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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

Game Fly

CS 453 E-Commerce Technologies

Case Study One

September 11, 2007

Carlos Valle Robert Yip

netflix equivalent for gamers
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
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]
background present day
Background – Present Day
  • Distribution hubs at Los Angeles, CA initially, expanded to include Pittsburgh, PA
  • Over 5000 video game titles to choose from [2]
the service
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]
options
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]

how it works
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
my game q
My Game Q
  • ‘Q’ is a priority queue [2]

Current rentals

Various systems

Option to buy

Availability

Shipping priority

what was the need
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

expansion of game fly
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

service
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]
competitors
Competitors
  • Other online video game rental services
    • Gotta Play
    • Gameznflix
    • DVD Avenue
gotta play
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]
gameznflix
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]
dvd avenue
DVD Avenue
  • Advantages
    • Also offers DVDs
  • Disadvantages
    • Focus is on DVDs
    • Only offers Playstation, Playstation 2, and Xbox games [1][6]
maintaining the value chain
Maintaining the Value Chain
  • Value Chain Pirate
    • Displaces Blockbuster and other video game rental centers
    • Offers innovative rental solutions which Blockbuster has mimicked [8]
target audience
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
marketing strategies
Marketing Strategies
  • Friendly user interface
  • Discounted prices
  • Commercials on television
  • Free 10 day trial [2]
opinion viability
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
opinion improvements
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]
references
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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