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Here’s an interesting article with a lot of insider’s details.

The only reason to use a live orchestra in a game soundtrack would be to make the game better than if you had not used an orchestra; to make the game more immersive, more engaging, more fun than if it didn’t include the orchestra. And on the business side, it would be helpful if you could sell enough units to pay for it.

www.gamasutra.com/view/feature/3492/using_a_live_orchestra_in_game_.php