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THQ CEO Brian Farrell told CVG that games will likely be cheaper in the future, but with more downloadable content. He believes that the initial version of the game will cost between $29 to $39, but more and more features will be downloadable add-ons. He told CVG:
I’m a big believer in monetising under the curve, so we capture that $29 to $39 user no matter what, and a person that wants to spend $100 on the product can do so as well. I think that’s the future of gaming — whether it’s this model or a take on the free-to-play model. It’s where our industry is going.
I’m not sure if this is where the industry is going, but I can see publishers experimenting with it in certain genres. I also see enthusiast gamers getting extremely angry about this practice…and doing nothing about it.
What do you think of this business model? Would you mind getting a stripped down version of a game for less money? Do you care that more features would have to be purchased online? Is this smart business? Or is it Kotickian?
This would drive me to only play MMO titles. About $40 for a chopped up title, presumably, is not something I'm interested in. I take notice of his statement that a consumer can spend $100 if they want to. One of the reasons I quit MW2 is because of the map packs. They are $15 each and pretty much are required now. That's $90 on one title. To me that is too much. His model sounds like what MS does with Fable 2.
I'm seeing this as him wanting to shrink a dev window. Can't blame them but I'd like the whole game for full price thankyou.
I agree with Smartguy. DLC is good to extend a game's life but making an unfinished game just to make money off DLC is outright shady. I'll buy DLC if i really like that game and just want to keep getting immersed in the environment but i only had one game that i've bought DLC for and that was Fight Night Round 4 just to get ODH.
Woo-hoo! Economies of scale in the video game industry… my specialty!
Ok, number one, they guy who talks about this "cheaper game, more DLC" model is the head honco at THQ. THQ is a developer. Most developers and all publishers want to sell you DLC instead of a physical copy of the game because there is no second-hand sales that they get "shafted" from , plus it allows them to piecemeal a game out bit by bit. This, in theory, equals more profits for them.
Second, this business model benefits the producers (them) and not the consumers (us). Of course you can mention the fact that you are madly in love with the idea of digital content since it is quick, convenient, and cheap (for now). Those benefits are being pushed by the producers to help gloss over the negatives of DLC because ultimately, we (the consumers) have the power to shift markets as we vote with our dollars. They are trying to do everything they can to control that "shift" so that they can benefit (i.e., trying to get us to love DLC, so that in the future, they have more control over what we play and how much we pay for it instead of US making that decision and them carrying out our wishes in order to stay competitive).
Third, games SHOULD be getting cheaper as technology increases since it helps the economies of scale kick in and apply a downward force on game prices. Factories become more efficient, game development is nailed down to a science and distribution channels are optimized. Because of this, and the competitive nature of the gaming market should theoretically bring the retail price of a game down from $60 to $50 and even $40 if the demand curve slides down enough. However, the main upward-driving force on the price would probably be inflation- especially since the finished product takes years to produce. Unfortunately, when a company decides to make a game, the money they use in 2005 is not worth the same amount in 2008. So not only do they have to make the initial investment back, but they also have to compensate for inflation AND make a profit. In addition, inflation also increases the cost of living standards of employees, which mean that even more money needs to be recouped for resources. This burden places an artificial increase in the real dollar amount of the finished product. This model also helps explain why games that have a faster development-to-retail cycle are more profitable.
It is smart business if you are a developer or publisher and don't mind screwing over your consumer base in the future. And yes, it is totally Kocklickian, because anyone who does this can lick m-
I'll stop there.
-M
@tokz_21 It wouldn't be unfinished. Stripped is a better word for it. That said, would you avoid games like that?
@Iceman THQ is primarily a publisher. It has some in-house development studios, but many of its games are developed by other companies.
Also, development budgets for games are getting bigger. Sure there are more efficiencies, but console games are getting more expensive to make. That's why a lot of developers are attracted to mobile and social gaming.
Oops- A rare spelling error on my part: On the first sentence of my second paragraph, I meant "the guy…" not "they guy…"
Don't get used to seeing things like that, though.
-M
@rpad
well we can word it whichever way you want but i would still consider it unfinished. i would rent them more often than i do now. then if i do end up purchasing it, the DLC would have to blow me away in order for me to get it.
Thank you for clearing that up, Mr. Padilla. Even though I erroneously called THQ a developer instead of a publisher or publisher/developer, my statements still stand since I group both of those factions together as interested parties in making money off of the production, distribution and sale of games.
-M
@Ray
With the tools in play now and in the future it is arguable that costs would go down. Less labor to be exact as well as a shorter time to market. Iceman hit a good point with economies of scale. These devs are being bought up and stuck under a bigger roof. Their costs go down by that reason alone. I think the console makes themselves need to remove price floors on games so these publishers can be more competitive. Yes this is what needs to happen.
Sure seemed to work for 2k sports…..but that lead to EA giving the NFLPA a boat of money.
@Iceman
We could have the most uninteresting discussions over beers you and I.
@Smartguy;
Get me the strongest, darkest lager you can find and you got yourself a deal.
-M
I'm actually drinking a Samuel Adams dunkelweizen for lunch.
@smartguy I've not seen any evidence of budgets for triple-A games going down. Even though tools improve and processes get more efficient as a generation goes on, they always go up when new hardware arrives.
@Ray
Indeed it takes money to make money but economies of scale are in place.
