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Game Fly

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Game Fly

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  1. Game Fly CS 453 E-Commerce Technologies Case Study One September 11, 2007 Carlos Valle Robert Yip

  2. 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.)

  3. 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]

  4. Background – Present Day • Distribution hubs at Los Angeles, CA initially, expanded to include Pittsburgh, PA • Over 5000 video game titles to choose from [2]

  5. 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]

  6. 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]

  7. 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

  8. My Game Q • ‘Q’ is a priority queue [2] Current rentals Various systems Option to buy Availability Shipping priority

  9. 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

  10. 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

  11. 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]

  12. Screen shots

  13. Competitors • Other online video game rental services • Gotta Play • Gameznflix • DVD Avenue

  14. 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]

  15. 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]

  16. DVD Avenue • Advantages • Also offers DVDs • Disadvantages • Focus is on DVDs • Only offers Playstation, Playstation 2, and Xbox games [1][6]

  17. Maintaining the Value Chain • Value Chain Pirate • Displaces Blockbuster and other video game rental centers • Offers innovative rental solutions which Blockbuster has mimicked [8]

  18. 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

  19. Marketing Strategies • Friendly user interface • Discounted prices • Commercials on television • Free 10 day trial [2]

  20. 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

  21. 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]

  22. 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/