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Game publishers pissed at Sony over PSN 'bandwidth fee' photo

MTV is reporting that third party publishers are seriously unhappy with Sony over its "bandwidth fee," a policy instituted on October 1, 2008, that demands money for every piece of DLC released on the PlayStation Network. Since fall of last year, Sony has claimed 16 cents for every Gigabyte of content downloaded from the PSN, either for the first sixty days in the case of free content like demos, or forever in the case of paid downloads.

Behind a mask of anonymity, three publishers have registered their anger with MTV, biting back at Sony's charge, which comes on top of the usual third party development fees.

"It definitely makes us think about how we view the distribution of content related to our games when it is free for us to do it on the web, on Xbox Live, or any other way -- including broadcast -- than on Sony’s platform," says one of the sources. "It’s a new thing we have to budget. It’s not cool. It sucks."

Of course, this is something consumers ask themselves in reverse. It is free to game on the web, or via PSN, but they pay to do it on Xbox Live. It's a very "swings and roundabouts" situation.

Sony itself has brushed off this thorny issue, claiming to foresee no change to the quality or quantity of its online content. So far, it would seem that this fee isn't driving away publishers, but as purse strings continue to tighten, could we see a full-scale backlash? After all, it's been pointed out that the Resident Evil 5 demo -- a free piece of content -- was downloaded over four million times across the Xbox 360 and PS3. A huge and popular demo effectively causes a publisher to piss money down the drain.

Another source called the fee "an unwanted burden," and is worried that the subtle nature of the charge could take publishers by surprise when it's time to pay Sony, "Like leaving your phone off the hook for a long distance call. The meter is still running."

This looks rather insidious on the part of Sony, and could really start to have a negative impact on the company if this economic climate gets worse. While consumers will appreciate Sony transferring the costs of running PSN to the publishers instead of themselves, those same consumers are now at risk of having a free service with much less on it.

We'll have to see how it goes. Right now, it would seem that at least the bigger publishers find the PSN's download fees to be a worthwhile investment. It'll be interesting to see if they continue to think that way in the future.


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42 comments | showing # 1 to 42

TheStripe's Avatar - Comment posted on 03/20/2009 20:42
TheStripe
Hmm, publishers have no qualms about dlc on xbl. Maybe because users pay a small fee for bandwidth?
bluexy's Avatar - Comment posted on 03/20/2009 20:43
bluexy
That sounds pretty redonkulous. Like a store charging products for being placed on the shelf.
Josh Tolentino's Avatar - Comment posted on 03/20/2009 20:46
Josh Tolentino
While I doubt they'd take my advice, I think Sony should bite the bullet and cut off or at least lessen the bandwidth fees for PSN content. The fact alone that the PSN has so many weird and amazing games on it is a great selling point. Even if they don't drop the price point of the console itself, I'd hate to see the network that owns Noby Noby BOY, Siren: Blood Curse, the PixelJunk titles, and a bunch of other things piss that uniqueness away.

Furthermore, the PSN has a lot of full-size games re-released out there, from PS1 classics to Burnout Paradise and Warhawk, two games I bought AGAIN on the PSN for the convenience of being able to call them up on a whim.

What about the video content as well?
InfraredChimera's Avatar - Comment posted on 03/20/2009 20:48
InfraredChimera
I wonder what 3 publishers that are bitching?
Dexter345's Avatar - Comment posted on 03/20/2009 21:05
Dexter345
Somebody's gotta pay for it. Makes sense that if it's not us, it's the publishers.
Chronic Logic's Avatar - Comment posted on 03/20/2009 21:12
Chronic Logic
16 cents per gig? So if a million people download 1 gig of something on PSN, the publishers will have to pay 160,000 dollars? I don't know...that sounds a bit harsh, but somebody's got to foot the cost, Sony should at least help with the cost though since that does seem quite alot if a lot of people begin downloading it.
Jim Sterling's Avatar - Comment posted on 03/20/2009 21:16
Jim Sterling
Dexter345:

You're right, somebody does have to pay, and in the short term, it's obvious that we as consumers would prefer others to foot the bill. However, we could lose out if publishers decided they're sick of paying out and pull content from the PSN.

