Microsoft's New Xbox Live Arcade Strategy
We examine Microsoft's new focus on independent games and its impact on the growing battle for downloadable games dominance.
Date: Friday, March 07, 2008
Author: Tracy Erickson

Microsoft's Community Games initiative stands as a direct answer to the original games of PlayStation Network. Attention leveled on independent titles like flow and Everyday Shooter starkly contrasts the deluge of arcade classics that continuously join the ranks of Xbox Live Arcade. By opening up a space for one-man shops and small independent studios to debut their work, Microsoft hopes to court these individuals away from Sony. Encouraging developers to conduct business with Microsoft might be difficult though, given reports of a royalty cut for those releasing titles on Xbox Live Arcade. Will this reduced royalty structure apply to independent developers interested in bringing their games to Xbox Live Community? Microsoft wouldn't confirm or deny the report, choosing to comment on the fact that a business model has yet to be determined for Community Games titles. The company needs to move quickly to address concerns and prevent developers from gravitating to Sony's network.

Little Gamers
Little Gamers

Undoubtedly Microsoft has touched upon something exciting with its Community Games push, but the company's next steps will be critical in determining its success. Pricing for gamers wanting to experience these games, royalties for developers making them, and an infrastructure than can handle it all will play huge roles in shaping the initiative. A new day is dawning for XBL and what is clear for Microsoft is the pressure to step up its online game in answer to increasing momentum for PlayStation Network and soon WiiWare.

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