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Xbox Live Community Games business model detailed

Microsoft’s free XNA Game Studio toolset has long been available for download to wannabe developers and back in February this year we even got to sample seven of those community-created games. The question that’s been bugging us since the announcement of Microsoft launching the YouTube of Xbox Live, Xbox Live Community Games, later this year is whether or not these games will be free to download and play. Today, Microsoft has answered that question by detailing its business model for Community Games.

First of all, the developers will have no choice but to offer their titles at one of three suggested preset retail price points - 200, 400, or 800 Microsoft Points. To get to this stage, the user-created games first have to be submitted by XNA Creators Club Premium members, followed by a strict peer-review system which finally decides whether a game is appropriate to be made available on the service. Once a game has launched on Community Games, the developer will receive up to 70 percent of the total revenue generated by the game, depending on its success.

Chief Technology Officer of Microsoft’s IEBG, Chris Satchell said a few words about the potential of this move:

“Not only are we democratizing game development with Xbox LIVE Community Games later this year, but we’re creating an opportunity for aspiring developers to start their careers on the world stage. It is really a win for both developers and consumers because this will no doubt act as an incentive for game creators to continue to develop the best, most innovative games for Xbox 360.”

Xbox Live Community Games is set to release this holiday season as part of the New Xbox Experience in the United States, Canada, and select European countries. Other regions are said to follow over the course of 2009 and beyond. Also revealed was that Xbox Live users will be able to view and rate community games on Xbox.com, as well as watch trailers and play a trial of each game.

Let us know what you think of Microsoft’s business plans for Community Games in the comments below.

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14 comments on 'Xbox Live Community Games business model detailed'

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Comment by H34RT 4TT4CK on 2008-07-22 23:28:59 | Reply

70%? that’s a good deal considering.

I lost interest in XBLA games but I might go for some of these indie titles.

Comment by ManoDestra on 2008-07-23 01:49:48 | Reply

Excellent. I am a developer and I think I’ll be going for this. This definitely sounds like a reasonable deal. And the prestige of having a game you’ve created on XBox Live is something else.

im actually more interested than ever than getting back to xna programming now that its set , and theirs a release date in sight (this fall)

Bring on the Dishwasher!!!

Comment by tony on 2008-07-23 10:15:51 | Reply

these selected European countries will be UK France and Germany

Comment by Db on 2008-07-23 13:01:10 | Reply

Seems like a good deal to me - 70% to the developer - wish i could make a game and make money doing it.

Comment by Karma on 2008-07-23 17:04:44 | Reply

Read the smallprint folks. It’s 70% but drops by 10-30% if Microsoft decide to “promote” your game.
All Microsoft have to do is “promote” them all through “the new bold live experience” (as mentioned extensively in the FAQ) and you’re actually looking at 40% revenue.
Chances of Microsoft not abusing this system for profit: nil.

Comment by kevgallacher on 2008-07-23 17:37:51 | Reply

That still sounds fair though, if they are promoting the game, the game will probably sell a lot more and therefore make more money.
To take a part of profit for this makes sense and is common for marketing and promotion.

Comment by ManoDestra on 2008-07-24 06:09:33 | Reply

Yeah, and it’s still going to make you look that you managed to get a game developed, tested and published on a well established gaming console. The future’s looking a shade brighter…

Comment by ManoDestra on 2008-07-24 06:10:26 | Reply

Should have read “make you look good that you managed”. My bad.

Comment by Anthony on 2008-07-23 18:35:20 | Reply

WiiWare is a seemingly better choice because Nintendo is not forcing developers to stick to a pre-set price point. Nintendo is allowing developers to choose their own price.

This Xbox Live Community Games is just another way for Microsoft to rake in even more cash from developers and consumers.

Comment by The_Glovner on 2008-07-24 12:45:49 | Reply

And the Wii is just another way to build up your wanking muscles.

So wank off.

Comment by Veritas on 2008-07-25 06:30:22 | Reply

The price points are a fantastic idea if you know anything about how people actually buy these kinds of games. It’s almost entirely impulse. Besides that, amateurs aren’t going to be developing epics. It will be primarily simple games.

The reason most developers would use this is to get themselves known, not to make money. The best strategy would be to make a great game and sell it for the lowest possible price point. Developers get huge exposure and a little bit of cash for their efforts.

I don’t think there’s a need to mention the huge gap in the quality and costs of the respective services.

Comment by ETHAN COLE 1 on 2008-07-28 04:33:07 | Reply

achievments?

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