Counting the Game Industry’s Gold

Like most industries, the gaming industry is bound by the conventional economic wisdom that you must spend money to make money. Historically, that’s meant taking a loss on every game system sold (with the notable exception being most Nintendo consoles) in order to tap into selling game after game to console owners. This measure of success is known as the “attachment rate” or “tie ratio.” A somewhat (November 2008) dated Gamasutra chart shows that the Xbox was in the lead, with 6.6 games/system sold, followed by the Wii at 5.5 and the PS3 at 5.3.

This statistic has historically been a powerful metric for measuring market penetration and overall success for a console. After all, what’s the point of selling a console if you can’t sell game after game? But as with many things in today’s integrated media world, the lines have blurred and traditional metrics don’t necessarily tell the whole story.

This generation of consoles has produced systems that have significant secondary revenue streams contributing to the bottom lines of developers and console manufacturers alike. →  Do a barrel read!

It’s the DLC, stupid!

Recently details came out about Guitar Hero: World Tour. It will have a fancy drum kit with faux cymbals. It will allow for music composition (sweet on paper). It may or may not be backwards compatible with DLC to date (depends on what article you read). It will feature approximately 85 master track songs, and will have a stronger downloadable content stream. It will also feature improved peripherals. Pricing will be “competitive” with Rock Band.

Rock Band 2 was just announced. It will feature improved peripherals, as well as support for third party peripherals. This is a great idea, because the equipment business sucks, and if Harmonix can find someone else to make better equipment, they can focus on their core competency: the music (we’ll get into that later). DLC songs will not only be forwards compatible, they will be backwards compatible: even if you choose not to upgrade to Rock Band 2, you will be able to continue to purchase new DLC and use it. →  Postgaea 2: Cursed Memories