younggun

@Warlock234

I sincerely doubt that. Qwister is going to end up running into the same problems that GameFly has. The only way they won't is if they completely stock all or the majority of their distribution centers with tons of titles of the most popular games. That is just not going to happen because games cost more then DVD's and to do so would put a hugh deficit to their earnings for the period, which would be even more detrimental, especially with over a 50% decrease there stock has already taken over the past year.

Bottom line....I'm glad I dumped their stock when they were at near their peak.

@swooded

I agree. I don't see Qwikster (aka Netflix) having much of an impact at first, especially since the intital outlay of capital to purchase enough games to build up their library would be extremely detrimental to their profit margins for the first year. Whereas, GameFly already has a built up library that they have contributed over the past several years of business.

Additionally, one thing that no one (or at least none of the comments I've read) has mentioned is that there is no way I can imagine that Qwikster will purchase the amount of games that is necessary to be as robust with their turn around times as they are with there DVD business. In order for them to be faster, they will have to purchase a hugh amount of all titles to fill all their distribution centers and that is not going to happen. They will pretty much start out with games at a few key distribution centers accross the nation and then you will find that they will have the same issues that GameFly has.