Right now, there are around 7000 stores worldwide, but many of those aren't too profitable, so they're being shut down. 280-300 stores will be gone by the end of this year, with the rest to come throughout 2010.

Sad? Course you're not. The death of physical stores renting physical copies of games (and movies!) will be a slow, painful and protracted one, and this just part of the process.

Blockbuster to shutter up to 960 stores [Cnet]

The kiosks will cover the major consoles (PS3, PS2, Wii and 360) and the $2 per night doesn't blow the doors off Blockbuster's $9 for 5. But it does offer a different sales pitch - mainly, an impulse grab while you're out doing something else.

Unfortunately, selection seems to be an issue with just 13 360 titles offered. There are also no online reservations (naturally) so this is truly a grab-and-go model. But for those in RedBox's range, who use rentals as part of their playing habits and buying strategy, this extra convenience could prove useful.

RedBox Launches $2 Video Game Rentals [Zatz Not Funny, via Gizmodo]

The Los Angeles-based company says that the United States Postal Service is responsible for breaking between one and two percent of 590,000 video games shipped each yearmonth with their automated sorting machines. That doesn't sound like a lot of games, but Ars Technica's done the math – putting the cost to GameFly for broken games at $295,000 a month.

Besides breakage, GameFly is sore about games being stolen out of the mail; though it does give the Office of Inspector General and the Postal Inspection Service credit for arresting 19 USPS employees in connection with the thefts. The company is also annoyed that working with USPS to find a solution has only cost GameFly more money as they experimented with heavier and bigger mailer to try and protect their product.

The final insult, though, is the claim that Netflix and Blockbuster have it better. According to GameFly, USPS manually plucks Netflix and Blockbuster DVD mailers from the sorting line en route to the machine to protect them from breakage. GameFly's complaint alleges that they've asked for comparable treatment for their game mailers, but that postal service hasn't done it. With Blockbuster renting out video games by mail, says the complaint, "GameFly now faces direct competition from a rival that is larger and longer established – and which, because of the preferential treatment given by the Postal Service, enjoys a substantial cost advantage in the distribution of its DVDs to consumers."

GameFly told Kotaku today that because this is a legal matter, they have no official comment at this time. Their complaint says in the Relief Requested section that GameFly wants the Commission to immediately hold hearings on their grievances and offer them "reasonable and nondiscriminatory rates and terms of service." Like now, before more games get broken and Blockbuster noms on the market.

Check out the full complaint here.

Gamefly: USPS handles DVD rentals with kid gloves, ignores us [Ars Technica via Voodoo Extreme]

Yes, Blockbuster, the 24-year-old chain that rents "more video games than any other company, store-based or online, in the nation," is in rather dire financial straits. It told the SEC that it may not be able to continue, given that it may not be able to meet the conditions of a $250 million loan that would help keep it afloat.

While things look grim for Blockbuster, there's a chance it could soldier on, something we'll know for sure mid-May. But hopes for the chain's video game rental by mail service to hit later this year sound iffy.

Blockbuster gets going concern notice: SEC filing [Reuters]

Blockbuster's Total Access rental program might soon have a distinct advantage over rival rent-at-home company Netflix with the introduction of video game rentals to the service. Having focused solely on movie DVD rentals since its inception, Total Access will soon begin offering select customers the option of having video games delivered directly to their door as well, as part of a pilot program that will lead directly to a nationwide launch of the service in the second half of this year.

"We already rent more video games than any other company, store-based or online, in the nation, so we know our core customer loves games as well as movies," said Bob Barr, Vice President and General Manager of blockbuster.com. "With this pilot program, we're laying the groundwork for offering BLOCKBUSTER Total Access customers easy online access to the movies and games they want, through an integrated subscription offering."

The move could give Blockbuster a leg up on rival Netflix, which currently only offers movies, as well as stirring up competition for game rental service GameFly.

This of course all depends on how well Blockbuster implements the service. I've found that Netflix generally has wider selection and better availability, and as many a Blockbuster game renter can attest to, the company tends to be rather selective when it comes to which games wind up on store shelves.

Still, some video games is better than none at all, and the added ability to trade in your online rentals for half-priced game rentals at your local Blockbuster is certainly a plus. Time will tell if the move can help Blockbuster persevere in the face of an increasingly hostile business environment.

No more, as the PlayStation.blog writes today that brick and mortar Blockbuster stores will be carrying PSN cards as of, well, before today. And they'll be in $20 and $50 denominations, not that crazy "yen" value you see in the pic above.

PSN Cards now available at Blockbuster [PlayStation.blog]

Mayor Tom Leppert, 53, made sweet sweet love to his main axe with "Hit Me With Your Best Shot," craning the guitar neck up and grimacing dramatically. Sure he handed it off to his 11-year-old "personal Guitar Hero coach" Aaron Blackmon mid-song. But Leppert got it back to drop to his knees for the big finish.

"I might not have hit the keys, but boy I sure got the style points," Leppert said. Aaron says the mayor is "good for his level," (ouch) but that he shouldn't play Guitar Hero as a career.

"The heck with this mayor stuff," Leppert replied.

