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Game Fly. CS 453 E-Commerce Technologies Case Study One September 11, 2007 Carlos Valle Robert Yip. Netflix Equivalent for Gamers. Online video game rental subscription service Fixed monthly rates for rental

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Game fly l.jpg

Game Fly

CS 453 E-Commerce Technologies

Case Study One

September 11, 2007

Carlos Valle Robert Yip


Netflix equivalent for gamers l.jpg
Netflix Equivalent for Gamers

  • Online video game rental subscription service

  • Fixed monthly rates for rental

    • Two games out at a time costs $22.95 per month. (Most popular and promoted plan.)


Background the beginning l.jpg
Background – The Beginning

  • Launched on September 8, 2002

  • Founded by

    • David Hodess, CEO & President

    • Sean Spector, Co-Founder and VP of Business Development and Marketing

    • Jung Suh, Co-Founder and VP of Content and Strategic Alliances

  • Headquarters in Los Angeles, CA [3]


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Background – Present Day

  • Distribution hubs at Los Angeles, CA initially, expanded to include Pittsburgh, PA

  • Over 5000 video game titles to choose from [2]


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The Service

  • Video Game Rentals

    • Sony Playstation 2, Microsoft Xbox, Nintendo Gamecube – September 2002

    • Game Boy Advance – Late 2002

    • Nintendo DS – November 2004

    • Sony Play station Portable – March 2005

    • UMD movies – April 2005

    • Xbox 360 – November 2005

    • Nintendo Wii, Play station 3 – July 2006 [3]


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Options

  • Four different plans offered, depending on how many games are rented at a time.

  • All plans are for unlimited games, meaning that the user is not charged on a per-game basis, but on a monthly basis.

    • One game out at a time costs $15.95 per month.

    • Two games out at a time costs $22.95 per month. (This is the most popular and promoted plan.)

    • The three game out at a time plan, which is only eligible to users in good standing for a duration of 60 days, costs $29.95 per month.

    • The four game plan, which is only available to eligible users in good standing for about 60 days as well, costs $36.95 per month.

      [2]


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How It Works

  • Select a subscription plan

  • Payment linked to credit card

  • Add games to “My Game Q” based on priority

  • Games shipped through United States Postal Service in re-mailable, pre-paid envelopes

  • Keep the game(s) for as long as you want


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My Game Q

  • ‘Q’ is a priority queue [2]

Current rentals

Various systems

Option to buy

Availability

Shipping priority


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What Was the Need?

  • Similar to Netflix, more convenient

  • In-store video game rentals more expensive than movie rentals

Convenience

Cheaper

Try Before Buy

Simple interface


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Expansion of Game Fly

  • New-generation games are expensive

    • Xbox 360 – $59.99

    • Playstation 3 – $59.99

  • Online retailer makes shopping simple

Rent and try out game

Return for another game

Purchase and keep it


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Service

  • Game Fly provides email and phone customer service. Email customer service is available seven days a week with a 24 to 48 hour response window. Phone customer service is available Monday through Friday from 9am-1pm PST. [2]



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Competitors

  • Other online video game rental services

    • Gotta Play

    • Gameznflix

    • DVD Avenue


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Gotta Play

  • Advantages

    • Offers Game Boy Advance games

  • Disadvantages

    • Only 4000 titles compared to Game Fly’s 5000

    • Offers a maximum of 3 games out at a time [1][5]


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Gameznflix

  • Advantages

    • Offers DVD, Blu-ray, and HD-DVD movies

  • Disadvantages

    • Does not offer handheld console games like Playstation Portable, Game Boy Advance, Nintendo DS, or Universal Media Disc [1][4]


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DVD Avenue

  • Advantages

    • Also offers DVDs

  • Disadvantages

    • Focus is on DVDs

    • Only offers Playstation, Playstation 2, and Xbox games [1][6]


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Maintaining the Value Chain

  • Value Chain Pirate

    • Displaces Blockbuster and other video game rental centers

    • Offers innovative rental solutions which Blockbuster has mimicked [8]


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Target Audience

  • Teenagers to middle-aged adults who have Internet access

  • Gamers with no means of transportation

  • Enjoy the comforts of home

  • Value-conscious consumer


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Marketing Strategies

  • Friendly user interface

  • Discounted prices

  • Commercials on television

  • Free 10 day trial [2]


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Opinion: Viability

  • Will stay competitive as first rate renter if competitors do not

    • Provide faster shipping

    • Offer cheaper subscriptions

    • Develop innovative video game delivery options such as downloads


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Opinion: Improvements

  • Needs to expand beyond the two current shipping hubs

  • Maintain favorable and popular video game selection

  • Could slightly lower prices to have another edge over the competition

  • More advertisements [7]


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References

  • http://www.allgamerentals.com/

  • http://www.gamefly.com

  • http://en.wikipedia.org/wiki/Gamefly

  • http://gameznflix.com/hello/default.htm

  • http://www.gottaplay.com/

  • http://www.dvdavenue.com/user/homeNewUser2.php

  • http://www.gamespot.com/wii/action/metroidprime3/index.html?tag=topten;all;img;0

  • http://www.blockbuster.com/


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