GameStop Corp. (NYSE:GME) has announced that it is introducing a new subscription service that will let subscribers gain access to used rental games.
The company announced that the service will only allow users to rent one game at a time and allow them to play for as long as they would like before returning each game and picking another one. The new service was initially revealed through a leak but GameStop confirmed that it is working a used game rental service called Power Pass. Subscribers will pay a subscriber fee of $60 for six months and users will also get to keep the last title that they check out after the end of the six months.
The new program sounds quite appealing and the only catch is that those who want to take advantage of the subscription service will have to be members of the company’s PowerUp Rewards program. Fortunately, interested individuals can sign up through the free version of PowerUp. GameStop also revealed that the service will be available as of November 13th. The company also said that it would allow members of the reward program to purchase a subscription for other people.
“This unexpected move from GameStop may represent a way for the company to make money from an overstock of second-hand games,” stated Mashable.
The used game rental service has been viewed as one of the company’s strategies aimed at responding to declining profits. GameStop has been having a tough time trying to maintain its brick and mortar business and this has largely to do with the growing popularity of digital sales. The gaming-related company announced that its Q2 profits went down by 3.4 percent and its shares also took a dive following the announcement of its latest quarterly report.
GameStop is now seeking new solutions aimed at attracting customers while also helping it to retain its already existing market through attractive new deals. The rental subscription is also expected to help the company to make good use of its pre-owned inventory.
GameStop stock closed the latest trading session on Monday at $18.77 after tanking by 2.95 compared to the value of the stock during the previous close.