toggle

AAPL Stock: 106.32 ( -1.02 )

Printed from http://www.macnn.com

Gaming industry's business model "does not work"

updated 02:05 pm EDT, Fri August 11, 2006

Business models flawed

LucasArts president Jim Ward says that in his view, the growth of the game industry has been crippled becuase of "a business model that does not work. This industry has been flat for the past six years; we've been selling games to the same people. Our revenue model is based on one shot at retail - we have no back-end revenue streams like a movie might in terms of DVD, TV, that type of thing." He sees the solution as being services like Xbox Live, which generate extra revenue through subscriptions and small transactions. But do we really need to commercialize every aspect of gaming in order to turn a profit, or is Ward being greedy? Regarding the PS3 he says, "I hope that price point [$500-600] won't be prohibitive." It sounds like he would rather just shift the time and place of the expense.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bring ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

toggle

Most Commented