Videogames have traditionally behaved as information goods much like music and films. However, through the rising popularity of downloadable content (DLC), game and console producers, as well as consumers are witnessing a revolution in gaming.
Downloadable content has already caused restructuring in pricing through versioning, as well as in the networks themselves where the consumers also produce content themselves. Yet DLC is still a developing phenomenon with new applications being constantly introduced.
What kind of opportunities does DLC present to game producers, especially in pricing? Is DLC only a game-specific phenomenon, or can it affect also other types of information goods? Can the pricing models etc. adapted into video games be used in other types of products as well?
Great topic for an essay. How will you approach this problem? Are you planning to provide examples of how DLC could be used in other types of products? Or will you focus on video games?
The DLC in video games is very new to me. Since I rarely play games, I wonder if it's like the records or game software which is downloadable online?
BTW, will you also include the legal issues of information products in your essay?
Consumer made additional content has been present in PC gaming for decades due to the existence of internet access on computers and the relative ease of PC-based programming and code manipulation in relation to gaming consoles.
This content has however been unofficially been distributed from consumer to consumer. With new consoles (XBOX360&PS3) additional downloadable content is being distributed by the console platform or game producer, making it readily available to all gamers through services such as the Playstation Store. DLC therefore is an addition to the original game. For example, the game GTAIV costs 60€, but if you download the extra storyline pack the product costs 80€. In games such as Skate 2 users can create graphics with a tool on the EA servers, and download them into their game without the need for the platform in between. Also users can upload game videos very easily to EA's servers for all to see. Also on these servers are located online multiplayer rankings, so clearly EA has developed its online capabilities a lot since the case discussed on our Information Economy course.
As an example, here is one of my videos: http://skatereel.ea.com/members/2/174729700/113724.aspx
I will not deal with legal issues, as the distributors of the content are in most cases the console producer, and in others the game producer, who legally own the right to their material. Or what did you mean by legal issues?
In my essay I will also discuss possibilities of other information goods benefitting from DLC, but currently there are none outside of gaming that I can think of. Also the DLC in gaming is a very new concept, and is developing rapidly, therefore all its possibilities have not been discovered yet. I'm sure that after a year or so the whole topic will be a lot clearer.
I just downloaded Google SketchUp (a simple program for 3D modelling) for fun and there are lots and lots of downloadable components created by users. Version I downloaded was free, but there are also other versions, which may be made for professionals (I don't know, I'm not an expert). However, by having free version Google can create a great user base who create content and also serve the ones who buy the Pro version.
I'm not sure if SketchUp really is a good program for professional, but it's just an example of one product outside of gaming where there is a lot of downloadable content.
I address computer applications with downloadable content in my essay, but the main focus is on video gaming, where the distributor of the content is the platform, ie. the console producers marketplace. The main difference is that on the internet the app/game producers can post their content freely, and users can download and distribute their creations freely as well, when in comparison to video gaming, the platform provider mediates the content. This can however change, since already Electronic Arts, for example is storing and distributing user created content on their servers.
PRODUCTGAME GTAIV
