Can GameFly’s Digital Downloads Work?

The very idea of renting games through the mail is a weird one, but it didn’t take long for GameFly’s mail-based game rental service to tear a few mouthfuls out of Blockbuster, the former king of temporary video game ownership. Going digital is a logical move for GameFly, and indeed, the rental service will be offering downloadable alternatives for clients who’d rather not mess with mailboxes.

According to GameFly co-founder Sean Spector, “Now GameFly subscribers will have access to a library of PC catalog titles to play as often as they want and as long as they are a member. It’s kind of like a Spotify or Rhapsody or a Napster. You have access to the content as long as you are a subscriber, but when you are no longer a member, the content then disappears.”

Subscribers will be able to download an unlimited number of games in GameFly’s digital library, which Spector promises will grow substantially from its initial 100 titles. The service will only host PC games to begin with, and Mac titles will eventually follow.

Though GameFly’s “upgrade” to the digital world makes a lot of sense (and for purists, don’t worry, the mail-order program isn’t going anywhere, at least not yet), it’s yet another entry in what’s becoming a very busy digital marketplace. Is there room for another digital download game service?

Sure there is. Consider the earlier days of game retail, when everyone sold Atari, Nintendo, Sega, and Game Boy consoles and titles. It seemed like every department and hardware store got into the act. The rise of GameStop greatly whittled down the number of game retailers across North America: There simply wasn’t a need for so many stores to stock expensive cartridges and systems, though it’s nostalgic to think back on the days when we could buy a bundle of two-by-fours and Final Fantasy in the same transaction.

Currently, digital marketplaces and streaming services are in a similar state of flux: Digital distribution is new, shiny, convenient, and every provider currently on the market wants to be “the” answer for anybody who’s looking to ditch retail.

Will everybody survive the venture? Heck no. Again, recalling the earlier days of game retail, distributors need time to experiment and find their legs. Over the next five years, we’ll see plenty of mergers and buyouts and a little bankruptcy. When those five years are up, will GameFly be standing near the top of the heap with its own name and backbone? Hard to say, but the company has a good thing going with its mail-based program, so with careful marketing (and a drive to provide plenty of PC, Mac, and console games), its chances for a widespread and successful digital market aren’t too bad at all.

About Nadia Oxford
Nadia is a freelance writer living in Toronto. She played her first game at four, decided games were awesome, and has maintained her position since. She writes for 1UP.com, Slide to Play, GamePro and other publications, and is About.com’s Guide to the Nintendo DS.

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