A few exerpts: (interview with Greg C. who heads the Live Arcade division)
more here:
http://www.1up.com/do/newsStory?cId=3154621
1UP: Who sets the pricing structure for Marketplace stuff. For a game like Lumines Live, who decided to push the product this way?
Greg Canessa: That's actually done by the developer. As a platform, we provide a list of available price tiers. And we work very closely, of course, with the developer. We provide suggestions and it is a consultation between the two companies, but ultimately it is up to the developer to set the price.
1UP: Are you guys concerned about the Wild, Wild West attitude on the Marketplace right now? If something's priced in a way that people can look at it as too high, the ultimate onus of responsibility falls on you guys -- Microsoft takes the blame for it. People don't go, "Oh, well, Q Entertainment did this." They say, "It's Microsoft's fault."
GC: Well, you know, what we try to do is provide guidance as I mentioned, so Xbox Live Arcade has three available price points right now, 400, 800, and 1200 points. We provide that guidance as a platform to try to guide both the developer toward certain price points and to guide gamers' expectations in terms of what Xbox Live Arcade games should cost. And that obviously benefits everyone so that it's not this open, to your point, Wild, Wild West sort of approach where there's all sorts of available price points. There is a broader range of price points available for Xbox Live Marketplace in terms of those types of contents, although there are price tiers and pricing recommendations for certain types of content. So, for instance, gamer pics and themes are one of a couple of different available price points, whereas premium downloadable content is really that sort of add-on content for your retail games and for your arcade games; that's sort of the broadest range.
Because it really depends on sort of what the experience is, right? If it's a level, it's sort of, "OK, it's not that big; alright, we can charge maybe this for it," versus a more extensive update is worth maybe a little higher price.
To your point, it really is a partnership and this is a new business. As we've talked about before, as you guys have written about before, this is a new space. And we're still trying to feel our way through -- the development and publishing community's trying to figure out what things cost and what's a good price point for what.
It's unfortunate that some people just sort of take the approach of, "oh, blame Microsoft first for everything;" that's not really constructive. Really what we're hoping is that people will take a look at what we're trying to do and we're trying to price things -- and the developers are trying to price things for what they think is a good price point for the development investment they've put into this content. Remember, this stuff costs money to make. And we're sort of working our way through it. The gamers, as a whole, have reacted extremely well to Marketplace and, of course, Arcade. You know about Arcade, but, you know, for Marketplace, we have over 1,500 pieces of content in Marketplace; we have over 70 million downloads. Clearly, there is a lot of stuff that's resonating with gamers. I know there's some people that are frustrated from time to time about a particular piece of add-on content, but, on balance, the market has voted with their feet and they love the thing. So, you know, I'm pretty optimistic about it. And if there are kinks, we'll work out the kinks.
more here:
http://www.1up.com/do/newsStory?cId=3154621