
When you were putting up the story at 2AM, were you expecting such a negative response from fans?
Major Nelson: Well, I found out about it late last night, before I posted it. I looked at it and said "okay." But you have to remember, I used to work in the broadcasting industry and in music for a long time and I know that content is not linear. It's not like you go to iTunes, and you're buying the same thing. There's testing that's involved, and there's also licensing involved. There's a lot of elements involved. When there's music involved, that brings up a lot of licensing issues. [pointing at camera] Kids, if you want to make a lot of money, write music. Write the hits, I should say ... It's roughly about $2 a song that you can play over and over. You can't get interactivity with a song on iTunes, and I don't want to defend it: it is what it is.

MN: We worked with Red Octane to work on prices that make sense, and they clearly can't sell it at a loss. They have to pay the rights licensing.
But weren't the development costs already taken care of for the PS2 version?
MN: But you can't look at it that way, it's a different platform. You have to consider the Leaderboard. People like to say it's the same, but the licensing is not the same. You have to re-license it. It's a different platform. While on the surface it may look fairly simplistic, and people are saying "XYZ should be done," but we're not Red Octane. I work for Microsoft, and we're just the conduit at this point.

One commenter pointed out that if all the old songs of the original PlayStation 2 version were released on Xbox Live, it would cost significantly more than simply buying both Guitar Hero and Guitar Hero II on the PS2. People feel flustered by that. Why are we paying more for old content?
MN: Once again, it's not old content. The contracts have to be renegotiated on a new platform, and it's also involving digital distribution, so there's a lot of things involved.
So what about Red Octane? Are they coming to you, saying the game's been out for a week--time to bring out new content?
MN: Well, Red Octane listens to what their customers want. I can't speak on behalf of them, unfortunately. I do know that they have some really aggressive plans to release more content. I don't know what their pricing schedule's going to be. I just don't know. I do know that they've made comments in the past, saying they want to release more content.

Microsoft has always said it's the gamer's choice, especially when it comes to things like the HD-DVD drive, and the hard drive. Why is it that we're forced to download three songs at once? To get a Bad Religion song, we have to get Red Hot Chili Peppers as well. Isn't this actually taking away the choice from gamers?
MN: We've talked about what it takes to get content onto Marketplace. You guys know: it has to be processed, it has to be developed. Is it easier to process one song and release it and would have it to be more expensive? Or can you take some of that development, bundle it together, and drop the price down. All those songs have to go through that process. If you have three songs entering the approval process, individually, that's three times more problems--and there's more probability for error. So, let's bundle them together, and test them as a unit and drive the price down.
So let's say we're in a fantasy world. How much would an individual song cost?
MN: Once again, I can't comment because I'm not making those individual deals.

Let's talk about the upcoming Spring Update. These updates are very different from Sony's approach, which come on a much more frequent basis.
MN: Well, let me ask you, which approach do you like better? [Discussion ensues.] At Microsoft, we deal very strongly with publishers. Because of the way we integrate with the games, we have to let our publishers know what updates are coming, 6 or 7 months before, so they can work them into the games. Our experience is so tied into what you're doing in the game. Your Friends List is always there, regardless of what game you play. So, it's a lot of work we have to do with our publishers, so that they can integrate what we're doing in a really holistic fashion.
The competition between PS3 and Xbox 360 has been great for gamers. One of the more significant upgrades coming up in the Spring Update is support for MPEG-4 and h.264, something Sony has been touting for a long time.
MN: Yeah, we want to take the best feedback and see what are the things that we can do. I don't want to say easy but will make the most impact. One of things people have been begging for is multi-party chat. We're working on a couple of things, and we know there are a certain things that people want and that's what we're going to do. Sony and Microsoft take very different approaches. Ours is a lot more predictable--you know there's going to be an update in the Spring, in the Fall. We have an ongoing conversation with our audience.

The other big topic on people's minds is Halo 3. The public beta is coming out May 16th.
MN: Once again, I hate doing this. But, Bungie's doing their own thing--they do not tell me anything. We're just a partner in crime. They tell us what they're doing, and we make sure we can provide from the Live service perspective. It's their product, they create the rules for their product. They're running the beta, they're running everything.
Some fans have been complaining that three weeks is just too short for a beta.
MN: Well, I guess I hate to be a cop-out, but I'd say "go ask Bungie." If I were them, I would that three weeks is plenty of time to run a beta. I don't even know when their release is. They have to have enough time to take all that feedback and get it into the final product.

Will Xbox Live be able to handle the beta? Can you promise us that it won't break on us?
MN: I've been told by our Operations Director that we've built out--that we're good to go.
Many have been saying that out of the big guys out there, it appears that Microsoft has the biggest involvement with the community.
MN: Xbox Live is a living, breathing environment with over 6 million people on it. It's like the dial tone. You pick it up and there's always something going on. That's one of the reasons why I exist. We really wanted a dialogue with the community and go out and meet people like yourselves. To talk to the people that are reading this--you guys have some really great ideas. We take that feedback, and we love the excitement around the product. The ladies and gentlemen that work on the product love the product. Everybody loves this product. We want to make it the very best. I'm thrilled that Sony's coming out with new ideas that's going to cause us to think in different ways.

