Redbox Raising Game Rental Prices

Do you rent video games from kiosk-based rental company Redbox? If so, you'll soon be paying more. The company on Monday announced a price hike for games. Effective January 6, the nightly rental rate will be $3, up from the current price of $2.

Redbox is also hiking prices for DVDs and Blu-rays, which will jump to $1.50 and $2, respectively. This is the first time Redbox has raised its prices for games and Blu-rays.

"The pricing adjustments announced today will allow Redbox to continue to offer consumers high quality movies and games while making investments to enhance the customer experience," Redbox parent company Outerwall CEO J. Scott Di Valerio said in a statement.

Specific to video games, Redbox says the price hike was needed "so we can stock more top titles and roll out games for new consoles to more cities next year."

The new price points for movie and game rentals were decided upon after "several months of market testing," the company added. While rental volume is expected to take a hit in the near-term as a result of the price changes, Outerwall said the increases, along with Redbox's "network optimization initiatives," should help offset future declines in the physical rental market.

For more on how Redbox's video game rental service impacts the game industry, check out GameSpot's interview with the man in charge of the company's gaming unit.