Saturday, July 27, 2013

After only 10 years in business, Game Fly is able to rent and sell games using the internet download feature, (Wikipedia). Game Fly web-site may have a promising future because the market they are in is a staple market that does not require large investment.  They pay little to invest in their business; still they succeed in making the six digit number profit. According to Paid Content website
The Company, founded in 2002 and funded by Sequoia Capital, Tenaya Capital, and others, has a subscription service where it charges about $23 a month for unlimited rentals and game play. For the six months ended Sept. 30, Game Fly had revenues of $47.7 million, and $2.97 million in profits, compared with prior-year revenues of $39.4 million and profits of $5.4 million. For fiscal year 2009 ended March 31, it had net income of $4.0 million, on revenues of $84.67 million. It had about 334K subscribers at the end of September last year. Last year the company expanded beyond online, and partnered with Barnes & Noble (NYSE: BKS) to set up new G-Box Kiosks at various campus bookstores (Rafat Ali, web)
Another reason for their success is that Game Fly use whatever technologies exist and go beyond it. A person may download games to most electronics. According to Game Fly to Publish Ios, Android Games; Launch Android App Store article, “Game Fly cofounder and its senior vice president of business development and content, said in a statement
“We plan to be a leading player in mobile games by launching our retail Game Store for Android and helping to fund mobile developers of all sizes to publish, promote and sell their smartphone and tablet games”
They are always in the head of the game. According to an article in C/net website called Game Fly prepping digital-download service, Game Fly business will, “will give customers far more options than any competitor, by delivering the "ultimate choice of how, what, when, and where they game”(C/net). I believe GameFly business will eventually replace other non on-lines sites. They may replace other non-online business because they are cheaper and more convenience. Some investors invest their money in the web-site.  Michael Moritz said, “the ranking partner at Sequoia Capital, has put an estimated $100 million of Sequoia's money into ten consumer ventures, including GameFly (online videogame rentals), Plaxo (online address books), Red Envelope and Zappos (e-tailing), plus a Web site for planning trips like rafting down the Colorado River (Kayak.com) and a way to play fantasy football on your cell phone (Digital Chocolate)” (Power to the people, on-line).
The company culture is to use every affordable technology for their advantage. For example, they use social media for communication.
Relying in so much affordable available technology to make a profit, may cost the website a law suit for CD,s copyrights!If a law suit takes place, the lawsuit will be an argument about  if the egg came before the chicken or the chicken came before the egg; which is mean it will be an argument of who come up with the  technology, who add to it, and   who sell what.
Game Fly is new business that has been here for only11 years; still they succeed of making an on-line business. They appeal well to their customers and they accelerate with the speed of technology acceleration. The down side of their business is the copyright issue, and so far, they do not have any claims or legal issues with Microsoft or Xbox business.



Work Cited
“C/net.”GameFly prepping digital-download service. 9 August, 2011. Web. 21 June 2013.
“Game Rental Service Gamefly Files For IPO; Up To $50 Million Raise.” Paid Content. Web. 2 February. 2010. 5 July. 2013.
“PC.” Will Microsoft allows Xbox One game rentals? Even rental companies don't know. 22 May, 2013. Web. 21 June 2013.
GameFly, Games delivered site. The Best Way to Buy and Rent Games, 2012. Web. 20 June. 2013.
Moscaritolo, Angela. "Gamefly To Publish Ios, Android Games; Launch Android App Store." PC Magazine (2012): 1. Academic Search Complete. Web. 22 June 2013.

Wikipedia contributors. "GameFly." Wikipedia, The Free Encyclopedia. Wikipedia, The Free Encyclopedia, 2 Jun. 2013. Web. 21 Jun. 2013.

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