Redbox is expanding into video game rentals as its parent company reported improved financial performance for the first quarter.
The kiosk DVD rental company said that after testing video game rentals for nearly two years, it will on June 17 begin offering titles such as Call of Duty and Super Mario Galaxy in more than 21,000 of its 31,800 locations around the country.
Games will cost $2 per night, compared to $1 for DVDs and $1.50 for Blu-ray discs.
In a conference call Thursday with analysts, Paul David, chief executive of Redbox parent company Coinstar Inc., said tests have indicated that the company can increase revenue by replacing 10% to 15% of the DVD slots in its kiosks with games.
The news comes as Redbox is recovering from a weak fourth quarter during which it overestimated demand for DVDs. Much of the problem resulted from certain studios' decision to block Redbox from offering their DVDs until 28 days after they go on sale.