Games & Industry News - Blockbuster Facing Financial Troubles
Blockbuster, the world's largest movie-rental company, filed for Chapter 11 bankruptcy due to failing to meet with its competitors like Netflix. The company listed that its assets of $1.02 billion was up against its $1.46 billion in New York's U.S. Bankruptcy Court. The company said it will try to bounce back by working with bondholders to reorganize the company and attain loan of around $125 million in order to finance it's bouncing back operations.
Blockbuster claims that it will retain all of their U.S. Operations such as their chain stores and their newly acquired DVD vending machines, their mail services, and all other parts.
Now what does that have to do with video game news? Basically its a set of the trickle down effect. Most likely Blockbuster will cut back on certain expenses and we the consumers who still drive to the Blockbuster might suffer for it. It could mean that there could be less copies of video game rentals in the near future. Also it could mean a rise in rental prices of games which from I know from personal experience my last game rental of Red Dead Redemption was around nine dollars. Add that with the subtly brought back late fees, we video game renters might be suffering at the cash register a bit more