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Videogames now available at Redbox

Kiosk rentals cost $2 a day

Redbox has begun offering videogame rentals at most of its kiosks across the country.

Company will rent games that can be played on all of the major consoles for $2 a day through 21,000 of its Redbox machines. Company operates 27,000 kiosks nationwide. Redbox rents DVDs for $1 a day and Blu-ray discs for $1.50.

The games are available day-and-date with their release in stores. Launch titles include Activision’s “Call of Duty: Black Ops” and “Transformers: Dark of the Moon”; Sony’s “Infamous 2″‘ Take-Two’s “Duke Nukem Forever”‘ Rock Star’s “L.A. Noire”; Bethesda’s “Brink”; Disney’s “Lego Pirates of the Caribbean: The Video Game”; THQ’s “Red Faction: Armageddon,” “Rio” and “You Don’t Know Jack”; and Ubisoft’s “Just Dance 2” and “Michael Jackson: The Experience.”

Redbox is expanding its product line after testing videogame rentals at 5,000 kiosks in select U.S. markets since August 2009. It found that renters typically keep a game for two to three days. With the option to buy, 33% of renters also opted to purchase games at the full price.

Nearly 64% of people in the U.S. own a videogame console, according to Interpret.

“Redbox has rented more than 1 million videogames in less than two years at these locations, underscoring the popularity of videogame play in America,” said Mitch Lowe, president of Redbox.

Company, owned by Coinstar, moved to add videogames to its kiosks because it can offer such titles at a higher rental price and because games are typically not offered at supermarkets, convenience and drugstores, where most of its boxes are located, providing Redbox with an opportunity to enter an untapped market.

Redbox will also offer consumers the ability to rent games the way it offers movies, allowing renters to locate titles at kiosks near them and reserve games online. By offering games, Redbox will now compete with Netflix-like GameFly, which offers games to rent by mail. That venture charges $16 a month to rent one of 7,000 titles at a time, and $23 for two titles.

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