Web services are a different thing and the business models are still very new and rather unknown expect for revenue on adds. The freemium business model for building initial interest has also come into play - may be in the light of adds revenue.
However, for games or similar, buying adds seem like the way to go. It worked well for docomo that made up the initial pricing when mobile took of in Japan at the begining of this century while Europe stock on the "WAP" spec. Prices in Japan was like a monthly subscription for new content. However in the games its static - you buy i.e. a license to use a scenery and pay once. But the similar thing is, the price has to be low while you go for more selling. The games "app store" is an international market or has the most broad potential.
So how many publishers or syndicators of digital content for one game can there be when digital distribution is inherent to deployment in IT services? Just one point of service, right? So that challenges the whole value chain. However, one way to go could be if some previous distributors will take on the challenge of packaging studio content for distribution.
I still prefer buying professional quality for FSX - we all tried downloading the freeware - I'm thinking aricraft or scenerys now. Some free scenerys are known for having a high quality - i.e. scenery Denmark that is an organized project with several developers on it. The real challange for these developers will be how to share revenue or credit when publishing through the service point. If its just freeware no problem I guess. In terms of certification or software being allowed to be distributed many of those freeware projects are already concerned with original content because of their size - and many developers among them are graphics artists as well - and lately they have also been concerned with professional packaging i.e. deployment - for instance going to msi - although the deployment container may be a bit different in the Windows Live Games concept.
I think Microsoft should be more open towards the development community instead of allowing rumors based of gut feeling to build up right now. But they will come forward in a few days I am sure.
I think it will be ok - and we're all invited on this. The other stuff does not resemble Microsoft - but being scared

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Anyway, considering Prepar3D stuff would be a nice move. Again the business model is great for industrial syndication. It's variable. You pay a very low subscription per month and get access.
The move with Lockheed separated the concerns of the business. Prepar3D will try and open the market towards immersive experiences for avaition professionals and the aviation industry. FSX and previous FS packages were used unlicensed. Some cleaning up to do. And there is nothing like Prepar3D. It's an incredible offer for the industry. Microsoft never manage to open that market. So let's hope Lockheed wil help them discover the potential. There are just about too and many in the business including pilots knows about FS and its value.
With MS Flight its about opening the market towards consumers.
FS was somewhat in between. I.e. I had to add a component for flight data using the SDK in ESP (FSX). It should be there natively for professional use in Prepar3D - so we donøt have to extend the infrastructure, but can focus on writing and configuration of applications.
>>MS will need an SDK even if only for their own in-house modelers/gauge programmers/scenery designers, etc.
Sure.
>>There's a lot of sudden interest in Prepar3D too, but correct me if I'm wrong - isn't L-M licenced by MS to use the code for non-entertainment purposes? So however they might like to develop for the public flightsim market (us) they are constrained to keep to the military, training and educational sectors. MS's lawyers will play hardball if L-M break their licence terms.
It was about open the market towards the aviation industry. Lockheed is already in that market. Lockheed licensed the code base and probably content (i.e. sceneries because those deals are contained inside ESP 1.0?) and some of the developers too I guess. Microsoft receives revenue from Lockheed probably based on sales? It will take time to get it going.
As somebody else wrote the developer license is just 10$/month. When I developed in 2010 for ESP we had to get an MSDN subscription or dev license and pay like 600$ to just download ESP 1.0. And we had too - so we did.
Concerning the license for production use Lockheed halfed the price. Isn't it almost down to $500? With MS the ESP 1.0 license was around $1000.
And the major airline company in Europe we worked for considered that a bargain. The project was around 1.2 million us dollars. Because somebody had spend most of the money of doing the animations themselves i.e. using an Apple render farm there were almost no money left - and what they made were low quality and static compared to the dynamic rendering engine in ESP or FSX. I.e. all the effects could be achieved by configurations and virtualization. So an incredible offer of supreme high value for the aviation industry.
That's also why I don't understand the fuss about Prepar3D or not in this community? It's a nobrainer. You already got the skills. Lockheed is offering a partner program. The catch is it is about doing projects with the aviation industry. BUT THATS FUN. Real use. Real flying. Real requirements. Real money - not just a 1$ download. More like starting around $100.000 if cheap. Not for the software but partipating in working out the quality of the solution. In that case its like system or solution development. In case of Prepar3D it's just a platform of choice. The best stuff in Prepar3D (or for that matter FSX/ESP) is that it is not only the dynamic or virtual rendering of interactions between objects in the environment - but also the multiscreen feature. I hooked up 18 screens using graphics expansion (matrox) to one workstation! Immersive professional avaition experience in Prepar3D. No problem.
Sure hope MS Flight can do that to. Or we can sell immersive consumer experiences using Prepar3D for consumers willing to pay a bit more - i.e. using stick's, throttles, projects etc. meaning ready to invest more anyway. Then lets build a cheaper solution for them.
