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Analyst: platforms will offer more exclusive DLC

Posted Oct 10, 2008 at 4:16AM EST by QJ Staff

Listed in: PS3, Wii, Xbox 360 Tags: Colin Sebastian, Downloadable Content, Lazard Capital, Lazard Capital Markets, NBA

Have you guys noticed that platforms seem to have a new strategy of grabbing exclusive downloadable content for games?

Well, the strategy worked for the Xbox 360 when they bagged exclusive DLC for Grand Theft Auto IV. One analyst, Colin Sebastian of Lazard Capital Markets, says that this is just the beginning. Eventually, exclusive DLC might become the latest battlefield among the consoles.

If you remember, Microsoft reportedly paid US$ 50 million for the exclusive downloadable content for Grand Theft Auto IV, which no doubt boosted Xbox 360 sales. They managed to grab the same deal for Fallout 3 and Tomb Raider: Underworld. So far, the only game Sony's been known to employ this tactic to is Mirror's Edge.

Sebastian says that this strategy to provide exclusive DLC to sell platforms is still "unproven," but adds that the release of GTA IV's DLC will be the strategy's "key test." He remarks that for the strategy to work, "the content needs to be high quality and add something to the overall game experience."

He predicts that Nintendo will get in on the act soon, and that the market for exclusive DLC will get more and more competitive:

We're still in the early stages of growth, but over time, there is going to be more competition for online content as Sony and Nintendo enhance the services available to their users, and close the gap with Microsoft.

It's more cost effective for the platform manufacturers to lock up exclusive online content than entire games.

Well sure, why pay to develop entire games when you can just offer extras for less?

Via CVG

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don't use them. GTA has always been Playstation. GTA 4 DLC isn't here yet, and will not be exclusive to xbox. Smoke and Mirrors are all you brainwashed people use to spark controversy.

Give me one reason why GTA 4 DLC would be exclusive to xbox............

Give me five GOOD reasons why Xbox 360 is "good".

Give me one good reason why Halo 3 Recon is worth buying?

# Don't count on it — jrsmaster411 2008-10-10 07:14

Nintendo would never pay third parties for exclusive dlc, They won't even pay for exclusive third party games why would they do it for dlc. They are gonna stick to their formula of mario, zelda, and metroid.

# .... — Silver-Tiger 2008-10-10 08:35

I totally hate exclusive DLC. Why should someone get less because he prefers another console? We all pay the same price for the same game. At least make the other version cheaper, you money-grabbing b'tches!

# . — lllegal Machine 2008-10-10 10:46

Give me one good reason why you don't shut the f u.ck up

# Please... — Nevers 2008-10-10 11:14

don't feed the animals !!!

# erm... — chessboxer 2008-10-10 12:27

M$ paid something like $50 million for the exclusive DLC for GTA4.

I'm not bothered about it really, that M$ dude at TGS said he had no idea when it's coming out for the 360. It was supposed to have been out in August. I'm happy with my PS3 copy.

I have no idea how much M$ paid for the Fallout 3 or Tomb Raider exclusives though.

Unfortunately I cannot answer the other 2 questions.

# I hate exclusives in general — Master Chef 2008-10-10 12:42

But this is the way it's going to go. 3rd party devs and publishers are more and more reluctant to put games on only one console, if it's a big release there's just too much money to gain, the money from the exclusivity deal would not be worth it. What's the only other option? Exclusive DLC

# Forget exclusives DLC — itsblackmelop 2008-10-10 20:58

why make em? u money hungry baster's, I mean if the dev know there game's is so good shouldn't it do well without exclusives dlc on both platform?

# education strategy — shabghai360 2008-10-11 20:33

When the WWW was first up and running many said cool but who will use it?

There was also talk about it just being another tool for big brother.

The fact is that most of us are now so wired we could not imagine life without it.

DLC is just the first step to the future of games. I agree that the exclusivity is at this moment a joke and a manner in which to earn extra for some, but this process will over a couple of years be so commonplace that they will progress from demos and smaller arcade titles to full games for purchase.

We can argue and comment about the issue of games being so huge but this is in itself not a major drawback. When a disc is released it needs to hold the entire software package. Online content means that we would only need a part of the package to successfully log in and play.

Now this is a double edged sword as the developers can do 1 of 2 things.

1. offer good content for a far and much lower price than now.

2. or they can just cruise the greed machine and stick us with pricing that makes them fatter.

What is an interesting point though is that once a DLC system of distribution is accepted and used it could open the door for some of the smaller and often good game developers to access the user base to sell its games. An advanced form of homebrew could develop to a point that forces bigger companies to readjust their views on pricing.

Adavantages to DLC are

no need for physical production of disks, sleeve notes graphics printing etc.

no need for logistics and to co ordinate delivery of above disks to stores etc. no need for warehousing or storage. No need to offer advertising to resellers and no need to pay a reseller.

All of the above means savings on cost which is paid even before a disk is released. So my argument is that it is only logical that companies will go this direction in the future the only question is will we benefit from these savings or will we be suckered into paying the same present high costs.

# ..... — Silver-Tiger 2008-10-12 00:42

too bad QJ doesn't have the "comment of the Week" anymore. I think you would have deserved it this week.

# Comment of the week — shabghai360 2008-10-12 03:16

Hi Silver-Tiger,

lets just hope that the dev's give us a fair deal in the future.

# What about — Grove Str OG 2008-10-12 18:28

what about those in countries that dont have ibnternet connection to get DLC from, that will be a kick in the face for loyal gamers to a certian franchise.

not everybody have internet at home and will be excluded from getting DLC. what a rip-off wil that be!!!!!

# Internet — shabghai360 2008-10-13 00:52

I live in China and here even the smaller townships are kitted with 8MB connections.

So for those countries without internet where are they? If they can get a PS3 or a 360 then I think your assessment is out of whack.

For those that do not have internet then they are right now going to miss out on the DLC which is being offered.

The future of the games distribution is still the future. ***** I remember when we played Pong and it was black n white, Times change and they change faster all the time.

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