THQ's MX vs. ATV Pricing Experiment A Failure

By DavieMarshall, 7 years ago
THQ were a company with a plan. Develop and release MX vs. ATV: Alive, a strong budget title to capture a rapidly built and far reaching core audience. From there THQ planned to "monetize [the] install base through rapid and large-number of DLC drops".

Unfortunately things didn't work out quite as planned. Brian Farrell, CEO of THQ, noted that initial uptake was fast enough, but quickly stagnated:

The key learning there was that it was not a successful experiment. The $39.99 price point, while good – it gave us good acceleration of sales – just wasn't enough to drive the install base to where we wanted it to be. Obviously the correlary to that, is that on a lower install base, the amount of DLC sales are not what we anticipated.
The title hit store shelves at $39.99 which was the ultimate problem. For a budget title the RRP was a shade too high and Farrell noted that this held sales back, whilst blaming the higher RRP on "high fixed cost of goods in the current console market". In concluding Farrell dubbed THQ's experimentation a 'noble experiment', but I think we can assume this is a strategy that won't be applied again any time soon.