Ultimately, the consumers are the ones destined to lose out either way.
aaronf's Avatar - Comment posted on 03/20/2009 21:20
aaronf
Being in the bandwidth business myself, I can say that it is most definitely not free. Someone has to pay for it, be it Sony, us, or the publishers. Sony is bleeding money, free PSN is one of the selling points of the PS3, so I guess Sony decided to stick it to the publishers. I guess only time will tell what this decision will mean for the quality and quantity of PSN content. Although, I personally don't think it will make much of a difference.
CelicaCrazed's Avatar - Comment posted on 03/20/2009 21:21
CelicaCrazed
AHAHAHA!!! The hypocrisy is delicious!! They just sit there smugly charging us $5 for costume/map/track packs, when they bitch and moan over 16 cents/G!! Well, this is all assuming that this is Activision complaining.

This definitely must be some tiny devs complaining since 5 million 1gig downloads will work out to $800,000. Can't be good for the indie developers either.
DinnertimeNinja's Avatar - Comment posted on 03/20/2009 21:33
DinnertimeNinja
Yes, 1 million 1 gig downloads would cost $160,000, but at $10 a pop for a DL game, that's $160,000 out of the $10 MILLION in total transaction money. Doesn't seem all THAT bad in context for games.

Where this really seems unfair is with game demos. Most game demos clock in around a gig and many get hundreds of thousands of downloads and this would cost publishers hundreds of thousands of dollars.

Maybe Sony could institute some sort of exception for game demos because demos for games people want should only HELP sell more of the games and sell more systems in the long run.

Who really gets screwed here is the little developers who are releasing quirky fun games on the PSN and physically NEED a demo out there to get the word out that their game is fun.
Black Nexus's Avatar - Comment posted on 03/20/2009 21:59
Black Nexus
what dinnertimeninja said.
bluexy's Avatar - Comment posted on 03/20/2009 22:14
bluexy
While it's easy to say that xbox live doesn't have a similar tax, there's another thing to consider. I've read quite a few bits of news about developers WANTING their extra content to be free, but are charging because xbox live is requiring them to in order to pay bandwidth fees.

What needs to be considered is how much Sony is taking from each sale on the Playstation store, along with the charge to the devs for each download. Perhaps it's comparable to what Microsoft is already charging.
Drach's Avatar - Comment posted on 03/20/2009 22:17
Drach
Pay attention to the news source. MTV has a game studio. They went to their OWN news source to complain about how they're losing SO MUCH money, and they got the publicity for FREE.

I think this may have something to do with the music industry being mad that people buy their songs, yet they don't get any money for it once it's sold off to MTV (or whoever publishes the game).

Corporate Big Wig wants YOU to pay for the bandwidth, rather than taking a small percentage of their profits and making games better, they're going to flush all of YOU gamers down the toilet, and try to make YOU pay for the gallon of water it takes to ease you down the sewer pipe. Like MTV can't pay $160,000 to Sony. They don't have any money, Right? F$%&ING Bull$%&T. They have enough money to foot the bill. And they're telling you this on their OWN news source.. Free publicity once again. They're all about getting free shit from their own network, but once the fans get a taste of something free, they want to cry about it, and make YOU float the bill.

seriously, people when you buy Guitar Hero and Rock band games this just encourages them to rip you off even more. I hate games like this.

What would MTV gain buy running such a story?

Damn, I hate them.. Ever since they took something unique from my generation and turned it into a steaming pile of shit.
ran24's Avatar - Comment posted on 03/20/2009 22:18
ran24
The bandwith charge for DLC makes sense, but the demo bandwidth charge is rather slimy.
brainderailment's Avatar - Comment posted on 03/20/2009 22:21
brainderailment
I don't know these publishers and I don't know the ins and outs of PSN. I would assume that you could greatly reduce that sting by working the demos down to a smaller size. Ex. The RE5 demo was twice as large on PSN as it was on XBL.
Less data per download = less money flying out the window.
Joe Burling's Avatar - Comment posted on 03/20/2009 22:24
Joe Burling
MS does allow free content. We've seen it multiple times. The most recent that come to mind are the new L4D DLC and FEAR 2 DLC.

