THQ embraces digital content distribution

THQ has announced its intention to generate additional revenue from the provision of downloadable content on next-generation consoles, beginning with its current offerings on Microsoft's Xbox 360.

The company is scheduled to launch its WWII action game The Outfit on Friday, which includes a substantial multiplayer element designed to take advantage of the Xbox 360's online gaming service, Xbox Live.

THQ provided the first pre-launch multiplayer demo for Microsoft's system at the beginning of last week, enabling up to eight players to battle it out online without charge, and sample some of the content that will be incorporated in the full retail release.

The game has attracted substantial positive press attention for its online modes, and THQ president and CEO Brian Farrell, speaking at the 2006 Bank of America Securities summit, has stated that the game will be the catalyst for a new revenue stream for the publisher.

Following the commercial release of the game, THQ will offer an additional series of new levels for the game, which will be made available via the Xbox Live Marketplace for a sum of approximately USD 4-7. Farrell further stated that downloadable content would play a significant role in THQ's future revenue opportunities.

THQ will be publishing various owned IP brands on the next-gen console in the coming year, including Saints Row, WWE and the Pixar licensed Cars. It is likely that each of these titles - and future THQ releases - will fall in line with the new strategy of providing exclusive new content online, for a nominal fee.

Microsoft has recently come under fire for releasing game updates via Xbox Live that appear to offer no additional content, but serve instead as means of distribution patches for bugs and glitches that should have been ironed out prior to commercial release. However, the Xbox Live service appears to be thriving, with a vibrant marketplace offering casual game downloads, trailers, demos and themed content for new releases.