[quote name='Puffa469']2) Games by mail is expensive, potentially a lot more expensive to maintain than movies by mail where someone typically watches said movie, then ships it back. Games take considerably longer to use, are subject to more wear, and (except in the case of PS3 games) show quicker tendency to wear out.
- Nonsense. Initial costs of game discs is more than films, but shipping, wear and tear, etc is the same. If someone holds a game longer than a movie, then Netflix saves on shipping costs, which MAKES money for them. [/QUOTE]
Does anyone here know what it costs to buy a "rental" game? Video stores pay hundreds for each movie copy, but I have no idea how much Blockbuster and the like pay for each game copy they rent. Probably hundreds more than the average movie, but again I have no idea and am too lazy to do the research right now.
Also, the longer each customer holds each game, the more copies Netflix would need to have in order to avoid customer frustration over waiting forever to get the game in the mail. This means they would need many more copies of "big" games because more people want them and each person keeps them for a long time.
[quote name='Puffa469']3) Netflix already gets a lot of profit out of the system they have. Adding a lot more content and discs to manage would mean taxing the system they already have.
- The number of games titles they would have to add would be small compared to the number of films they already have in their system. If they have 50,000 titles on dvd, an extra one or two thousand game titles would not tax that system significantly.
4) They already make a load of money. Why would they need to add another service when they've got all the business they could ever want right now?
- Netflix is a publically traded company. The goal of any public company is to increase shareholder revenue. This is done through constant growth. If they arent adding enough new users to grow the company, they would certainly consider adding additional services and revenue streams. Renting games is a no brainer growth idea.[/QUOTE]
Public corporations never actually have to share revenue with shareholders. It's true their mission is to increase the value of stock in the long run, but that doesn't always mean growing the company if it is not going to be fruitful. A wise board of directors may not approve of renting games by mail because they cannot see it making enough money to be worth the planning and investment it would take.
[quote name='Puffa469']5) Redbox ain't doin' it.
- This has nothing to do with anything.[/QUOTE]
Sure it does. Redbox is in direct competition with Netflix, despite the method of distribution. If Redbox deployed game rentals in their machines nationally, it would open up that market and maybe Netflix would try to compete in order to avoid losing its customers.
IMO though, game rentals will eventually be mostly digital just like movie rentals, so Netflix probably doesn't want to get into a dying business. Just my 2¢.