Game Fly CS 453 E-Commerce Technologies Case Study One September 11, 2007 Carlos ValleRobert 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 r able, 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 ConvenienceCheaper 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 gamePurchase and keep it

Service Game Fly provides and phone customer service. 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

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]

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