Netflix drops plan to rent video games

8:34 AM, Jan 27, 2012   |    comments
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(USA TODAY) -- Netflix has scrapped plans to add video games to its online rental service.

The company revealed details during its fourth-quarter earnings call, during which they also announced regaining most of the customers lost following major changes to its rental options.

Netflix had originally planned to offer video parts as part of a spin-off, DVD-rental website called Qwikster.

But less than a month after unveiling the service, Netflix killed off Qwikster to keep both its DVD and streaming rental services together.

In October, CEO Reed Hastings said video game rentals were still up in the air, but confirmed during Wednesday's earnings call that the company had "no plans" to enter the video game rental space.

Had Netflix gone through with video game rentals, it would have faced stiff competition from several companies, including Gamefly, Blockbuster and Redbox.