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Introduction

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.

Features and benefits

* 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.

Highlights

Delivered digitally over the Internet, DLC offers a greater degree of profitability than traditional boxed retail releases and expansion packs, and can instantly offer a consumer – and the publisher – greater longevity and product life cycles during new-release dry spells.
For a DLC package to be successful it must offer consumers a new, fresh experience or desirable and well-thought-out additional features, rather than superfluous narrative extensions or inconsequential in-game items.
The oft-criticized Electronic Arts Inc. (EA) emerged as an early leader in the DLC space, and the company has continued to pursue DLC as a driver of profitability over the past few years, pioneering the 'day-one DLC' model and more recently moving towards a micro-transaction-esque strategy on its popular sports titles.

Your key questions answered

* 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?

Table Of Contents

Video-game DLC: Maximizing monetization of popular titles
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
Further Reading
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