GamesIndustry.biz Newsletter - 14th May 2010

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The phrase "cautious welcome" might have been invented for EA's Project Ten Dollar initiative - a project aimed at discouraging the more egregious abuses of the second-hand market by bundling single-use codes for $10 worth of downloadable content with new games. Unlike previous attacks on the pre-owned trade, Project Ten Dollar is a fairly tightly focused tool. It doesn't prevent anyone from selling their games, and is unlikely to seriously discourage consumers from selling directly to one another - or from buying from heavily discounted second-hand bargain bins, months or years after the original launch.

With the DLC in question for games like Mass Effect 2 and Dragon Age being firmly in the "nice-to-have" rather than "must have" categories, the initiative actually gained some traction among gamers, who understood it to be a gentle but carefully calculated push not against their consumer rights, but against the business models of stores like GameStop and GAME, which often apply huge mark-ups to second-hand product and sell it very slightly cheaper than brand new games.

The negative responses came from predictable quarters, but were no less valid for that. Some people simply don't like DLC, especially DLC that appears at launch - they argue that it should be a part of the game, and that extra monetising at this stage in the life-cycle of the product is a pretty shabby way to treat consumers. It's not a terribly fair viewpoint, ignoring as it does the most basic financial realities of game development (put simply, if there wasn't a way to pay for the development of those features, they'd never have been made at all), but it's widespread and it's understandable.

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Today's top stories

Pressure mounts on E3 to prove industry can grow long-term

10:18 - Investors will be "spooked" by poor April sales; new hardware must demonstrate ability to extend console cycle, say analysts

US game revenues dropped 26% in April

07:46 - Easter period makes comparisons tough; hardware revs down on lower prices; Splinter Cell is best-seller

Konami ends fiscal year with 22% rise in profit

08:55 - Profit up to $143m; revenues slide 15% on previous year

Today's feature

Toll Booth

EA's Project Ten Dollar was a good idea - but it has launched us down a dangerous slippery slope

The rest of today's news

Nintendo files lawsuit against persistent R4 seller

09:33 - New York-based web company accused of selling illegal devices and infringing copyrights

Dragon Quest holds onto top position in Japanese chart

10:31 - PSP heads the hardware chart, closely followed by Wii

Funcom buys stake in new start-up Stunlock Studios

08:46 - Company to publish multiplayer game Bloodline Champions from Swedish developer

SpecialEffect appoints two new VPs

07:51 - Johnny Minkley and Kirsty Payne to help promote, grow and raise funding for videogame charity

Sony Europe announces PSP Essentials budget range

16:31 - Ratchet and Clank, FIFA 09, Wipeout Pulse among 20 games to be sold for £9.99 this summer

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