Reuters points to Xbox Live as a healthy income source |
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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$10 download from the system. Quite a bundle if you do the rest of the math.
Via Reuters
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Comments [refresh]
50 bucks a year,xbox has been out for 1 and a 1/2 years,so thats like 125$ for you guys congrdu*****inl ations
Typical completely incoherent Sony fanboy post. I'm not 100% sure what any of it meant, but here goes.
First off, Xbox Live has been around for about four and a half years now (not sure what you meant by "xbox", pretty vague, XBL didn't start with the release of the 360), and I have been a proud subscriber since the beginning. It has been more than worth it. Not sure what you meant by "you guys", but if that comment was meant to throw the accumulated price of XBL into Xbox fans' faces, well, it didn't go so well.
And second, you fail at simple math. How the hell did you come up with $125? $50 per year for one and a half years would be $75...
I have had countless hours of fun on XBL across games like Counter-Strike, Halo 2, Wolfenstein, Gears (co-op, don't care for the multiplayer), and so many more, as I'm sure many others have as well. You're not going to convince anyone it isn't or wasn't worth it, so just don't bother.
Congratulations has no d in it BTW
Anyway, glad to see the article title was changed from "cash cow" to "income source", thank you QJ.
not as healthy as it used to be
relax man nobody is not going to get xbox live just cause some people talk negative about it people have been knocking xbox live from the begginning and today it has over six million accounts and is still growing.