14 DAY TRIAL // Brian Farrell, who is the chief executive officer of video game publisher THQ, has suggested that the future of the industry he is part of is not linked to huge releases priced at the now-usual 60 dollars, but on the creation and launch of lower-priced games that will get to players via digital distribution platforms.
Speaking about the launch of MX vs. ATV Live, a game which will sell for 40 dollars on launch day, the CEO said that, “If we deliver an experience that the gamer values and wants more of, we build on that with digitally delivered downloadable content, which has the effect of increasing the average revenue per user.”
MX vs. ATV Live is the first game from THQ to use an entirely new business model, with the initial launch being priced lower than normal in order to get as many players as possible to pick it up.
The company is betting on the fact that this larger than usual install base will then pick up a significant number of the more than 100 pieces of downloadable content that THQ plans to launch, making the overall experience successful from a business perspective.
Farell added that his company sees digital distribution, on both the PC and on home gaming consoles, as a boon because it greatly reduces the fees associated with distributing video games and because it eliminates the need to keep an inventory.
He acknowledged that the future of the model depends on cooperation from big players in the video game world, adding, “We need to work with Sony, Microsoft and Nintendo on the business model that works for both them and us.”
The CEO also talked about how reviews influence the performance of a game like Homefront, acknowledging that gamers are not more interested in getting information about a game before buying it from magazines and online sources, but adding that word of mouth is still the most powerful marketing force.