Can Live Change the Face of the Business?

We saw plenty of cool things at the 11th Electronic Entertainment Expo a few weeks ago. There were tons of great looking titles for all of the current generation of consoles, we got our first looks at the new systems from Sony and Nintendo, and we even got a chance to hang out with some of the ubiquitous booth babes. As the Xbox Live guy, however, nothing was more exciting for me than the chance to get even more up close and personal with the Xbox 360, the upcoming console from Microsoft. The company has proved that they know the ins and outs of online gaming, and they look to extend their reach in the next generation.

At first glance, the features of the new Live service might not seem all that different than the ones offered in the current generation. There are now two tiers of service, Silver and Gold, with the former being offered to gamers for free, right out of the box. The Silver plan allows everyone (remember, it's not just for gamers anymore!) to access the new Live Marketplace, voice chat with friends, and generally get a taste of what Live has to offer. Gold members, on the other hand, will be able to take advantage of everything, with an emphasis on head-to-head or cooperative gaming with friends.


While all of these features are certainly going to help decide the fate of Microsoft's console, none of them are intriguing as some of the other aspects of the service. With the launch of Xbox Live for the 360, we may be seeing a new way for developers to do business. Currently, there aren't a lot of options for developers who want to make a new game for consoles. Games cost a lot of money to create and develop, and it's hard for companies to sink a sizable amount of cash into a game that may or may not be a hit.

When we spoke to J Allard a few weeks ago, he mentioned that Microsoft wants to change the way developers think about creating games. For instance, let's say that Company X has a budget of $100 million per year, with each major game costing $20 million to create. The company might decide to make 3 blockbusters that will almost certainly break even, generally sequels to popular games or titles based on proven intellectual properties. Next, they may choose to sink $20 million into a riskier venture, one that might bring critical acclaim or may bloom into one of the aforementioned proven franchises.