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Game Fly
CS 453 E-Commerce TechnologiesCase Study One
September 11, 2007
Carlos Valle Robert Yip
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
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
Distribution hubs at Los Angeles, CA initially, expanded to include Pittsburgh, PA
Over 5000 video game titles to choose from [2]
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 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.1. One game out at a time costs $15.95 per month. 2. Two games out at a time costs $22.95 per month. (This is the
most popular and promoted plan.) 3. 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.
4. 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
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
‘Q’ is a priority queue [2]
Shipping priority
Various systems
Option to buy
Current rentals
Availability
What Was the Need?
Similar to Netflix, more convenient In-store video game rentals more expensive
than movie rentals
Convenience Cheaper
Simple interfaceTry Before Buy
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
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]
Screen shots
Competitors
Other online video game rental services• Gotta Play
• Gameznflix
• DVD Avenue
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
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
Advantages• Also offers DVDs
Disadvantages• Focus is on DVDs
• Only offers Playstation, Playstation 2, and Xbox games [1][6]
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
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
Friendly user interface Discounted prices Commercials on television Free 10 day trial [2]
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
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
1. http://www.allgamerentals.com/2. http://www.gamefly.com3. http://en.wikipedia.org/wiki/Gamefly4. http://gameznflix.com/hello/default.htm5. http://www.gottaplay.com/6. http://www.dvdavenue.com/user/
homeNewUser2.php7. http://www.gamespot.com/wii/action/
metroidprime3/index.html?tag=topten;all;img;08. http://www.blockbuster.com/