's still a fledgling market, and companies like GameFly have to
convince users that it's worth it to pay $15 or $21 per month when
they can go to their local video store and rent a game for about $6.?


Market share

?Blockbuster Inc. currently enjoys the lion's share of the video game
rental market--it took in almost $500 million in game rentals last
year? The couple hundred million left over belongs to the online
rental market, where GameFly and several smaller companies are vying
for gamers' attention.?


GameFly Chief Executive David Hodess said that ,  "almost all gamers
rent games--that's a fact that everyone in the industry is aware of."


?GameFly offers used titles for purchase at a 20 percent to 30 percent
discount--and they'll send the original packaging.?


Source:
Los Angeles Business Journal,  April 3, 2006  
http://findarticles.com/p/articles/mi_m5072/is_14_28/ai_n16123979



==================================================



Gamers rent an average about 11 games per month.


?Renting Games Provides Opportunity for Trial, Often Leads to Purchase

Video game rentals are a popular way for gamers to decide if they want
to invest the money to own a title.
More than 50 percent of the respondents rent video games, on average
about 11 games per month.

More than 60 percent of those who rent games say they eventually
purchase the title they rented.?

IGN Entertainment 
http://corp.ign.com/articles/599/599801p1.html


==================================================


$4.00 to $6.00 dollars per video game rental

?The average video store charges from $4.00 to $6.00 dollars per video
game rental. That could get expensive, especially if you're renting
numerous titles per week. Most of the well known game rental clubs
like GameFly, Gottaplay, Intelliflix and RentZero only charge $12.95
to $19.95 per month for unlimited video game rental. So let's say you
rent 2 titles per week at the local video store. That equal around
$30.00 dollars per month compared to $12 to $13 dollars per month with
the online alternative. This is a large savings at the end of the
month.?

People rent for 4 primary reasons. 
1. The convenience 
2. Its cheaper 
3. Able to test games
4. Time 

http://www.taylorswebworld.com/games.html


==================================================


The  Game Rental Guide provides the top 5 online rental club
memberships according to price, service, quality, stock, and shipping,
among many other categories.


- GOTTAPLAY
- GAMEFLY
- INTELLIFLIX
- RENTZERO-  
- REDOCTANE

Read each review here:
http://gamerentalguide.com/reviews.htm


==================================================


Q. What's the range in price for monthly video game subscriptions?

? It varies depending on the plan.  Most plans range between $14.00
per month for 1 rental at a time up to $35.00 per month for 5 rentals
at a time.?
http://www.toptenreviews.com/video-game-rentals.html


==================================================


?Video game rentals are a popular way for gamers to decide if they 
want to invest the money to own a title.

More than 50 percent of the respondents rent video games, on average
about 11 games per month. 

More than 60 percent of those who rent games say they eventually
purchase the title they rented.? 


TMC Net : March 28, 2005 
http://www.tmcnet.com/usubmit/2005/Mar/1128592.htm


==================================================



Used game market estimated to be worth $800 million.


?Previously, big box retailers have avoided selling used games,
leaving that market (estimated to be worth $800 million) to specialty
stores like Gamestop and Electronics Boutique (Research). Gikas,
though, thinks the tide may be turning.?
 
CNN: September 30, 2005:
http://money.cnn.com/2005/09/30/commentary/game_over/column_gaming/index.htm



==================================================



A used game can cost 50% less than a new one.

?Meanwhile, pre-owned video games are being snapped up by consumers
who want to save up to 50 percent or more on discs, which can cost $50
or so new.?

?Analysts estimate that the used video game market may be draining
$800 million a year ? or 10 percent of the video game software market
? away from new game sales.?

?Demand for used video games is accelerating.? 

?GameStop said recently that itsthird-quarter sales soared 28 percent,
to $534 million, largely driven by demand for used video games.?

?Best Buy is considering the burgeoning used video game market because
of high margins, which can reach 45 percent compared with about 25
percent for new titles.?
 
Signonsandiego.com: January 2006
http://www.signonsandiego.com/uniontrib/20060104/news_1b4video.html


==================================================
 

?The appeal for consumers is obvious. GameStop (Research) currently
sells new copies of "Halo 2" for $38. Used copies are $25. More recent
titles typically sell at less of a discount ($45 instead of $50, for
example).?

?Retailers see vastly higher profits from the sale of used games.
Gross margins on used game sales are typically 40 percent or higher,
according to Mike Wallace of UBS Securities.?

CNN: September 2005
http://money.cnn.com/2005/09/30/commentary/game_over/column_gaming/index.htm



==================================================


Search terms:
Video game rental market  million
used video games market  million


I hope the information provided is helpful!

Best regards,
Bobbie7

Request for Answer Clarification by fp9200-ga on 04 Jul 2006 07:46 PDT
Hey bobbie7, thanks for the response. Do you happen to have any
demographic data on this subject? Finding information about income
levels, education, and such seems tough to come by...

Again, thanks for the answer and the links. Very helpful.

Clarification of Answer by bobbie7-ga on 04 Jul 2006 08:14 PDT
Fp9200,

I was surpirised that I wasn't able to locate demographic information.
I'll search once more and if I find something relevant I'll post it
here.

Best regards, 
Bobbie7
fp9200-ga rated this answer:4 out of 5 stars

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