Netflix: Without Qwikster, No Game Rentals

When Netflix backtracked on its plans to spin off DVD rentals into a separate company called Qwikster, the company didn’t say whether it would still add video game rentals to its mail-order service, as announced along with the spin-off.

Now, it’s official: Netflix will not rent video games, or at least it has “no plans” to do so, CEO Reed Hastings said in an earnings call. He did not elaborate.

Netflix had planned to rent video games as an optional upgrade for movie renters. The news excited me because both GameFly and Blockbuster have trouble sending out the newest games in a timely manner. I was hoping that Netflix, with its huge DVD operation, would be able to do a better job with new releases, or at least pressure its competitors to do so.

But without a spin-off, it’s no surprise that Netflix doesn’t want to make the investment. That money is better spent on acquiring more streaming content–the inevitable future of media consumption–instead of trying to rent more discs.

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