One of the principal staples of the “next generation” of video game hardware is the advent of downloadable content and online purchasing. The prospects and potential were almost limitless, and Microsoft’s Xbox360 was the first console to fully embrace the idea and implement it directly into its system’s functionality.

Late 2005 to early 2006: the first wave of downloadable content on the Live service was mostly successful. The arcade games were an instant hit; for the price of a movie gamers could download casual games that were integrated into their profile and gamercard seamlessly. Most of them featured addictive gameplay (see fan favorite Geometry Wars) that more than justified their 5 or 10 dollar price tags. In addition to games, the service provided gamerpics, themes, and in-game extras that were available for an adjusted fee. The concept was new, and Microsoft seemed to price materials accordingly; there were few instances of “price-gouging.”

Fast forward to May 2006: Microsoft and Oblivion publishers Bethesda release downloadable content for the massive RPG in the form of horse armor. The armor was almost entirely cosmetic; it only affected the gameplay in an aesthetic manner, and only on a horse. The kicker was the fact that gamers were charged over two dollars for the content. A screaming backlash was voiced on internet forums and chat rooms; what was Microsoft thinking charging that much for a small, insignificant piece of game material? Subsequently, Microsoft’s strategy actually responded to the customers’ needs; most downloadables were given a “standard” price (i.e. gamerpics cost 20 MS points each; about a quarter).

Fast forward once more to Spring 2007; Microsoft slips up and news is leaked that the company basically forces Epic to charge gamers for new Gears of War maps that the developers wanted to release for free. Strike two came when downloadable songs for the hit rhythm game Guitar Hero II were released on the Marketplace: six dollars for three songs. It sounds expensive as is, but it gets worse: the songs were already released in Guitar Hero I for the PS2. As more song packs were released, it became evident that it would be cheaper to actually buy Guitar Hero I for the PS2 than buy the songs on the Marketplace (the total for all previously released songs jumped past 90 dollars). Only one week after that debacle, BradyGames and Microsoft released a series of video guides for Gears of War. These video guides cost over a dollar each, yet were available free of charge on countless websites such as YouTube and GameFAQs.

The “fleece-flocking” was met understandably with cries of contempt, some rational attempts at discussion, and a whole lot of rash, fanboy-ish rejoinder claiming they wouldn’t ever support Microsoft again, or that they were selling their 360 for a Playstation 3. The primary cause for concern is not the fact that some videos were overpriced, it’s that the overpricing of videos might lead to overpricing of other downloadable content (new maps, patches, and even content that developers intended to be free). The easiest and most effective vote is the wallet: if the consumer doesn’t want the content, or believes it is overpriced, then the wallet stays shut. If the content doesn’t sell, then it will be docked in price, and subsequent downloadables will be released at a price the company knows gamers will easily pay.

There is only one problem with this option: some gamers are not well-informed enough to know that the content they’re buying is available free somewhere else. Others will buy content just to buy it; e-bucks and Microsoft Points don’t seem like real tender, and it’s easy to just affix a credit card to the account and go on a digital shopping spree. And yet other gamers are just plain rich enough to buy all of the content their heart so desires (many of them with their parent’s credit). It creates a dilemma both for the consumer and for the marketer.

GrahamDJ’s Opinion
So here is the standstill: do I continue to support Microsoft and game developers by purchasing their content, knowing that it will spur them on to sell more expensive and over-priced goods? Yes and no. Here’s the skinny: I buy Xbox Live Arcade games. All of them. Arcade games are, in essence, the pajamas on the cat known as the Xbox360. Many cry foul at the retro and original games being released for 5 or 10 dollars when there are so many other gaming options. However, they average out to being cheaper than a weekend movie, and their entertainment value is exponentially greater. Now, how about the countless television shows? I downloaded a number of them before I realized that I couldn’t watch a TV show more than once. I consider the television downloads overpriced for their entertainment value, so I don’t buy them anymore. I’m sure there is someone out there who can’t find those Gears of War COG tags; the video guides might be a Godsend to him. Buy what is worth it for you; no one is forcing your hand. The conspiracy-tinged howlings that explicitly claim retail games and expansion packs will skyrocket in price are just that – conspiracy-tinged howlings. If a map pack is more expensive than you think it should be, consider its worth. If you can afford it, and it will get a significant amount of playtime, buy it. If not, don’t. Microsoft provides us with entertainment, but they are a company that exists to make money, just like every other company in the world. While they do cater to gamers’ whims on occasion, why would they release something for free when they could make some dough off of it? If you didn’t know, Microsoft is negative billions of dollars on the Xbox front; they need your money more than you think. But if you don’t want to give it to them, don’t. Just stop bitching about it; when I go to the movies, I don’t whine that they are selling Mike and Ikes for 5 dollars, I just don’t buy them.