Changes to the Video Game Buisness Model

Great Article in this week's Economist about the Asian business model for selling video games.

http://www.economist.com/business/displaystory.cfm?story_id=11632829

Imagine getting a game free and just paying for upgrades.  To some extent Ace Combat 6 seemed to have an element of this with the large variety of aircraft and aircraft customizations that you could buy for the (albeit $60) game.  A number of other articles have pointed to Microsoft/Xbox having borrowed from this business model.  By the time you purchase all of the additional maps for COD X, Halo X or (even better....hint, hint...a Command and Conquer 3 Game!)...you have spent actually $70 or more (including the base $60 for the game.)

There is also a substantial amount of social pressure to spend the additional money on expansion maps because you don't want to be 'that guy who doesn't have the maps" and limits what everyone else can play.  I've seen this numerous times at the LAN parties I host when otherwise miserly and content game owners (talkin' bout you BlasterBouncer and Captain Ahax) become obsessed with first downloading expansion packs so they are not left out of the loop.

While I have never actually played an MMORPG I think that they are completely fascinating from both a study of 'virtual economies' and possibly as a way to study some human behaviors both individually and in groups.

Next time...Online Video Games as a predictive tool in a globalizing world...