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/