How to Sell Something Other than Software

Two interesting stories about big game software companies finding other ways to make money…

Rock Band and Guitar Hero Drive Digital Sales:

In the two months since MTV Networks and Harmonix released the music-based video game Rock Band, players have purchased and downloaded more than 2.5 million additional songs made available after the game’s initial distribution.

Activision, meanwhile, said it has sold more than 5 million new songs via download for Guitar Hero III: Legends of Rock since it began adding downloadable content in early November.

By comparison, it took wireless operator Sprint four months to sell 1 million songs on its over-the-air full-song download service. While new digital music services competing with iTunes and free peer-to-peer services have struggled to convince music fans to pay $1 for a single, downloadable tracks for games like Rock Band and Guitar Hero are flying off the digital shelves.

[Via: News.com]

The Video Game May Be Free, but to Be a Winner Can Cost Money:

In a major departure from its traditional business model, E.A. plans to announce Monday that it is developing a new installment in its hit Battlefield series that will be distributed on the Internet as a free download. Rather than being sold at retail, the game is meant to generate revenue through advertising and small in-game transactions that allow players to spend a few dollars on new outfits, weapons and other virtual gear.

[Via: NY Times Technology Section]

While I don’t see Guitar Hero IV being offered for free in hopes of making up the revenue on master track downloads, the revenue potential of this “free” distribution method is definitely a nice pad to the bottom line. In EA’s case, the model is more extreme but perhaps the upswing is even better as they will be able to tap a wider audience.

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