Posted Oct 10, 2008 at 09:16AM by Isaac C. Listed in: Opinions & Analysis Tags: NBA, Downloadable Content, Lazard Capital Markets, Colin Sebastian, Lazard Capital
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Grand Theft Auto IV - Image 1Have you guys noticed that platforms seem to have a new strategy of grabbing exclusive downloadable content for games?

Well, the strategy worked for the Xbox 360 when they bagged exclusive DLC for Grand Theft Auto IV. One analyst, Colin Sebastian of Lazard Capital Markets, says that this is just the beginning. Eventually, exclusive DLC might become the latest battlefield among the consoles.

If you remember, Microsoft reportedly paid US$ 50 million for the exclusive downloadable content for Grand Theft Auto IV, which no doubt boosted Xbox 360 sales. They managed to grab the same deal for Fallout 3 and Tomb Raider: Underworld. So far, the only game Sony's been known to employ this tactic to is Mirror's Edge.

Sebastian says that this strategy to provide exclusive DLC to sell platforms is still "unproven," but adds that the release of GTA IV's DLC will be the strategy's "key test." He remarks that for the strategy to work, "the content needs to be high quality and add something to the overall game experience."

He predicts that Nintendo will get in on the act soon, and that the market for exclusive DLC will get more and more competitive:

We're still in the early stages of growth, but over time, there is going to be more competition for online content as Sony and Nintendo enhance the services available to their users, and close the gap with Microsoft.


It's more cost effective for the platform manufacturers to lock up exclusive online content than entire games.


Well sure, why pay to develop entire games when you can just offer extras for less?

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