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.
No comments:
Post a Comment