GameStop Thinks Rental Subscriptions Will Pay Off

GameStop (NYSE: GME) recently introduced a subscription-based video game rental service called Power Pass. The service lets gamers borrow as many pre-owned physical games as they want from its stores, one at a time, for six months for a $60 fee. As an added bonus, customers can keep one free game after the subscription period ends. Sign-ups will start in early November.

PowerPass sounds like a good deal for gamers, who regularly pay $60 for a single game. It could also boost traffic at GameStop's stores while providing the retailer with a new stream of revenue. But will it move the needle for GameStop, which shed more than 25% of its market value over the past year? Or will it fail to overtake similar digital subscription offerings from leading video game publishers like Electronic Arts (NASDAQ: EA) and Sony (NYSE: SNE)?

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Source: Fool.com