Why not have some "flying level" in between "MS Flight" (novice/gamers/for fun) and ICON A5 Ultra light (ambitious for real flying - but priced for mr and mrs smith)? That could be a kit halfing the price of coming into ultra light flight - and best of all the maintenance cost is down to zero. You don't have to fly hours to keep your certificate.
We should work as a "studio" to apply our skills in an organized way beyond just meeting up in forums. Think about what happened to the open source development of for instance XBMC. Let's organize a bit more and take full use.
More pocket money may be in fair sharing - but also working more with how the solutions should be packaged. That's already what most of us do. Changing the product quality to what is should have been in different applications, i.e. when flying around Denmark to take that case I know. Also many of those simmers discuss hardware configurations, photorealism and other equipment. And everybody wants a home cockpit.
I wrote that too in the "now removed pages" about MS Flight. The center role is being the pilot. So is it fun to fly "red bull" like activities? Is it fun to fly rescue missions. May be - if it's close to realistic. So that's the primary concern of many coming into this sort of "game" or simulation experience really. I want broad horisontal view and less vertical - or something like a real canopy. May be immersive using VR. I want the sticks and controls. May be MFD with buttons around. I want a home cockpit. I want actuators. I want complete photrealism. I'll buy the hardware I need to run it.
When that's done - and I get bored with flying around - then may be I'll fly a rescue mission.
So thats it. Precedence order:
"Realistic flying first - that's the fun thing". I was a novice once and what made we go FS was the optiions for realism. Nothing else. Missions has always been around including other games. But I could not get realism elsewhere in multiple dimensions: sky, photography, aircraft, handling, traffic and so on.
Second comes "I just want to fly - but flying is not fun, so I want to play a game instead". If so I just start up an existing flying game. There are hundreds. I left them to play FS.
If MS Flight become one of those then may be the guys recruited for new FS was not interested themselves in flying. The strange thing is that MS is promising MS Flight as a cheaper alternative to real flight. But it's just a boring game now? I saw those trailer videos - looks really boring to me.
I had a guy come to my apartment recently. His a skiier, cycler and likes experiences. Experiences sell today. People here have started giving experiences for christmas now fed up with materials. Well he looked at my setup with several screens including MFDs - a scrap prototype setup for my upcoming home cockpit - and said, hey I really want to try that once. He had always though of going into flight sim. When people see those prototype cockpits they know it is possible and not that expensive.
Also take a look at the flight shows and peoples eager to jump into those home made simulators that have started to show using i.e 3 projectors. You can buy projectors for like nothing today. The price of 3 smart phones. And you can scale. Just start with one. A home cokcpit strategy. I really want those actuators for lifting

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If I had an xbox there and just showed him the software and game play. Never mind.
Flying is not about arcade. But experience - including physical experience.
But lets see. Microsoft now claims flying interests start with playing a game including flying and the pilot role. I say not. I say flying interests starts with interests in flying and imagining you can have that at home. What you can potentially do or have changes over time. In 1981 Micropose Flight Smiluator on an x8086 - just looking like a PC was a cockpit to me. Todays standards or state-of-the-art home flying are different. A new MS Flight appealling to the imagination of potential flyers have to capture this magination by state-of-the-art - something including a path to evolve that home cockpit.
That the portrait.
Not a guy having fun sitting in front of the PC or XBox with a joypad in his hands. He has to be uniformed with the flying experience - physically.
It's all about virtual reality. That's the fun. You can become it. Take on the suit.
It's not about chasing flags on the screen. People thinking like that probably thought - "hey, I think flying is boring. That's probably why we have not marketed it broadly yet or made it easier to have the VR experience. Well, I think its boring. I think everything is boring - only funny thing in life is getting paid. And my executives sure think like this already. This is leadership. I only work or do stuff for money. Now let's earn a buck and make this a funny game. Let's make it funny chasing flags or having graphics beams coming up from the ground. I don't have a clue whether this is fun flying - but it looks funny now. Bring me the cash. If I get fired no worries - I already got a new a job. Hey, I used to work for Microsoft international ... now let the games begin ... deal cards, please, show me the hand. 30% probability is nice -It's going to be the new Super Mario ... merry new year 2012, let's go".
Never mind realism. Lets make it look really weird? Lets make it look you're just a gamer and not flying.
Well, I'm still optismistic: Game developers are surfing those waves of expectations for the new MS Flight. Can it succeed FSX as a better consumer experience
for flying. Did they do a new flying experience (consumer) or were they thinking cash and super mario instead? Did the team bulding mesh up?
So I am not trying to be prejudice about this - just sketching the ups and downs before curtain falls. Let's hear what MS will say after CES2012. I don't think they will be talking too much development there - but let's see. Probably some media person within the game industry will pop the question.
And they sure should open the beta to be more public or open towards the fs community - if they intend to fix for flying experience. Because what kind of beta are they running? Is beta for a game with a short life cycle? Or for a VR game like FS with a long life cycle? Is it a shortlived consumer product? Or long term VR platform use?
If they worry about the quantity of feedback they can just classify "open" feedback and then screen it, if they have the time. I.e. based on number of comments (interest) for open beta feedback. One way to handle the logistics there.