Half-Life 2 - Episode One Interview
John Callaham writes "On the eve of its release, Valve's Doug Lombardi tells FiringSquad why Half-Life 2 Episode One, their first chapter in their episodic first-person shooter, will be worth the $20." From the article: "From the creation standpoint, it's much easier to develop the story and plot via Episodic releases, as the focus is tighter by default. And since each of the HL2 Episodes are being created by a single development team, the story flow will be more cohesive as it's the work of a single body and not the collaboration of separate teams attempting to merge the different chapters after years of working separately. We are, however, keeping a very close eye on the overall story flow as we advance folks from City 17 to the adventures that lie outside the City in Episodes Two and Three."
HL2 was a very complete game in itself, but in the end, obviously, it was left hanging. The alternative to sequel episode therefore would have been to piss a lot of people off by leaving it hanging, or to release a full game (full price).
So instead we have episodes. At $20, well, that's about between 1/4 and 1/2 the price of a normal game.
What is good about this is that it encourages quality. Why? Because if an episode sucks incredibly, nobody will buy the next one. Therefore, in order to sell future episodes, the existing ones have to not suck.