Blockbuster encroached on GameFly’s game rental business with its rental-by-mail trial about a month ago, and now GameFly has responded by deploying its first game rental kiosk. The Daily Toreador reports that GameFly has partnered with Barnes & Noble to set up new G-Box Kiosks at various campus bookstores—the first being at Texas Tech (via Kotaku).

Like movie-rental kiosks, students can browse through, pay for and take home games in minutes. Titles are available across platforms: Wii games cost $1.99, while Xbox 360 and Playstation 3 games cost $2.49; there are no late fees or due dates. That’s in contrast to games at Blockbuster (NYSE: BBI), which can cost about $10 for a five-day rental, in addition to membership fees. John Creed, the GM of the Texas Tech campus bookstore, told the Toreador: “I think it’ll allow students who don’t have the ability to get out to a Blockbuster to rent games.”

GameFly plans to launch G-Box Kiosks on campuses around the country; the news will likely be one more threat that analysts quiz Blockbuster about when it reports earnings in two weeks. Blockbuster released some of its Q4 sales data ahead of schedule, after reports that it was considering bankruptcy sent its stock into a tailspin; the company said the reports were inaccurate, and that it was only seeking advice about restructuring its debt.

Photo Credit: The Daily Toreador

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