Redbox, known for giving Blockbuster and Netflix a run for its money with slow-tech physical DVD-rental kiosks, could soon change its game ... to games. Redbox is currently embroiled in lawsuits and counter-lawsuits with Warner, Fox, and NBC Universal who've cut off access to their titles (they say, essentially, that dollar DVDs are too cheap).
But video game companies may not be so rigid. Redbox is talking with game providers and even testing out new Gamebox kiosks in a handful of location, hoping to set up a new revenue stream. It's easy to see the test kiosks expanding nationwide. Netflix is betting its future on streaming video via PCs, dedicated boxes, and game consoles—it has never touched on the other disc-based medium, video games.
Gamefly, however, is a sort of Netflix of gaming, mailing discs to its members. In other words, while Redbox would get a leg-up on its competition with Netflix, it would face a new adversary in Gamefly. The game-rental service has been around since 2002 and sends out more than 500,000 games a month. But Netflix's success hasn't stopped Redbox, why would Gamefly's?