Why did video rental stores stopping renting consoles?

[famousringo]

madskillz said:

famousringo said:
Either the risk was too high, or the demand was too low. Maybe both.

Consider the continual growth of the videogame industry. More and more households already have a gaming system. Increased ownership is probably driving down demand for rental.

Here's the thing - with the economic downturn, folks are selling their consoles. Being able to rent them would actually be good for folks who just want to play games when they have company/party or just want to do something different.

As far as risk, when I rented a PS2, I had to have a $200 deposit, in cash AND an active credit card on file too. They were well covered.

I wanted to rent a PS3 and a Wii when they first came out to see if I would like the systems. I wish I could have rented them. I have purchased several games I rented recently. Without renting, it's unlikely I would have taken the plunge.

 

 

$200 deposit + rental fee is roughly the price of a new console (except the PS3, of course). I know you get the $200 back, but all these requirements raise the barriers for rental, and make purchase more attractive by comparison. Furthermore, you can get money back on a console by selling it.

The only difference between buying a $250 Wii which you can sell for $200 and renting a Wii for $50 plus $200 deposit is that rental has the added barrier of requiring a credit card. The exit barrier is lower with rental, but people are usually more interested concerned with getting in than getting out.