THQ Will Take Huge Hit Due to PSN Outage

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Posted May 9th, 2011 at 9:00 am

THQ has put a lot into their pricing experiment that debuts with the release of MX vs ATV Alive tomorrow. The idea has been that releasing a game at a lower entry price (in this case $40) will increase the user base who will then be more likely to spend on expanded downloadable content offerings. Unfortunately for the company they are now bracing for a significant blow to their plans with PSN being out of commission. 

It has almost been three weeks since PSN went down taking with it not just online play but the PSN store as well. Even if PSN were to come back in the coming days Sony has stated the PSN Store won’t follow immediately and may be down until June. That means THQ will be pulling in absolutely no revenue from what could amount to half of their consumers. Needless to say that is severely damaging when the structure they created is meant to rely on the sale of DLC.

THQ will have the 360 side to judge the results on but this still could change the outlook in the near term on DLC reliance. Many believe that digital delivery is the future of gaming, and a great deal of money has already been made from microtransactions, but particularly for PS3 consumers they may very well be less likely to spend in that manner in the future given the recent events and erosion in confidence.

Other companies are certainly taking a hit due to PSN being down as well (think EA Sports losing all Ultimate Team revenue) but none are hurt as much due to the timing or put so much into the reliance on DLC as THQ did in their championing of this experiment in financial meetings and with the press. This could even damage sales of the game considering the lack of online play and ability to download all the features that have been reserved for DLC.

The idea of the lower price point and offering increased DLC options made sense for secondary titles. This isn’t something that would have been considered for their prime WWE or UFC franchises. Still one now wonders how the company will view the idea when it is about to hurt them significantly due to something that is completely out of their control.

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  • Jake

    a lot of developers are really getting screwed by sony

    • Kid_fleetfoot

      a lot of developers are really getting screwed by the hackers

      • http://www.facebook.com/profile.php?id=100000295534671 Jared Baxter

        Sony should have better security.

        • Guest

          Security wouldn’t be needed if there are no hackers.

        • Really

          Because 128 bit encryption isn’t good security. Go blame those degenerate hackers.

          • Moneymayweather

            Anonymous is behind all of this.

      • http://www.facebook.com/profile.php?id=100000295534671 Jared Baxter

        Sony should have better security.

  • Anonymous

    Did they have day one DLC waiting? That’s always insulting when companies do that, even with the lower entry price for this game.

    • Kabbs

      that was the whole idea. they would have a bunch of dlc out right away for people to choose what they wanted

      • Anonymous

        Was it? I know about their price experiment with this game, but haven’t paid close enough attention. I thought the idea was about DLC being released over the lifespan of the game; not releasing DLC alongside the game. In the end, the result is the same, but day one really gives the feeling that they held back to price gouge.

        • Mal

          I think your kind of missing the point, it was an experiment to see if they could strip a game right down and offer the parts they stripped away as purchasable items. If this worked it could see you being able to buy a really cheap game and “if” you choose, purchase just the extra parts you want.

          How far the price could essentially drop, I don’t know, but the idea is sound.

          Technically you can already see some thing similar in games like borderlands – I can purchase the goty edition which includes all the dlc, or I can purchase the original and only buy the dlc packs I want.

          For those people complaining about them trying to sell half a game, if in a few years time, you could buy a brand new game for five or ten dollars (with a host of available dlc at reasonable prices) would you still feel cheated?

  • Def

    don’t sell the people 1/2 a game then THQ , banking on dlc for $$$

  • http://twitter.com/BiblicalNumbers Go In

    good. hope they experience record losses and they all lose their jobs. fuck em

    • Gb

      Its like selling a car with no doors or wheels and hoping you’ll come back the next day and get them …..

  • Skihawks

    I would have to wait and see what content the actual game has and what DLC is available. As much as I love TW 12, it pissed me off that EA included courses in season mode that had to be purchased. I own both consoles but own TW for the PS3 which really screwed me so now I either have to skip events or wait another three weeks for PSN to return. That’s right…I read a minimum of three weeks…Glad I don’t own Black Ops for the PS3…With the new map pack due to release for the PS3 in a few weeks…OUCH!!!!

  • http://profiles.google.com/jimmyridz Jimmy Ridz

    Just like Dead Space 2. I downloaded a DLC made by EA from PSN and it was one of the worst purchases ever. Expensive and little gameplay! Fuck you, EA!

  • http://profiles.google.com/jimmyridz Jimmy Ridz

    Just like Dead Space 2. I downloaded a DLC made by EA from PSN and it was one of the worst purchases ever. Expensive and little gameplay! Fuck you, EA!

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  • CardLover

    Now, I laugh at people who say they will switch (by purchasing) to 360 because of these following reasons.

    1. 360 online is NOT free.
    2. 360 hardware itself is costly.
    3. PS3 is more powerful game console than 360: http://gear.ign.com/articles/111/1116182p1.html
    4. After PSN comes back, you will probably have the (hopefully) best, state-of-art security measure protecting the network AND free gifts

    But the lack of PSN has been seriously annoying me, too. No online for a month is..wow.

  • Lickalotapus420

    As far as Capcom…I feel no sympathy for them. It was their decision to make their games DMR protected, meaning you have to sign into the PSN even if ya only want to play offline. Maybe developers will learn their lesson about requiring gamers to sign in to an online service just to play games offline.

  • OTATOP

    To be honest, I don’t mind the PSN outage. My PS3 was out with the YLOD for 2 months, and I only got it back a month now. But what I’d like to know is why this “Anonymous” wants to F-up Sony.

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