In a letter sent to all Netflix subscribers this morning Reed Hastings, Co-Founder and CEO of Netflix, he describes the change in services. The streaming side of things will remain under the name Netflix. The DVD by mail side of things will be renamed Qwikster and will now include a video game upgrade option. In the email and and the posting on their blog they haven’t said how much the game upgrade will cost only that it would be similar to the Blu-ray upgrade. Since the qwikster website is not up and running yet I couldn’t verify the pricing, but the blu-ray upgrade is only a dollar or two.

Despite all the controversy over the price hikes, I think this will work out well for Netflix and if I were Gamefly I would be worried.  Netflix/Qwikster already has the equipment and facilities setup for sending the games by mail, and their plan includes movies.  Gamefly is going to have to start sending movies or they’ll have to really lower the price of their subscriptions to compete.

If you have a Gamefly account now, would this make you join Qwikster?

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