ouch gamefly to start sending games DISC ONLY no longer any cardboard inserts

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As of this week, you may see some of your games arrive in a newly redesigned mailer that does not include a cardboard insert. We have changed our mailer for all disc-based games.

However, we noticed that you have rented handheld games (PSP, DS, or GBA) from us in the past. Handheld games will continue to be mailed in the usual mailer with the cardboard insert. Please return these handheld games with the cardboard in the same mailers they arrived in.

If you have any questions or comments, please contact our Customer Service department at [email protected].

GameFly Support
E-mail: [email protected]
Online Help: www.gamefly.com/help


I have yet to see one BUT im going to guess that the amount of broken games is going to increase big time.. you would think it be the other way around. Carts no cardboard, Disc with cardboard
 
So they want to decrease shipping costs, but they don't realize that the costs to replace/maintain the games is going to skyrocket? I bet they lose a lot of customers over this move...
 
[quote name='dallow']Just like Netflix, what's the prob?[/QUOTE]


ummmm

10 netflix movies get broken = what 150 bucks 15 each (not sure what they pay for wholesale movies)


10 xbox 360 games get broken = 600 bucks. 60 each



right there is the problem... meaning expect prices to jump
 
Just like Netflix, what's the prob?
Click to expand...

Yeah, I guess I didn't think about that. Good point.

10 netflix movies get broken = what 150 bucks 15 each (not sure what they pay for wholesale movies)

10 xbox 360 games get broken = 600 bucks. 60 each

right there is the problem... meaning expect prices to jump
Click to expand...

Another good point. I'll be curious to see how this plays out. Either they raise the prices due to too many replacement discs and lose customers, or lower prices to prevent customers from quitting.
 
My thought is that Gamefly must have weighed the savings vs damaged games already. They would not have made this decision just because Bob in accounting said "Hey, lets save some cash and ditch the cardboard!"
 
i have never received a broken disc in the 3+ years i've been using netflix and neither have any of the friends i have who use netflix. i don't think it will be an issue.
 
[quote name='slidecage']ummmm

10 netflix movies get broken = what 150 bucks 15 each (not sure what they pay for wholesale movies)


10 xbox 360 games get broken = 600 bucks. 60 each



right there is the problem... meaning expect prices to jump[/QUOTE]

I had no idea these companies paid full retail pop for these :roll:

Most likely a $60 MSRP game costs GameFly $30 or so to buy. Rent it out a few times and they already made there money back. By the time a game 'breaks', they may have already gotten enough profit out of it, or its already really cheap used (like they would sell it to you for $10 for example). Don't you ever wonder why they drop prices on used games fast and are usually pretty damn good prices? Most games only go through circulation for a few trips and then is resold as 'used' (still at a profit I'm sure) and a new copy may be repurchased, free of scratches/defects.
 
[quote name='GizmoGC']I had no idea these companies paid full retail pop for these :roll:

Most likely a $60 MSRP game costs GameFly $30 or so to buy. Rent it out a few times and they already made there money back. By the time a game 'breaks', they may have already gotten enough profit out of it, or its already really cheap used (like they would sell it to you for $10 for example). Don't you ever wonder why they drop prices on used games fast and are usually pretty damn good prices? Most games only go through circulation for a few trips and then is resold as 'used' (still at a profit I'm sure) and a new copy may be repurchased, free of scratches/defects.[/quote]

I am 99% for positive the mark-up on games isnt even close to $30. Im pretty sure even at whole stores pay no more than $5 under $60. I could be wrong though.
 
I've already received 3 games like this without the cardboard. In 2 years of online rental. I've never received a broken game Thats with different companies also (gamerang, GF, and GnF). As far as renting movies I've only had about 5 or so broken ones in 3 years or so of online renting.
 
Gamefly would also have good relation with publisher it would probably cost them little to get replacement.
 
[quote name='magiic']I am 99% for positive the mark-up on games isnt even close to $30. Im pretty sure even at whole stores pay no more than $5 under $60. I could be wrong though.[/QUOTE]


Bingo. I know when I worked for Blockbuster, new games had the lowest profit margin in the entire company. Figure companies buy the games for $48-53 per for $60 titles.
 
This doesnt make much sense at all to me. Wouldnt they want to protect their investments? How much could these cardboard inserts really be costing them?
 
[quote name='Krymner']My thought is that Gamefly must have weighed the savings vs damaged games already. They would not have made this decision just because Bob in accounting said "Hey, lets save some cash and ditch the cardboard!"[/quote]

you never know these days :roll:
 
Am I the only one who has noticed that since they changed to the east coast facility for my state of Massachusetts, I have 4 games on my list and all at 'low' or 'very low' for over a week. I am going to cancel my membership since this it's bull. And this week alone I recieved two envelopes from them with just empty white envelopes. Sounds liek who ever is working at the east coast facility has no idea what they are doing.
 
i'm guessing it saves them on shipping costs to send without the cardboard. this savings on shipping likely outweighs their projected number of broken disks.

in addition, if a disk breaks they can write off that expense and the replacement expense. Most companies will replace a broken disk for $5 - $10 rather than full retail.

even saving pennies on shipping will greatly outweigh the added disk replacement expense.

as for why cart games require cardboard, probably due to the irregularity of the package. USPS charges more for something that isn't flat. The cardboard makes it flat.
 
im sort of shocked they took the cardboard out. Isnt all the games a flat shipping rate since they use a BULK stamp. I didnt know you could have two different prices for shipping if your using just a bulk stamp

last time i checked BULK RATE was based on number of items shipped and not really weight.

I wonder if they consider psp games cart or disk cause if they are Shipping with no protection ALOT OF their psp games are going to get smashed and broke
 
I've never seen broken disc from Netflix.

And the guys above are right Giz, cost is only about 5 bucks less than retail, which is why they're not very profitable to stores.
 
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