Netflix had previously announced plans to compete with GameFly (parent company of Shacknews), offering video game rentals by mail via its Qwikster spin-off service. Customers were vocally opposed to the division of Netflix's mail and streaming services, and it wasn't long until Netflix canned its plans to create the Qwikster spin-off.
The company confirmed yesterday during an earnings call that Netflix is no longer interested in adding video game rentals to its service.
VentureBeat reports that Netflix is also uninterested in offering a streaming or cloud-based video game distribution service, a la OnLive and Gaikai. (GameFly currently offers an "Unlimited PC Play" service for paid members.) The company did not discuss the sudden change of heart.
Should Netflix's plans to enter the games rental market come to fruition, the company would have offered PS3, Xbox 360, and Wii games.