EA Expects Digital Sales to Overtake Box Retail Game Sales in 2 to 3 Years
August 13, 2012 9:50 AM
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EA promises to stand by physical game sales
The gaming industry is facing an increasingly difficult road to making money. Game sales continue to decline as more and more gamers
migrate to mobile gaming
and online social games. EA COO Peter Moore recently stated that within a few years the company expects digital downloads of its games to overtake sales of boxed versions.
Moore also noted that the company is focused on expanding its array of mobile and free-to-play products. EA publishes some of the most popular games on the market including the “Battlefield” franchise, “Madden NFL”, “Star Wars”, and countless others.
The “Star Wars” MMORPG isn't dong well and will move to a free-to-play model. It was reported earlier this year that the game
of its subscribers.
"There will come a point, whether it is two or three years from now, when we say. 'We are doing more in digital media now than we are in physical media,' and it's clearly ... not far away," Moore said. Moore pointed out that EA's digital revenue had increased to $1.3 billion in the previous 12 months.
EA's Peter Moore
Moore also noted, "This fiscal year we have 41 social mobile and free-to-play games on the slate, and later in the year we might make announcements about more games coming."
Many game publishers and developers are increasingly moving to
for video games. These games are free to download and play, but players have the ability to purchase in game items to increase their capability in the game such as different weapons and armor.
Moore says that EA is expecting $2.6 billion in revenue globally with $1.7 billion of that amount from digital products during fiscal year ending in March 2013. He also reported that EA's digital revenue increased 55% during Q1 despite total revenue declining.
Moore said, "We will never abandon physical media. As long as the consumer wants to buy something on a disc, we will be there to offer it."
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As Long as It's Not Digital with DRM
8/13/2012 10:17:31 AM
I'm all for it as long as I can keep a copy of the application that doesn't have DRM attached to it; especially if it has to phone home each time it's used. The user must also be able to sell and transfer their copy to another person legally.
We've already seen cases of digital distribution games licensing music then being revoked after the music license runs out. Unsuspecting customers can have the rug pulled out from underneath them at any time with game services that rely on a licensing (DRM) infrastructure to play the game.
RE: As Long as It's Not Digital with DRM
8/13/2012 11:05:59 AM
I wouldn't hold your breath for any of that, not from EA at least.
RE: As Long as It's Not Digital with DRM
8/13/2012 11:09:05 AM
Based on current trends you're not too likely to see that, we would need a revolution in business models before that could happen.
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