THQ believe that publishers are going to have to explore different revenue models in order to remain competitive in the video games industry, especially with the success of iPhone games and games on PlayStation Network, Xbox Live and WiiWare.
Speaking at the Goldman Sachs Communacopia conference, Brian Farrell, the CEO of THQ, said "When we lower the price to a mass market price the thing really jumps. So what we're doing this time is we're coming out initially with a smaller game at a lower price point "“ the $29 to $39 range.
"We're then doing a download model for different modes, different tracks, different vehicles. It's what we call a hybrid "“ it's a bit of the microtransaction and DLC model. I'm a big believer in monetising under the curve, so we capture that $29 to $39 user no matter what, and a person that wants to spend $100 on the product can do so as well."
To experiment, THQ are making the next MX vs ATV game will be released at a reduced RRP, but will be a much smaller game as a result.