Andre Yoskowitz
27 Jan 2012 14:10
During Netflix's quarterly earnings report, CEO Reed Hastings made it clear that the company's possible endeavor in to game rentals is dead.
The CEO simply stated the company has "no plans to enter video games."
During the summer, as Netflix prepared to spin-off its DVD-by-mail service into "Qwikster," the company hinted that it was preparing to get into the game rental business, making Xbox 360, PS3 and Wii titles available by mail. Within weeks, however, Qwikster was dead and the game rental idea was put on the shelf.
With Netflix bowing out, GameFly remains the only major by-mail rental outfit for games, but the price can be hefty at $16 per month for one game out at a time, and $23 for two.
Although the company did not disclose why it killed the idea, it is likely because the expense of signing deals with major publishers was too much to handle for the company that is expanding streaming internationally and building its catalog at a fast pace.