Reuters points to Xbox Live as a healthy income source
Reuters reports that game companies are cashing in better and bigger numbers, thanks in large part to Microsoft‘s Xbox Live network which allows developers to peddle game increments in online stores and make quick bucks to captive audiences.
In particular, the Reuters report pointed to downloadable content as the main factor that makes gaming more expensive than ever for the average Xbox Live user.
The article explains that in addition to the US$50 annual fee that subscribers shell out, downloadable maps and other add-ons are often tagged with prices equivalent to US$10 and higher.
Ubisoft Marketing VP Tony Key says, “The (downloadable maps) are very profitable for us. If you’re a ‘Rainbow‘ guy and you don’t have the maps, then you can’t play a match.” With Xbox Live being Microsoft’s secret weapon against rival consoles, that says a lot. Reuters estimates some three million users are on the system and are purchasing this type of material regularly. “I doubt there will ever be a Clancy game without the Xbox Live component any more. It’s now a key part of the game’s DNA,” Key affirms.
Compared to games, maps and other upgrades are far easier to make as developers themselves admit that it only takes a tenth of the staff that it took to develop a game to create a new map. That explains why developers and publishers still garner stellar profits even if it took some $25 million to build a title from scratch.
Microsoft has been reported to enforce a hefty 30% royalty charge from materials that are sold in the Live MarketPlace. That translates into US$3 for every US$10 download from the system. Quite a bundle if you do the rest of the math.
Via Reuters
Reuters reports that game companies are cashing in better and bigger numbers, thanks in large part to Microsoft‘s Xbox Live network which allows developers to peddle game increments in online stores and make quick bucks to captive audiences.
In particular, the Reuters report pointed to downloadable content as the main factor that makes gaming more expensive than ever for the average Xbox Live user.
The article explains that in addition to the US$50 annual fee that subscribers shell out, downloadable maps and other add-ons are often tagged with prices equivalent to US$10 and higher.
Ubisoft Marketing VP Tony Key says, “The (downloadable maps) are very profitable for us. If you’re a ‘Rainbow‘ guy and you don’t have the maps, then you can’t play a match.” With Xbox Live being Microsoft’s secret weapon against rival consoles, that says a lot. Reuters estimates some three million users are on the system and are purchasing this type of material regularly. “I doubt there will ever be a Clancy game without the Xbox Live component any more. It’s now a key part of the game’s DNA,” Key affirms.
Compared to games, maps and other upgrades are far easier to make as developers themselves admit that it only takes a tenth of the staff that it took to develop a game to create a new map. That explains why developers and publishers still garner stellar profits even if it took some $25 million to build a title from scratch.
Microsoft has been reported to enforce a hefty 30% royalty charge from materials that are sold in the Live MarketPlace. That translates into US$3 for every US$10 download from the system. Quite a bundle if you do the rest of the math.
Via Reuters