GameFly has merged with an Israeli company to offer streaming services. GameFly has merged with an Israeli company to offer streaming services. GameFly has merged with an Israeli company to offer streaming services. (Photo: Kar Tr/Shutterstock)

Video game rental service to offer streaming

Play games on Amazon Fire TV through GameFly.

One company in the video game rental world is finally taking a cue from Netflix and entering the cloud-based streaming business.

GameFly, one of the largest video game rental services in the U.S., announced Tuesday it had merged with Playcast Media Systems, Ltd., an Israel-based cloud gaming platform company, and will offer its customers a streaming service. Game packs start at $6.99, considerably less than the starting point for its mail rental service.

Up until the announcement, gamers had only been able to rent video games through the mail from GameFly and other similar services, much like with Netflix's original mail service model. Netflix has since forayed into on-demand streaming services.

Gamers that want to stream video games through GameFly will need an Amazon Fire TV.Gamers that want to stream video games through GameFly will initially need an Amazon Fire TV. (Photo: Andrew Burton/Getty Images)

“The $25 billion video game industry is undergoing major disruption, and consumers have expressed strong interest in streaming games, much as they do with TV and movies,” said Michael Moritz, chairman of Sequoia Capital and director of GameFly. “GameFly’s introduction of its new streaming video game service should help accelerate the growth of this market considerably.”

The move will essentially pit GameFly against Sony for streaming supremacy. Though at launch it will only be offered through Amazon Fire TV, GameFly plans on making its services available on multiple consoles and media players. This will give it an advantage over Sony's service, which is only available through its Playstation consoles and Sony Bravia TVs.

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Video game rental service to offer streaming
Play games on Amazon Fire TV through GameFly.