Leppert was matched against Blockbuster CEO Jim Keyes, whom Leppert accused of practicing for "hours and hours" to get "School's Out" right. When Keyes started his licks, Leppert stuffed $5 bills in his guitar strap and half-heartedly interfered with the guitar's signal back to the console.

The fund-raiser hopes to raise $625,000 for the mayor's "Igniting Opportunity for the Children of Dallas Campaign." This is part of leadership, too — having fun at an event that's supposed to be fun. Good on Mayor Leppert.

Dallas Mayor Leppert Jams at Blockbuster Charity Event [Dallas Morning News, via GamePolitics]

Unfortunately I'm lying.

No, the manager at the Blockbuster Video...someone I had known for years...wouldn't let me return the game. All I could do was trade-in the game for store credit - $35 - which I then put towards the Xbox 360 version of Iron Man. All in all, I wound up spending about $90 for a copy of Sega's Iron Man, but with the game I received a bit of knowledge that I will carry with me from here on out. Don't buy games from Blockbuster.

I understand that it isn't their fault my PS3 decided to crap out on me, and I understand they have store policies to adhere to, but unfortunately for many Blockbuster employees that is the limit of their understanding. Without a basic knowledge of how the game systems work, they simply don't understand this sort of situation. Hell, when I first brought the game back the elderly day shift manager looked absolutely terrified, running to the back room to get the store manager to handle the return.

I know for certain that had I done this at my local GameStop store, the employees there would have swapped out the version without blinking an eye, especially considering I was back within the hour. Of course I have built a rapport with them over the years, but as I said, I have known the Blockbuster Manager for years (she knows my mother) and she still couldn't do anything to help.

Incidentally, Iron Man? Not worth $90.

Oh, it's super lame today. But in a few more months, that frame will make a sweet, sweet regift.

Thanks to Gizmodo's Jason Chen for sending this in!

This is a big event for Blockbuster. The new release wall is sacred ground for us...We think that's going to attract a lot of people to our game offerings.

Blockbuster putting videogames in "new releases" starting with "Grand Theft Auto IV" [Variety][image]

Now keep in mind that this could all be corporate rhetoric meant to make the managers feel better about working for a company that is for all intents and purposes circling the toilet. I've called some of my GameStop contacts who hadn't heard anything about preorders being canceled, though for all I know the alleged exclusives could be for games that no one is really preordering anyway. Remember one of BB's more famous exclusive games, Acclaim's Freestyle Street Soccer, one of the only titles that a used game store will actually pay you money to take off their shelves.

What I cannot dispute is Blockbuster's increased focus on gaming. My local store, which isn't one of the ones with the game store built into it, is now stocking stacks of Rock Band and Guitar Hero, selling PlayStation 3 systems, and aggressively pursuing preorders for titles like Grand Theft Auto 4 and Mario Kart Wii.

Not to mention the fact that exclusive deals have long been the company's bread and butter, from exclusive sales contracts allowing them to buy massive amounts of movies for prices the mom and pop stores could only dream about, to the more recent securing exclusive rental rights to hit films. Securing presale rights to video game titles isn't so far-fetched.

Well just have to see how things develop - if they develop - and what effect, if any, it has on video game retail. I don't see this doing much more than putting a few more pennies in Blockbuster's coffers and, depending on the titles, signaling the occasional return of launch day lines outside of GameStop stores.

The video rental company noticed that when consumer were given the choice between the two formats, they often went for Blu-ray. However, the choice was only given at 250 of the stores, and critics of Blockbuster's move believe that the rise in Blu-ray rentals could be attributed to films like Casino Royale and Spider Man exclusively being released on that specific format earlier this year.

"I think trying to make a format decision using such a short time period is really not measuring what the consumer is saying," said Ken Graffeo, co-president of the North American HD DVD Promotional Group,

Time will tell if Blockbuster's decision will prove to be the right one. Kim Phu

Blockbuster to Focus on Blu-ray [BBC News]

Just got a call from my girlfriend who works for Blockbuster Video (yay free movies!), who wanted to let me know that they've received a big ol' box of PS3 and Wii titles in their regular Thursday shipment. Well okay, she originally called to tell me that they got in Spongebob Squarepants for the Wii, but I made her check the other boxes. She really does mean well.

When the 360 was released last year it took most normal, non-Game Rush stores weeks to receive games for rent, but it looks like this time around Blockbuster is on point, with a wide variety of titles ready for rent as early as tomorrow morning.

At my girlfriend's store I'd aim for Saturday, since she seems to share my particular work ethic. Michael Fahey

When an unlucky TeamXbox forum member pre-ordered two Perfect Dark Zero games and Blockbuster was sold out, he wanted to exchange the preorder monies for a hard drive. Instead, he got called an idiot by the Blockbuster management - on his reciept (see image). Written evidence of customer disrespect, the TeamXbox forum user is taking matters up with Blockbuster's corporate offices. Wasn't Blockbuster's old slogan "Wow, what a difference, Blockbuster video?" Maybe this is a new kind of customer service?

Blockbuster Video Calls Gamer 'Idiot' [It's Got to Be Fluff]