Video-game DLC: Maximizing monetization of popular titles

The advent of digital consumption and connected gaming has led to the rise of DLC in the video-games industry. As this becomes an ever-increasingly important strategic consideration for developers and publishers, this report analyzes the trend towards DLC, examines the major benefits and pitfalls of offering such content and looks at some major industry players' recent DLC strategies.

Scope

  • Analyzes the trend towards DLC and examines why developers and publishers are increasingly placing focus on such content.
  • Examines and contrasts the recent DLC strategy of EA, Activision-Blizzard and Nintendo.

Reasons to buy

What are the advantages and disadvantages of DLC for publishers and developers?

Which trends in DLC have consumers reacted badly to?

What are the main aspects that developers and publishers need to bear in mind when creating their DLC strategy?

Companies mentioned

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Table of Contents

OVERVIEW

Catalyst

Summary

WHY THE FUSS ABOUT DLC?

Increasing monetization and profit

Extending product lifecycles; maintaining consumer interest

Diversifying product offering

NUMEROUS POTENTIAL PITFALLS WITH ...

OVERVIEW

Catalyst

Summary

WHY THE FUSS ABOUT DLC?

Increasing monetization and profit

Extending product lifecycles; maintaining consumer interest

Diversifying product offering

NUMEROUS POTENTIAL PITFALLS WITH DLC

DLC can devalue retail release

Misjudged DLC can fragment a title's user base

DLC must offer something new and desirable to customers

LEADING PLAYERS' RECENT DLC STRATEGIES

EA pioneered concept of 'day-one DLC' and console micro-transactions

Activision and Bungie move towards large-scale expansion with Destiny

Nintendo follows customer-centric approach to DLC

CONCLUSIONS

DLC offers great opportunities, but developers and publishers must be careful

APPENDIX

Sources

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