Microsoft European head Chris Lewis shared some comments reinforcing the importance that his company places on securing exclusive content.
Chris Lewis
Exclusive content – even if it’s only for a set period of time – is crucial for differentiating the Xbox 360 from the PlayStation 3 and Wii. They are important. DLC windows of exclusivity are critical for us for differentiation. We’ll continue to bring those exclusives through our own studio work, Gears and Forza and other titles.
Microsoft is known in the industry for securing not only their own exclusive content with franchises such as Gears of War and Halo, but also for getting timed exclusives on downloadable content and even whole games. Microsoft’s announcement several years ago that the DLC for the Call of Duty franchise would be timed exclusives for the 360 was a huge boon for the system and the first of many such deals. The strategy seems to be working, since online transactions for Grand Theft Auto IV and Call of Duty content on Xbox Live often makes more money than subscriptions to the service itself. Lewis emphasizes the importance of the service in their business plan by saying that it is the “oxygen” that keeps them running.
We have good, healthy partnerships with all the publishers around the globe, now. Over the last 10 years those have developed and they like the momentum we have. It’s hard to trivialize 55 million units out there. Everyone loves the install base. We did grow 20 per cent last year in Europe. We want to grow even more this coming year. If you think where we are in the life cycle that’s a fairly unusual ambition at this time.
It is interesting to note that these exclusivity deals are the same that Jonathan Blow spoke out so vehemently against last week, calling Microsoft’s policies a “pain in the ass” for indies. The contract process for securing timed exclusivity, he stated, required a “third to half” of the effort required to make a whole indie game. Lewis’s statements curiously focus on AAA games and content, whose massive design process makes the contract effort seem like a “drop in the bucket” according to Blow. On the other hand, he stated that Xbox Live Arcade is a strong marketplace that while unwieldy for indie developers, offered a wide install base to distribute games to.
Clearly, Microsoft has put a lot of effort into building an online empire for game content and it is paying off. It will be interesting to see whether the trend will continue as other services and methods of online distribution rise. Will Microsoft adapt their online strategies to keep exclusivity with angry developers like Blow? Only time will tell.
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