The service is not available yet, but is expected to launch later this month. If you want to find the closest Kiosk to you and possible video game selection check this out.
According to XBox 360 digest games will be available at $2 per night. Now I'm not sure how this is going to go over with the gaming community, since we all know that players are not necessarily pulling all nighters to beat older titles. Still if you look at it, if someone rents a title on Monday, plays all week, and returns it on Friday, you've spent $10 on a game that you would have spent $50. It's a really long trial at the cost of most down loadable content today.
This could be a great market for getting players to jump into genres that they haven't ever played before, or try out some games there not sure would fit in their collection. Want to try the latest game but don't want to shell out the cash in the first week, try it for $2 a night!
The biggest crutch will be on accessibility. If players have to wait a couple of weeks to get the latest title, this is not going to go over well. Of course with networks such as PSN, XBLA, Steam and OnLive services, on demand game access is slowly becoming the way of the future, and if Redbox wants to compete, they better have readily available what everyone else has. Keep an eye out on your local Redbox and let us know what you think of the new gaming business model.