We've talked Sony, we've talked Microsoft. You own a Wii yet?
MN: Yeah, I have a Wii. I got a Wii probably about two, three months ago. I happened to be at Target one day, and the gentleman I was talking to said "I can't help you right now, we're unloading the truck right now." I was asking him for something else for my wife but I asked him, "You don't have any Wiis there did you?" He said yeah, and I said "one please." So, my wife and I play it every week. We play bowling. My wife absolutely loves Wii Play. She absolutely loves it.
Do you have a Mii? Does it look like you?
MN: She made it for me, and it does sort of look like me, but it's not public yet. There's no mini-Major Nelsons floating around. I'm really excited to see what the first party titles are going to look like. Some of the third-party titles I've seen so far haven't really grabbed me.
At that point, the music started booming loudly as the Guitar Hero event was about to begin. Thanks to the Major for taking time to speak with us and don't forget to check out Major Nelson's official blog at www.majornelson.com. Additional reporting provided by Andrew Melnizek.
Also: Uncensored, unedited version of the interview can be viewed at GameTrailers.











(Page 1) Reader Comments
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He gets a bad rep at time simply because at times he's really stuck between a rock and a hard place(ie Gamers and the Official XBox Line).
His is the only web show I listen to on a constant basis.
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On the other hand, if the songs are some how miraculously released at a reasonable price then we know it was a simple case of being too greedy and they came to their senses. Only time will tell...
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For example on the 360, lets take DDR.
The 70+ songs are the originals for one, not covers, though one can debate on a remix. The game even has the videos of some songs. They have 10 songs on the marketplace and prices as...
1 Song = 100 points
10 songs - 800 points (20% Discount)
Now I don't know if these songs have been in the XBox, PS2 versions as I didn't look them up. But how is it that Konami can release a song at a 100 points and in it's full digital format and yet Red Octane can't for a cover band?
Either somone is doing some bad negotiating or they are giving us a line of BS.
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Comparing pricing to Guitar Hero 2 is even better. Assuming you take out a paltry $20 for the controller, you're paying $70 for over 70 songs on the game disc. That's $1 for one song, with all the leaderboards/coop crap intact.
It's lucky for gamers that they missed the mark by so much. Had it been only $1.80 per song, people might've swallowed it anyway.
Apple can get away with blaming the recording industry because the recording industry really *is* shafting them. This is an entirely different matter.
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People have pointed out that if you were to repurchase all the songs that come on Guitar Hero 1 (which would cost like $50 to buy the game), you end up spending somewhere around $90. That's almost double.
The licensing, testing, etc were somehow paid for at the $50 price, along with the development and PHYSICAL distribution of the fricking game.
Face it, you're being screwed over. And this guy is paid to go out and calm you over so that you just put up with it. Luckily, his job is pretty easy when his audience is a bunch of easy push-overs.
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Go ahead and be the guy that actually purchases the ripoff songs. I think you're mistaken about the number of people that are willing to pay this price. If I have a choice of rocking out with a buddy for 4 minutes, or drinking 3 mores beers each, I know what I'll do. I'll just play the songs on Frets on Fire for free until they're released for a reasonable price. Thanks RedOctane and MS for making the GHII guitar compatible with Windows!
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It's not about boycotting Red Octane or the Marketplace. It's about not paying more for something than it's worth. If you don't mind the price or Major Nelson's explanation somehow makes the pack more valuable to you then go right ahead and buy it. But if you do think it's too expensive, don't cave in and just buy because you want it... You need to exercise a little self control.
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All they had to do for this version is create a second player line for co-op play (which should have been very easy at this point), build a Leaderboard, and relicense the songs. You cannot tell me that this resulted in a near 100% increase in price and have me believe it.
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I'll just stick with my PS2 version until they release a disc that has them all for a reasonable price.
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A++++++++++++++++++++++++++++++++++++++ WOULD INTERVIEW AGAIN
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(Political tangent: Dear Maryland, this is why we have the electoral college. Please quit trying to fuck things up)
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100 MSP's per song MAX.
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Yeah, he seems like a nice guy... but regarding the Guitar Hero thing... there is NO WAY is costs nearly that much to put those songs out. Those songs have already been released, no way the negotiations for the songs would be difficult at all. They already had the songs, they just needed to port it over. As stated, if they can get 70 songs or whatever on a game, then had development costs for the game, and distribution... yeah... I bet they need to charge that much per song.
He seemed like a nice guy, and I don't blame him for what he said... its not like hes gonna say "Yeah, MS and red Octane are screwing you" hed be fired in a second... He did exactly what hes paid to do, tell you what you want to hear, and appeal to the crowds.
A+ for him. Congrats for everyone taking the news so well and making him look like a hero, you probably just got him a raise (PS, now that he has a raise, the next downloads will cost even more)
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Looks like somebody has been in suspended animation for awhile.
