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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8/13/2012 10:23:48 AM
Good luck taking on Steam. Gamers are turning to indie developers more and more, and Steam is the best platform if you're an indie developer, with more support, easier qualification, and higher chance of success.
Other platforms like Desura or Impulse don't have anywhere near the reach or success of Steam, and too many players see Origin (EA's service) as DRM. And forget about Games for Windows which is the biggest load of crap ever.
Steam is pretty unique in digital content delivery, and it has really turned itself around since its debut. While essentially a form of DRM, it has a huge library, great features, good user experience and frequent sales that encourage users to buy cheap games.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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