I have no idea how much it cost to make Uncharted 2 but I would feel safe in saying that a lot of dev costs were covered by the first game.
@Iceman and Ray
I'm more of an ale guy. Chimay Grande Reserve being my favorite Trappist Ale. Iceman try a Turbodog some time. I used to make it for a living before I became an accountant. It's really good with spicy food. I love spicy food and I love very spicy food even more and Turbodog will stop the burn lol. Pretty strong too.
@smartguy Creating the engine was huge cost for Uncharted, but that's something Naughty Dog will use throughout this generation. Uncharted for PS4 will surely cost more to make than any of the PS3 games.
@Ray
Yes it will. Then the trend of it being cheaper begins. I still think removing the price floor is the best way to sell both consoles and games.
@SG
Speaking of spicy food. I got a bottle of Dave Insanity Sauce Private Reserve for my birthday.
You people are nuts! I never understood the masochism of your taste buds and digestive system with food that would make a llama keel over. But hey, if you guys like to ingest liquid lava, more power to you. Enjoy your habanero heaven, Slicky.
@Smartguy;
I've never heard of "Turbodog", but it sounds like my kind of beer. The closest thing we have down here to that is "Turboperro", but it's actually made from fermented dog piss. Ha, no, seriously, there are no good microbreweries down here. The few that are around taste like something a Guatemalan made in his bathtub with parts of animals and plants that you never knew existed.
-M
I think the idea of selling me a game at a cheaper price with the intention of giving me the last levels or missions to complete the story only after I shell out more money to the publisher and developer is a ridiculous idea that I would not want to support. I would rather avoid those games than support them.
When I buy a game, no matter the price, I expect to get a full game with a complete story. To knowingly sell me something that is considered incomplete and giving me that as a full game is dishonest IMO. Just because we have been forced to get used to a $60 price point for an average game does not mean that we should look to any solution that has a cheaper up front cost as a good way out.
This proposed model is only beneficial for publishers and developers. Under this model they can give us a game that is incomplete and only finish the game by paying for DLC, which will take up more space on our hdd's eventually forcing us to store more information on hdd's leading to the need for bigger hdd's just to keep a decent game catalog. This would be like selling me the first 100 pages of a horrer novel which ends at a part where you don't know who the killer is but you do have some clear grasp of the events surrounding all of the killings you are reading about and the search for the killer. Now the next section that you purchase will contain the next 50 pages which also ends on a similar note. The story is not completed, but you have experienced a good story so far with an interesting plot and concepts.
This would continue on for as much DLC as the developer and publisher decide to sell us. This also gives the developer the opportunity to come up with a basic concept to sell us, which is incomplete, and poll the players on where to take the story next. That would be a cool concept to incorporate, but I don't see many developers actually being ethical with this ability and most of them would simply use it to profit off of the consumers. What could be done, and what is more likely, is that just like script writers for a tv show can change each of the DLC's would be be written based on how many people downloaded or kept downloading a game's DLC. If sales started to decline you could kill off a game. If they kept up, like with Halo being a good example of a game that people will continue to buy, you could keep releasing DLC after DLC just to keep making a profit and stringing along the consumer. I admit this might be an extreme example, but it is a possibility in some form and it is one that I do not want to support.
@Iceman
I don't care for spicy food like that either. I personally don't think any of it has much taste to it.
@Iceman
Abita Brewing Co in Abita Springs, Louisiana. It was a microbrewery but has grown exponentially in the last 8 years. Turbodog is an ale that is darker than coffee. The brew is quite light though when put against the common perception that a dark beer has to be heavy. If you are out and see it available you should try one.
@Slicky
You and I would get along just fine with a pot of crawfish and ice chest.
@ DLC
I'll wait for the GOTY editions unless I feel that the publishers and producers and such truly earned and deserve my money.
@ Ahmadinejad
That dude is nuts and they say people can't handle the truth so I'll leave it at that.
HAPPY BIRTHDAY RAYMOND PADILLA!!!!
@thundercracker Thanks very much!!!
Yes happy birthday Ray. Get you some.
Happy Birthday Ray!!!
I mighta already posted this on FB but Happy Birthday Ray!!!!!!!!!
Happy Birthday R-Pad!!111!11!
(Yes, I had to be different <_< )
Happy birthday Ray!!
Happy 24th Birthday to my favorite verbal entertainer!
Or as they say down here: "!Felicidades!"
-M
Happy birthday Ray!!
Happy Birthday Ray.
@iceman
lol ray wishes he was 24…so do i
Happy birthday rpad!
Thanks for all the birthday wishes! I'll be celebrating tonight with a bunch of game industry people. Pictures will be posted when I'm done with my hangover tomorrow. Ha!
@Ray
http://www.motivationalz.com/pictures/Olivia_Munn.htm
Happy Birthday (again) lol. I don’t think I need to say anything, the picture is worth 1000 words.
Happy birthday Ray!
@Sandrock
lol i called him Rpad on FB.
@beer
Gimmie a Sam Adams or a Killians any day.
@this rediculous topic
If this is what we’re supposed to be looking forward to in the future of gaming, I’m sadly disappointed. I mean really, are developers just paid slave laborers(ugh, spelling it wrong possibly)? I’m a firm believer of wanting to own a hard copy of games I really love. And I mean the whole game, not some chopped up funky version. I’ll end up being a permanent MMO player just so I know I’d be getting my money’s worth there.