Downloadable Content (DLC) โ additional content for a video game that is available digitally.ย DLC may be available prior to the release of the game, as well as after the release of a game. DLC is typically provided by the game publisher, and may or may not have an associated additional cost.ย Video game publishers have used DLC as an additional revenue stream, supplementing the revenue stream provided by sales of the game[1].ย DLC can comprise cosmetics (e.g., Skins), new characters, new tools, new levels, and new game modes.ย In some cases, DLC is bundled as part of a โSeason Passโ for a game[2].ย An example of DLC in the game Fortnite is a Skin.
DLC has become a key part of the video game industry in the last twenty (20) years.ย The Sega Dreamcast (1999) and the Microsoft Xbox (2001) were the first console systems to allow for DLC, but it was mostly free updates to games sold in disc format[3].ย The Microsoft Xbox 360 (2005) was the first console to truly embrace DLC, with the establishment of the โXbox Live Marketplaceโ service[4].ย Sony followed suit with the release of the PlayStation 3 (2006), establishing the โPlayStation Storeโ where users could pay for and download DLC.ย The Nintendo 3DS (2011) saw Nintendo establish the โNintendo eShopโ as its exclusive online marketplace for DLC[5].
Music video games, such as Guitar Hero (2005) and Rock Band (2007), took significant advantage of DLC as a means of offering new songs to be played in-game[6]. ย These games were some of the first to popularize โmicrotransactionsโ โ the concept of purchasing virtual goods with micropayments within a game[7].ย In 2010, the sale of DLC made up around twenty percent (20%) of video games sales[8].ย In 2023, estimates are that more than eighty-five (85%) of total video game industry revenue comes from free-to-play games, indicating that DLC now accounts for the large measure of industry revenue[9].
DLC often comes โprepackagedโ with a game.ย As one example, the โ75th Anniversary Editionโ of NBA 2K22 sold for USD 100.00 and came with the game, as well as various DLC including 100,000 in Virtual Currency (โVCโ), 10,000 MyTeam points (which can be used to obtain player cards and card packs), 22 MyTeam card packs, as well as Kareem Abdul-Jabbar, Dirk Nowitzki, and Kevin Durant virtual cards[10]. Without the DLC, NBA 2K22 retailed for about USD 70.00 on the PlayStation 5 and Xbox Series X|S. ย So, DLC in that case accounted for about USD 30.00 per game in additional revenue.
Where a game on disc may allow its license sold or traded, DLC is generally locked to a specific userโs account, and does not come with the ability to transfer that license to another user[11].
[1] See โFrom Gachapon To Video Game DLC: A Brief History of Loot Boxes, Gambling and the Law,โ Darius C. Gambino, Saul Ewing LLP, Sept. 28, 2022, pp. 2, 9-10 (https://www.saul.com/insights/article/gachapon-video-game-dlc-brief-history-loot-boxes-gambling-and-law).
[2] As an example, the โSeason Passโ within Fortnite is called the โBattle Pass.โย Purchasing the โBattle Passโ typically entitles the player to unique skins, unique weapons, unique vehicles and unique character and vehicle effects.
[3] See โDownloadable Contentโ Wiki (https://en.wikipedia.org/wiki/Downloadable_content).
[4] Id.
[5] Id.
[6] Id.ย Guitar Hero II (2006) was the first in the franchise to offer additional songs for download as DLC.
[7] Id.
[8] Id.
[9] โVideo Game Industry Statistics, Trends and Data In 2023,โ WePC, May 10, 2023 (https://www.wepc.com/news/video-game-statistics/).
[10] See FN 1, supra, pp. 9-10.
[11] See FN 3, supra.
