The continuing customer 
backlash at Netflix is taking on staggering proportions. The company (whose stock, by the way, is down another 7 percent in trading this morning) has lost a quarter of its value in the past month.
Things don’t look to be slowing down, either – and competitors are viewing that as a golden opportunity to swoop in and steal some of those disgruntled customers.
For years, customers 
and analysts have pestered Netflix to add video games to its rental operation. In a few weeks, they’ll finally get their wish.
Netflix has announced plans to add titles for the Xbox 360, PlayStation 3 and Wii to its catalog in the coming weeks. The new options will come as part of the company’s plan to split off its DVD-by-mail service into a separate brand and website called Qwikster.
Gamasutra columnist Chris Morris 
looks at how Netflix’s recent decision to add video games to its rent-by-mail service could pose a threat to competitor GameFly and shake up the video game rental market significantly.
Maybe it’s a good thing that GameFly has been unable to get its act together and launch that IPO it filed for last February – because if it had, its stock would surely be taking a prison yard beating today.
Netflix has made some baffling moves in the last couple of months, and Sunday’s announcement that it would be spinning its DVD-by-mail service into a separate division certainly qualifies as one of them. But the addition of video games to its offerings could be just what the business needs to prop that service up for a few more years.
Netflix plans to 
separate its streaming and rental-by-mail businesses into separate divisions in the coming weeks.
The company hopes the new division, dubbed ”Qwikster,” will help it stabilize its subscriber base and revive its share prices. To help revive consumer interest, the company plans to add video games to its rental options as well.
Also in the note, CEO and co-founder Reed Hastings acknowledged the overwhelming negative feedback to recent price changes at the company, saying ”I messed up. I owe everyone an explanation.”
Chris Morris: Journalist 