There are two DLC packs for Alan Wake. They continue the storyline, after the events of the main game, but they are also optional content.
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Fans who bought Alan Wake new will be able to download the episode for free using the discount code on the back of a postcard located next to the manual in the game box. To redeem your code, press the shiny menu button on your controller and go to the tab called "Market place". There's an option to redeem your code, click on it and type the code on the back on the postcard.
In the level, Alan must face his internal struggle, and travel through his subconscious, a distorted image of Bright Falls, to save himself. The only thing to guide him through the hellish nightmare is a GPS signal and Zane's guidance.
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The pack can be purchased from the XBOX Marketplace for $6.99 for console version of the game, however if you have the Alan Wake Collector's Edition, the DLC comes included. If you're playing the game on the PC, the packs will come with the game.
In the level, Alan continues his journey through his subconscious to save himself. The landscape is faltering away now, turning even more into a nightmare.