14 MCV 18/09/09
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NEWS ANALYSIS: DLC AT RETAIL
Clockwise from top left: Ben Feder (TakeTwo), Tim Ellis (HMV), Simon Wells (Activision Blizzard) and Kim Bayley (ERA)
WHEN WORLDS COLLIDE With more DLC finding its way to retail shelves, are we seeing the start of a healthy relationship develop between bricks and mortar and digital distribution? James Batchelor investigates… THE GROWING importance of downloadable content is plain to see. Almost every major release over the past year has boasted DLC episodes and expansions, and now this content is making the journey from the online space to the High Street. Since the summer, the industry’s release schedule has been rife with titles that originated from or contain previously digital-exclusive content, destined to sit on shelves alongside or replace their original retail versions. This has been a mix of standalone versions of the DLC itself, such as Fallout 3’s Game Add-On Packs and the upcoming Grand Theft Auto: Episodes from Liberty City, or games that were previously released online, such as Warner Bros’ Watchmen: The End Is Nigh. Alternatively, there are a number of upcoming expanded re-releases such as Star Wars: The Force Unleashed: Ultimate Sith Edition, and the Game Of The Year editions of Fable II and LittleBigPlanet, with content that has previously only been available online. In short: digital distribution has come full circle – and while retail might not be the place
that these games or add-ons originally ‘premiered’, they are proof that publishers have moved to bring a bit of unity, and find ways to encourage more sales, from how digital and retail can intersect. “The only way that retailers have traditionally been able to participate in DLC is through the sales of points cards,” says Activision Blizzard’s brand manager Simon Wells.
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industry is watching these products carefully. Take-Two, for example, has told investors it will base its policy on future digital content on the expected success of Episodes from Liberty City, a new disc which incorporates the DLC for GTA IV. “Everything is going to have a download component, needs to have a download component to it and this is one of the key
Releasing downloadable content on disc gives retailers the opportunity to share in its success. Simon Wells, Activision
“By releasing existing DLC as part of a bundle with the original game, retailers get the opportunity to share in the success and sales of this additional content, as well as maintain the product’s longevity.” A SHOT IN THE ARM Add-on packs are nothing new, but the digital debut of them followed by a migration to disc is something that has only truly developed in the last one or two years, and as such the
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lessons [we’ve learned from GTA IV],” CEO Ben Feder revealed during a recent investors’ call. “We’ll see how [the DLC] in the retail SKU performs. We are actually pretty optimistic about it and we think it’s terrific value – for $40, two great GTA games boasting new content at retail is an unbelievable value.” Given the high budgets for games like GTA and their extra content, the profit-making and
cost-mitigating potential of repurposing DLC to reach new consumers is obvious. Of course, even without a retail release for downloadable content, retailers have been benefiting from the continued digital support for new and older releases. Gears Of War 2 was propelled back into the charts in July, thanks largely to the release of its Dark Corners DLC. Bringing such online material to shelves as new or expanded products only serves to improve a game’s sales and status further. “As a brand extension, DLC gives consumers a longer playing experience and helps maintain the profile, sales and shelf-life of the original game,” adds Paul Oughton, sales director for Bethesda – who likewise recently saw Fallout 3 re-enter the charts alongside an add-on disc filled with former DLC content. Hybridising the digital and retail worlds helps to extend and promote brands and their shelf-life, Oughton says, as well as providing benefits to both the traditional bricks and mortar world, plus the ever-expanding digital one. DIRECTOR’S CUT As parallels continue to emerge between our industry and that
of Hollywood, the rising number of DLC-enhanced games on the shelves begins to follow the trend set by the DVD market. Some of the most popular films of all time have been able to maintain sales momentum and stature over long periods of time via re-release in the form of special editions, ultimate editions, director’s cuts – all driven by the inclusion of extra content. Key classic games can now become more permanent fixtures on store shelves in the same way. It’s a technique that could become more prevalent in the games industry should the current line-up of titles based on downloadable content prove to be strong sellers. With many games falling from the public mindset mere weeks after their debut, such products stand to recreate the success seen with expanded DVD and album releases – something retailers will no doubt welcome. “We’ve always felt that, where possible, added value is more often than not a preferable route to achieving enhanced customer engagement and increased traffic and higher spends,” says HMV’s head of games Tim Ellis.