Today I was going through the PGR2 scoreboards, and noticed they had roughly 50,000 people each registered for the premium downloads PGR 2 had, which were basically some 8 new cars + 1 track each, priced at $5/5 euros. Now that is more than $500,000 in revenue, considering the exchange rates. That is also almost pure profit except the development costs, since there aren't any distribution costs, and I'm guessing bandwidth is very very close to free (we're talking about microsoft, after all). The development costs of these simple packs can't be very high either. Here we see a quite successful model that I'm sure MS will also follow with Forza and PGR3, and most likely sony with GT next. Even if only 50,000-100,000 people download these packs, if they're priced competitively, it creates additional revenue for the publisher. My guess is that, if both Xbox 2/PS 3 has some kind of mass storage (1gb memdisk should be more than plenty for this kind of stuff), we're going to see much more of these premium packs.
The key point is pricing, $5 is something most people just pay, but with Xbox Live Arcade they priced games at $15-$20, which is basically too high.
The key point is pricing, $5 is something most people just pay, but with Xbox Live Arcade they priced games at $15-$20, which is basically too high.