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The Trouble with Modchips: An Opinion Piece

Posted Jul 31, 2006 at 2:52PM EST by QJ Staff

Listed in: Xbox 360 Tags: Andre Vrignaud, Bill Gates, Ozymandias, piracy, xbox 360 titles, Xbox Live Arcade

Andre Vrignaud, otherwise known as Ozymandias on the Xbox Live circuit, recently wrote an essay on his blog in response to a reader's question on mods and console modding. Specifically, the reader asked Andre his opinon on mods, and whether they had a positive or negative effect on the Xbox. While the piece is against modding in general, which might be disagreeable to many QJ readers, his article does serve as food for thought, especially since Vrignaud also helps manage strategies for marketing the Xbox and Windows gaming platforms and thus have a point of view most modders and readers do not get to see.

For instance, one thing most of us don't really get to understand is the reasoning behind the high cost of games. He mentions that it is due to the way the gaming industry is situated, business-wise. Consoles are sold for less than the price of their manufacturing costs, and it is the sale of the additional products, whether they be games, additional hardware, or services like Xbox Live, that make up for this and keep the gaming industry afloat. With piracy, it becomes more difficult to recoup their losses from manufacturing and make an actual profit for further development.

The only other alternative would be the opposite, selling the games for cheap and the consoles at a price that makes up for manufacturing and allows for profit. This leads to the prices of consoles being around the price of PCs, and comparatively speaking, for the same price, a console would be able to do a lot less than a PC can. That doesn't make for good business.

On the whole, Vrignaud's response was against modding for some very valid reasons, and while we do post articles on mods and modding, Ozy's blog gives us a lot to think about. He has an insider look on these things, and at the same time, he also mentions that even Bill Gates is intrigued by the possibilities of mods and homebrewed games, as shown by the ton of mods available for PSPs out there.

The problem definitely lies in finding a way to reconcile both points, in allowing for mods to showcase homebrewed talent while protecting the intellectual property rights and investments of those who made the games we love. The opportunity now lies in seeking out that middle path so that modding can become an avenue for creativity and technical skill without killing the industry it wants to be a part of.

Via Ozymandias

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I used to be a Mod junkie, but quickly learned that having access to whatever title I wanted came with a price. I didnt care/respect for my games as much do to not shelling out hard earned cash for them. I found myself jumping around on title's without completing them.

I'm sure my issues are not the same as everyone and I do not hate on people that Mod but just realize that "It's not for me". I'm a much content gamer now than i was.

# The industry will bleed you dry! — Guest 2006-08-01 15:41

Next gen games are too expensive, period. I hear americans complain about the high price of games when really they have it lucky. New 360 titles cost £50 in the uk, thats around $89, a bit more than what you pay.

My local independant pc retailer started stocking 360 stuff. He told me that he pays £30 for games that retail for £50, a whole 40% profit. So if he gets the games that cheap, imagine what larger retailer must get em for considering they amount they would order. When you think of it, if retailers are getting 40% profit per game, how much are the developers/publishers getting? Surely they wont let retailers get the biggest share?

The bottom line is, we pay more cuz the fat cat executives want more and the more willing we are to pay more, the more we will end up paying.

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