Nick Burton of Rare recently commented on the Xbox Live Arcade business model. XBLA titles don’t really offer extraordinary returns, but they do provide a “small but reasonable†revenue on a constant basis.
When questioned if Jetpac Refuelled was a commercial success, Burton stated, “If you want to measure it in success in that we broke even – we’re in the black, so that’s good.â€
“But Live Arcade games tend to sell for a long period of time… You don’t tend to get the same sales with Live Arcade that you do with an on-shelf product,†he continued.
XBLA sales tend to peak upon their debut, then quickly fall off to a lower, but stable level of sales Burton said.
“There is a tendency to drop down to a few hundred sales a day, and then just stay at that for as long as [XBLA] hosts it. So then you have a guaranteed – small, but still reasonable revenue stream that’s constant.â€