Most people remember when Epic complained that they couldn't release the Gears map packs for free. The reason for that is because Epic and MS signed an exclusivity contract that required Epic to charge for the maps. The funds MS made from that DLC helped fun the exclusivity of the game.
Joe Burling's Avatar - Comment posted on 03/20/2009 22:29
Joe Burling
@Drach,

I absolutely love the Rock Band DLC. ...or would you rather keep buying new $60 games every year and only get a handful of songs you actually want out of the disc?
ParaParaKing's Avatar - Comment posted on 03/20/2009 22:29
ParaParaKing
I don't see where the problem is. Sony is charging the companies, who should be paying for their advertisements via demos in the first place, and not the users like Microsoft does.
16 cents per GB isn't exactly that much money considering normal marketing budgets. Of course everybody would love to get everything for free, but that's not how it works in this world.
bluexy's Avatar - Comment posted on 03/20/2009 22:46
bluexy
Here's a good example from just a few weeks ago, Unreal Tournament's Titan Pack. PS3 and PC both have it now, but the 360 won't be getting it unless shrinks it down. Some speculated that Microsoft wanted to charge to recoup bandwidth expenses, the official word is that it didn't meet Live's patch requirements. Either way, both systems have their ways to make ends meet.
AgentMOO's Avatar - Comment posted on 03/20/2009 23:03
AgentMOO
What are you all complaining about? It costs a lot to keep these servers running and Sony is keeping PSN free for the consumer by doing this.

Demos are a marketing cost - development, QA, and distribution. It would be foolish not to charge for that bandwidth as well, when a popular game releases a demo it can cripple the bandwidth for the entire network if Sony hasn't invested in the infrastructure to support it.
SamBasinger's Avatar - Comment posted on 03/20/2009 23:21
SamBasinger
I guess that's why the PSN doesn't get nearly as many demos as the 360.
Drach's Avatar - Comment posted on 03/20/2009 23:40
Drach
Actually, I'd rather play games like Super Stardust, Bionic Commando: Rearmed, and pixel junk:Eden. You spend $60 on a disc for a music game it should have at least 60 tracks. That's how much it would basically cost to buy them on iTunes (or whichever service you could legitimately buy these songs) to just listen to them. There's a TON of games out there that take your music and change them into a similar "press the coloured buttons in sequence" game that don't carry that huge price tag. And we haven't even included getting the weird drum pads and fisher price guitar.

I read the MTV article finally, and someone's playing dirty. They aren't revealing exactly who's complaining about it.. But I can't help but wonder if it's the guys associated with MTV Multiplayer (it IS their site, right?).

I like the free network. demos are pretty much market research to see how a game could potentially sell. It's an advertisement, in other words. Why should you and I (the customer) pay for their advertisements like they make you do with the 360?

I started getting mad at Sony before reading this line:
"“Appreciate the opportunity to jump in here, but we respect the confidentiality of our business agreements with our publishing partners,” Sony Computer Entertainment of America spokesman Patrick Seybold said in an e-mailed statement to MTV"

maybe I'm just paranoid... But it seems that Sony is looking out for the gamers by not making us pay for other people shoving advertisements on my screen every time I boot the device. I REALLY appreciate how clean the PS3's OS looks when compared to the 360's (in terms of the only advert I get is a little scrolling bar in the upper right).
Steve Cebu's Avatar - Comment posted on 03/20/2009 23:43
Steve Cebu
When you consider the cost of releasing DLC versus store based Discs in a package. DLC is still far cheaper and more profitable. Less initial cash outlay which is good for independants.
sheppy's Avatar - Comment posted on 03/20/2009 23:44
sheppy
It sucks but Sony has to make money. Granted it SHOULD be cheaper since real broadband costs are about $.03 cents if I recall. I do like how people think bandwidth is free on PC though and wonder why betas get FilePlanet exclusive releases...

The only question is if the sales of expansions can make up for the bandwidth cost. Especially for somethign like Burnout that's been handing out content like candy.
Magesx's Avatar - Comment posted on 03/20/2009 23:55
Magesx
I was going to say "this must be why the GH: Metallica demo is only coming to the XBLA", but then I realized Actiblizzion would have no trouble at all fronting a bandwidth bill. Cheap bastards.
mrplow8's Avatar - Comment posted on 03/21/2009 00:41
mrplow8
That's funny. Sony nickel and dimes the companies who try to nickel and dime everyone else.
BlackFreefall's Avatar - Comment posted on 03/21/2009 00:50
BlackFreefall
Nothing is free in this world. Maybe Sony should start charging the consumers and follow the 360 method. Before they can do so, they must make sure their online components is as robust as Live.
DinnertimeNinja's Avatar - Comment posted on 03/21/2009 01:23
DinnertimeNinja
@Drach

