Redbox Expanding Video Game Offering12 Jun, 2015 By: Erik Gruenwedel
Redbox June 12 announced it will begin renting out exclusively new-release video games for the Xbox One and PlayStation 4 consoles across its nationwide network of 40,000 kiosks.
The kiosk vendor entered the games market in 2011 and currently generates about 2% of its $1.9 billion in disc rental revenue renting Xbox 360 and PlayStation 3 games.
With a digital marketing network spanning more than 90 million touch points, including 41 million email subscribers, 29 million app downloads, 16 million unique monthly website visitors, 6.6 million SMS subscribers and 2 million Redbox Play Pass members, company president Mark Horak hopes to attract game publishers to the value of Redbox's expansive consumer data base at the Electronic Entertainment Expo (E3) June 16-18 in Los Angeles.
Redbox earlier this year hired Bill West as VP of video games to underscore the kiosk vendor’s increased interest in games.
“We see video games as a great opportunity for us given the value we offer mainstream consumers where we offer an overnight game rental for $3 versus consumers paying $60 to acquire a game,” Horak said.
Specifically, Horak eyes Redbox as a conduit between new generation video game consoles, software and the general public.
“The video game console transition is moving mainstream, and that’s where Redbox’s sweet spot is appealing to [video game] consumers with our service,” he said.
Kiosks will begin carrying about 15 to 20 new-gen titles in kiosks, up from five to nine older PS3 and Xbox 360 titles previously. The move toward new-generation games underscores what Horak describes as a rapid market adoption of Xbox One and PS4 hardware and software.
Redbox will also begin upping new gen games throughout its network marketing campaigns in an effort to generate more game play.
Publisher Bethesda Software cited as “invaluable” Redbox’s digital network in marketing recent new release, The Elder Scrolls Online: Tamriel Unlimited.
“We feel we can raise interest, awareness and adoption of new gen games. We look forward to talking to the publishers next week [at E3] about specific plans how we’re going to that,” Horak said.