Halo 5’s Free DLC More Profitable Than It’s Paid DLC

Welcome to episode 91 of the Gamers of the Lost Spark podcast. Another delve into the underbelly of the gaming underworld’s news metaverse examining the stories, rumours and games of the last 7 days.

This week an interesting argument put forward by Michael Pachter (Pachter Factor) makes the point that there is a shift in the DLC model and that instead of DLC being slices of paid for additional goodness for the games we love, that in fact free DLC, apart from being most welcome by the gaming community – who doesn’t love free stuff? – can actually prove to be more profitable than paid DLC.

How can that work? is the resounding retort. Well, Mr Pachter goes on to explain this using 343 Industries Halo 5 as an example of where this model has been a success.

Halo 5 took a different approach to the more standard paid DLC model that we are used to these days. What the guys over at 343 Industries did was to make the first 6 months of DLC for the game free. That’s right, free and many people will know this having played one of the bigger hits over on Xbox One. So that’s fantastic, 6 months free DLC for the Halo 5 community, great move guys, much appreciated. Hold on though, is this just an incredible gesture of goodwill from developer / publisher to the gaming masses? I mean, what’s in it for them? Apart from the love and gratitude of the gamers of course – a commodity more precious than any currency. Oh hold on, yes, of course, back to the real world.

So the game is out there and the first 6 months DLC content is free to all players, yet Halo 5 made more money than any previous Halo game and this was due to the in game microtransactions. What happened in this case was, due to the DLC being free for all, Halo 5 kept more players playing the game than it had ever done before and in doing so, kept a bigger pool of customers enjoying the game who were then potential purchasers of in game microtransactions. The results from 343’s experience with this model indicate that more profit can be made by keeping more players involved in the game and so increasing the pool of potential (and real) microtransaction purchases than charging for separate iterations of DLC content.

Mr Pachter cites an approximate model of DLC purchase trends explaining that with each paid DLC drop there is also a drop in player take up, with the first DLC being the most popular at say 80% take up, the second being picked up with maybe 50% of those guys and the third DLC drop having the lowest purchase rate. It was this trend that paved the way for the ‘Season Pass’ that we have today, as the publishers looked for ways to stop that drop in take up of DLC over time by offering the lot at a discounted price.

This model only works for games that include DLC and have potential for communities to grow and thrive on their platforms. The type of games that are sure to be the focus of Microsoft’s recently announced ‘Games as a Service’ strategy, the most obvious being competitive FPS games like the Halo’s and the Titanfall’s, it would be more difficult to apply to other genres so we will probably not be getting single player campaign DLC for free anytime soon.

All said and done though, it’s an interesting idea that has already been used and turned a greater profit than the more traditional approach. Keeping all those players in there obviously reaps rewards while at the same time keeping those servers nice and busy with more players, in turn making the experience for the gamer more enjoyable for a longer period, potentially creating more fans who will be pre-ordering the next game.

Sound good? Or would you prefer the more traditional model? As always let us know what you think.

There’s also palpable levels of excitement this week in Spark Towers as the guys have got to grips with the brand new ‘orange track of awesomeness‘ racing delight that is the Forza Horizon 3: Hot Wheels expansion.

This addition to the Forza Horizon 3 family just can’t help but put a smile on your face as you race round the most beautiful orange-tastic track you have ever raced on in your official Hot Wheels machine of choice, while that glorious Aussie sunshine beats down in glorious HDR as you hopefully give your competitors a severe beat down of your own.

See the fumes fly as you boost through rings of fire and loop the loop in this genius twist on the Forza Formula. Move over Mario Kart, there’s room for one more.

Here is the first officially licensed LS35X wireless gaming headset from LucidSound. Coming out this year, the company claims the device pairs up with Project Scorpio like an Xbox One controller, meaning no cables are necessary – a Spark dream come true!

The LucidSound headset will also work with all other Xbox One systems, as well as PCs. Though for computers, an Xbox Wireless Adapter will most likely be needed.

Expect more information on these beauties and Project Scorpio in a month’s time at E3.

If you want more information on some of the items in this weeks Podcast here are some handy links:

If you would like to give us a rating or a review on iTunes then we have this handy link for you, click here to jump to iTunes review for the Lost Spark Podcast!

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