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
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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
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$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
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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
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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
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?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
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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
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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
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?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
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Search terms:
Video game rental market million
used video games market million
I hope the information provided is helpful!
Best regards,
Bobbie7 |
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