Reuters Addresses Xbox 360 Game Prices
Reuters is running an interesting story today that takes a look at the real prices gamers are paying to play Xbox 360 games. The company did some research of the additional costs gamers incur after the get a game, including the cost of Xbox Live Gold membership and post-release downloadable content. Here are some highlights:
More than 3 million Xbox Live subscribers pay a $50 annual fee that allows them to play games online against one another. About 3 million more use the service without an annual subscription, taking the total to more than half Xbox users.
Through Xbox Live, players can buy maps for fighting terrains and other add-ons that are indispensable to serious gamers, usually at a cost of $10 each. Such add-ons used to be free most of the time and the additions can raise a game's cost to $80 or even $100 over its life span.
Wedbush Morgan analyst Michael Pachter estimates Microsoft charges a royalty rate of 30 percent for most downloads. That means that, for a $10 download, Microsoft gets $3, while the publisher pockets $7.
The article also mentions the hot discussion between Epic Games and Microsoft regarding the cost of the Hidden Front Map Pack, which Epic wanted to be free but M$ decided to release it at a cost of 800 Microsoft Points.
Microsoft was criticized by many gamers after the May 3 release of a map download to its popular alien-blasting game, "Gears of War," which has sold more than 3.7 million copies worldwide since its November release. The first map pack was released for free months earlier and generated more than 1.5 million downloads. The new download included several new battlegrounds online users could fight on during multiplayer matches, but this time they cost $10.
Mark Rein, vice president of "Gears" developer Epic Games, said in an interview on video game Web site 1up.com that the studio would have preferred to give away the maps, but Microsoft, which published the game, decided to charge for it.
This set off angry complaints from fans who felt Microsoft was taking advantage of them. Epic declined to comment for this article.
Microsoft Xbox Live group product manager Aaron Greenberg said few gamers complained about the add-on features and that the charge helped Microsoft recoup the cost of developing games and running the expensive online service.
To read the entire article, click here.
More than 3 million Xbox Live subscribers pay a $50 annual fee that allows them to play games online against one another. About 3 million more use the service without an annual subscription, taking the total to more than half Xbox users.
Through Xbox Live, players can buy maps for fighting terrains and other add-ons that are indispensable to serious gamers, usually at a cost of $10 each. Such add-ons used to be free most of the time and the additions can raise a game's cost to $80 or even $100 over its life span.
Wedbush Morgan analyst Michael Pachter estimates Microsoft charges a royalty rate of 30 percent for most downloads. That means that, for a $10 download, Microsoft gets $3, while the publisher pockets $7.
The article also mentions the hot discussion between Epic Games and Microsoft regarding the cost of the Hidden Front Map Pack, which Epic wanted to be free but M$ decided to release it at a cost of 800 Microsoft Points.
Microsoft was criticized by many gamers after the May 3 release of a map download to its popular alien-blasting game, "Gears of War," which has sold more than 3.7 million copies worldwide since its November release. The first map pack was released for free months earlier and generated more than 1.5 million downloads. The new download included several new battlegrounds online users could fight on during multiplayer matches, but this time they cost $10.
Mark Rein, vice president of "Gears" developer Epic Games, said in an interview on video game Web site 1up.com that the studio would have preferred to give away the maps, but Microsoft, which published the game, decided to charge for it.
This set off angry complaints from fans who felt Microsoft was taking advantage of them. Epic declined to comment for this article.
Microsoft Xbox Live group product manager Aaron Greenberg said few gamers complained about the add-on features and that the charge helped Microsoft recoup the cost of developing games and running the expensive online service.
To read the entire article, click here.
posted by I am Canadian at 22.5.07
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