You can even get rid of the scrolling bar if you like. Just turn it off the "Information Board."
Drach's Avatar - Comment posted on 03/21/2009 04:07
Drach
I know that. I was just pointing out that my screen isn't filled to the brim with ads for crap they want me to buy... That's a nice added bonus.
Emrah's Avatar - Comment posted on 03/21/2009 04:11
Emrah
This means less and less free DLC, e.g., when did we actually stop seeing free Burnout DLC? Does it coincide with the start of this policy?

Titan pack was luckily exclusive to PS3 in the console realm, so it might have saved its bandwidth cost. But we may have to forget free DLC and we may see slightly increased game prices, along with less demos. I'd rather Sony has gone with unobtrusive advertisement and sponsored downloads instead of charging for downloads.
RedbrickBike's Avatar - Comment posted on 03/21/2009 05:04
RedbrickBike
Developers...Make a good enough game. People will buy it. You make money. If you make a crap game and then begin a massive hard sell marketing campaign, it should cost you a fortune. Games like Resident Evil 5 do not need a demo, everyone who knew about it was going to buy it anyway. Ironically I was going to until I played the demo.
BattyAdroit's Avatar - Comment posted on 03/21/2009 05:37
BattyAdroit
ParaParaKing and AgentMOO's responses are 100% correct.

I'd rather have publishers foot the bill for their own advertising costs, instead of passing it on directly to the consumer.

This pretty much seems like non-news.
koehler83's Avatar - Comment posted on 03/21/2009 06:05
koehler83
Sooo.. MTV is plural now?
de BLOO's Avatar - Comment posted on 03/21/2009 07:26
de BLOO
I thought This was happening back in October already??? maybe im wrong.

Now developers might think twice before releasing demos or free content... which wont let people try out the game to see if they like it or not, which could hurt.

I think the holiday season will show the impact this year.
Cynical Gamer's Avatar - Comment posted on 03/21/2009 07:31
Cynical Gamer
Haha so much for PSN being "free". Free for gamers but fuck developers LOL!
iNerd's Avatar - Comment posted on 03/21/2009 08:56
iNerd
This seems far more reasonable than Microsofts bullshit charging for Xbox live. The publishers may whine but frankly they have to pay for the bandwidth out of an overwhelmingly larger free for a game. if you're charging Ł10 for a game you can afford to spend a little on demos to hook in potential customers.
B-Radicate's Avatar - Comment posted on 03/21/2009 09:12
B-Radicate
I could almost understand it if A) it was the only money Sony took from the developers for their content or B) if it was only for paid content.

As it stands, that's pretty stupid.
UnnDunn's Avatar - Comment posted on 03/21/2009 09:25
UnnDunn
@bluexy:

"That sounds pretty redonkulous. Like a store charging products for being placed on the shelf."

Supermarkets do that all the time; it's a core part of their business model. Shelf space is real-estate, and sold as such.
loki d20's Avatar - Comment posted on 03/21/2009 09:52
loki d20
People do know this is only for items over 1GB in size, right? The mass majority of DLC is not charged.
loki d20's Avatar - Comment posted on 03/21/2009 09:54
loki d20
Bah, ignore me.
GohanGVO's Avatar - Comment posted on 03/21/2009 22:59
GohanGVO
@Drach

The reporter of the story, Stephen Totilo, is one of the few actual journalists in the gaming industry. The guy is on the straight and narrow, and I have confidence in him and his abilities. Thus, I HIGHLY doubt that he would shill for another entity within the broader company that employs him.

Anonymity is common in reporting when the person "blowing the whistle" could be fired, sued, etc. for revealing that type of information.
JustLikeBuck's Avatar - Comment posted on 03/23/2009 04:37
JustLikeBuck
16cents per Gigabyte?

Effin Lame! Why are they putting up with such extortionate fees! 15c maybe, but 16?!! F**k that!

Bloody whiners. They put stuff on a third party server, and what? want it to be free?

If they don't pay it, do we have to start paying for it? This is like the music industry pulling all their music videos from youtube because they couldn't agree on a suitably greedy compromise.
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