do you have any fucking idea how tight the music industry is about their music? If they could make you pay for every fucking note you played and then charge you every time you mention the song they would. Licensing music is a total and complete BITCH.
That part of his response is probably 100 percent true. They probably have to licence every song differently depending on it's use.
I was bitching about the price yesterday, and I still think it's rape, but after hearing that, I'd have to say I'm not suprised.
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Now, the music execs know that the game is a golden goose. They're going to squeeze it as hard as they can. These guys recognize that there's a strong demand for the songs, and can bring that leverage to the negotiating table.
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I laugh at this causing any effect on the cost. Some basic server somewhere stores a few bytes of data for each song, and then stores some more bytes for just a week.
Go rent a basic web server for a month, host CS:Source, and run a basic stat gathering mod. Done deal. Didn't cost me tens of thousands of dollars.
I don't even think people need to actively boycott this, I'm sure tons of people just flat out won't buy these packs just because they're a bad deal. If we were boycotting this, it would mean that it was a good deal, but we disagreed with the principal.
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This is a RIP OFF plain and simple, now he has his "Marketing Team" covering up his BS with crap like:
8. He's a cool guy. Neither Nintendo or Sony has that kind of connection to the gamers.
by: LongshotX
Give me a break. What happened to we wouldn't pay for things you can find on other console for FREE.
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I just don't buy it, especially when it's a download service. Whomever fault this is, greed is definitely to blame, no question.
And Joystiq, come on. You gotta be asking more ballsy questions. Oh well, there's still the Red Octane interview.
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If we know that between licensing, development and approval it's costing them $1.85 per song downloaded, then we're likely to be far more accepting of the price.
I understand the chances of them revealing the financial terms of their licensing arrangements are slim to none - but even ballpark figures would go a long way to remedy the idea that the DLC is simply a money grab.
If you're going to release content at a price point so far above expectations, you need to do a really good job of explaining both the value of the content relative to the price AND the cost issues which are forcing the price so high.
An inability to do this is what has been destroying the PS3's sales thus far - and we're seeing MS/RedOctane fall into the same trap.
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Why don't you stop complaining about people complaining?
Heads up: Nobody is forcing you to read the comments, not to mention try and police people's opinions.
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Good dude.
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If they are unable to sell much at that price, perhaps they can work things out to bring it down. I sure as hell won't buy at that price. It is essentially $6 for a song I love, a song that is okay, and one crapfest.
People in these threads are assuming they can just say "I call BS, $1 per song is how it should go" and think that has some kind of validity. You have absolutely no idea how the financial structure and licensing is worked out for them.
Perhaps they think only a small percentage of "hardcores" will buy extra content at any price, so they are charging high to cover their stuff.
The only thing we actually know is that Red Octane wants to make the most money possible. They think they can make more selling a $6 3 song bundle than wide open $1 a song. Deal with it. You aren't being "screwed" if you don't buy it.
I would honestly be fine with buying my 4 or 5 favorite songs at $2 a piece. But I refuse to pay $6 for one song I really like, one okay song, and a crapfest.
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I really, really want Cowboys from Hell when it comes out, but I will not pay at this crap pricing.
"Fool me once, shame on — shame on you. Fool me — you can't get fooled again."
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Hell yea buddy. I been practicing Decadence Dance by Extreme on my Ibanez GRX20. I try to play More Than Words on my acoustic but its hard to get it to sound right.
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I'm pretty irritated over the pricing...but "NO WAY"? I'm sorry, have you heard of the RIAA? The 'R' doesn't stand for Reasonable or Rights, just so you know. And DRM doesn't stand for 'DUDE! Radical Music!', either.
Online distribution is a BIG DEAL to the RIAA and the big music companies. Pretending otherwise is just naive. If you don't think they had to totally renegotiate these contracts for the GH I songs, I think you're wearing blinders.
Now, if these songs were to appear on the PS3 with a significantly lower price...well, that's another story. Of course, the other issue is that the PS2 version has sold over 1.3 million copies to a potential market of 115 million or so. With a market share that's 10x LESS, the economies of scale (and profitability) aren't going to potentially be the same.
Let's be honest...it's highly unlikely that 1 in every 6 XBL users will even purchase the game, let alone the packs.
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When it comes to relicensing fees for material, let's look at it this way; the first Guitar Hero made a load of money. As a song publisher you look at how much you got paid for the songs being used, and then look at how much the company using said songs made. When they come back around (there's really only two or three music publishing companies out there) would you offer the same fees as before?
As for DDR, unless Konami owns the rights to all of those songs, then that argument is moot. If they do own all of those songs, then they can sell them for whatever they choose. If they have to get licensed granted again, then they have to factor that cost.
Not all songs are licensed for the same amount. Why would Red Hot Chili Peppers charge someone the same amount as "No Name Local Emo Band Name" would?
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