Since the launch of Xbox, several Internet rental sites have popped up trying to capitalize on the increased interest in videogames. So far, new and established retailers opting for a NetFlix-style approach to renting games online are having mixed results. For some, the initial expenditure required for the games is hard to swallow, while others welcome the chance to reach beyond their neighborhoods. "The customer base in unlimited," said Mark Boyko, CEO of Midwest Games in Martin, N.D., which runs a small rental operation on the Web. "We can tap any part of the U.S." Boyko launched his service four months ago at www.midwest-games.com and acquires about five new customers a week.

He said consumers seem most interested in games for Xbox and PlayStation 2. On the site, customers can rent a game for 30 days for $12.95. After a month, if they want to buy the game, they can e-mail the company, which will then supply a price. Much like online DVD rentailer NetFlix's subscription service, the games are sent to the consumer with a postage-paid return envelope, and the late fee is $1 per day. A $10 fine is levied for damaged games, and the full price of the game is charged to the user's credit card if the game goes missing or is damaged beyond use. The granddaddy of all online rental sites, RedOctane.com, was founded two years ago. A spokesman said the number of customers has jumped in recent months. The site offers games for all consoles for $18.95 a month, and customers can take out two games at a time. Although he would not give specifics, the spokesman said subscribers total in the "several thousands."