Downloadable Content Is the Future

At Gamefest 2008, Alcin Gendrano, who is group manager for Xbox Live Marketplace, and Chris Novak, lead design director for the Microsoft Game Studio, have talked about how paid downloadable content can create an alternative to the used games market, which now seems to be growing, especially as major retailers warm up to it.

Alvin Gendrano says that games that get content through downloadable packs have a longer shelf life than those games that never get additional goodies. He talked about an internal study done by Microsoft, which says that "games with PDLC were still selling for $59; those without were selling for $56", mainly as the initial excitement for the title fades.

Perhaps in a hint as to the future plans of Microsoft, Gendrano also talked about how an MMO can be supported by the sale of items. He said that "This business is very popular in the PC space, especially in Asia, but we have not seen it in the console space yet." Could Microsoft be developing a console MMO which relies not on subscriptions but on micro-transactions?

Novak talked about the fact that downloadable content needs to be more than more maps, more characters and more levels, it needs to also provide new ways of playing the game that it targets. Developers can create a DLC pack that is filled with new stuff, but it will only get the attention of gamers if it makes them see the game in a new, innovative light.

Apparently, on the Xbox Live Marketplace companies can create "a piece of PDLC that has both single and multiplayer content" and it will most likely bring more downloads.

Microsoft thinks that pushing for more downloadable content will make players hold on to their games longer than they do now. This will most likely push down the number of used games that are sold on the secondary market and thus increase the number of new games that are sold.