MONEY CLIPPED

With Halo 3 expected to pull in $200 million in 24 hours (it launched at midnight in case you didn’t know), let’s talk about video game value. The video game industry made $12.5 billion in 2006 (are you invested?). $12.5 billion! There has to be a reason, don’t you think? Vide games main competition is often seen as DVD. Let’s look at how they stack up in entertainment value:

DVD

• Average cost new = $15-20
• Average number of viewing hours = 2-4 (including extra features)
• Replay value = high for kid’s movies, low for everything else

Video Game

• Average cost new = $30-60
• Average number of playing hours = 20-300
• Replay value = usually high

You buy a new DVD for $10, it’s 90 minutes long, you watch it 6 times so you got 9 hours of entertainment for $10.

You buy a video game for $40, it takes 30 hours to complete (if you play just the main storyline), you play it through twice so you got 60 hours of entertainment. If you can mod the game, you’ll probably play it even more.

Seems pretty obvious to me which is the better value (ignoring factors like console/PC cost vs. home theater cost). Check out a site like Cheap Ass Gamer and the video game value can get even better.

So if your kid or spouse nags you for Halo 3, it’s a far better value than buying them 3 movies for the same cost. Of course, the down side to the video game value is that your kid or spouse aren’t gonna get any thinner sitting in front of a screen for 300 hours. I’m not saying nothing, I’m just saying…

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Before you go out drinking with your friends this weekend, here’s something to think about.

1. A half-barrel of beer roughly costs $50-130, depending on how expensive your taste is.
2. You can buy a keg refrigerator for $400-700.
3. So let’s say that for $700 you can buy a keg fridge and a half-barrel of the beer of your choice.
4. That means for $700 you can get between 100 and 165 12oz. glasses of beer.

Next let’s assume that the average cost of a 12oz. glass of beer at a bar is $3.50. That means for $700 you could buy 200 beers. At first glance, going out seems like the better deal. But keep this in mind- about $600 of the keg cost is a one-time cost. Once the fixed cost is removed you get:

Bar- $700 for 200 beers
Home Keg- $700 for 700 beers
(conservatively assuming $100 a keg, 100 glasses per keg)

Now these are just rough estimates but it looks like staying in is the smarter economic choice. You should also consider that the price of the bar beer does not include the related expenses of going out:

• gas/parking/valet/cab/train
• cover charges/bribes
• tipping under the influence
• other misc. (food, smokes, lap dances, bail, etc)

There are some other advantages to the home bar:

• you control the music
• you set the smoking rules
• you won’t get a DUI/DWI
• you won’t run into anyone you want to avoid
• you won’t have to sneak out in the morning
• your friends will be jealous of your bar

So maybe instead of going bar hopping this weekend you should go bar shopping instead.

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It’s understood that renting DVD’s from video stores is on it’s way out. DVD rental by mail for many people is far more convenient and exponentially less expensive than renting from a brick-and-mortar. As quick as video rental stores are shutting down, you may not have any choice but to rent online. While a lot of people are only aware of the Big Two- Netflix and Blockbuster, there are other DVD-rental-by-mail services that might be a better bet for you.

If renting movies is a non-negotiable item in your budget then you need to check out DVD Rental Review. This easy-to-use site reviews the online DVD rental services available for the U.S., Canada, UK, and Australia. Simple tables show the various services’:

• number of rental titles
• costs per month
• whether there’s a free trial period
• an average user rating out of 10 stars.

There’s also a direct link to each rental service so you can check out the details for yourself. If you’re just not sure how the whole online DVD rental works, see their FAQ for a breakdown of what rental by mail is and how it all works.

Now at first glance, based on price and number of DVDs you can have out, one company may stand out from the others but does that make them the best value? It’s not a value if the service is unreliable or you get caught up in an iffy contract. For each service there are actual user reviews. Most services have a dozen+ reviews and , of course, you can add your own review of a service. You can’t help but notice that many of the reviews are quite negative. However, as DVD Rental Review points out on their FAQ, as a general rule, people are more likely to complain than compliment. Still, I think the complaints are useful in evaluating the services.

There is something you need to do before you go start reading the reviews and that is to really evaluate how many movies you’ll realistically rent in a month. A true movie junkie may easily watch 10 DVDs a month. But when the cheapest U.S. plan is $8.99 a month (that’s $107.88 a year), you’ll be throwing your money away if you’re not renting what your service plan allows each month. Renting DVDs by mail can be a spectacular deal if you’re taking full advantage of a service but if you’re not, it’s a waste of money. If you’re just not sure about what your rental habits will be, don’t be afraid to take advantage of one of the services that offers a free trial period. That’s what they’re there for!

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