Close
Report Comment to a Moderator Our Moderators review all comments for abusive and offensive language, and ensure comments are from Verified Users only.
Please report a comment only if you feel it requires our urgent attention.
I understand, report it. Cancel

Retail

EA's Peter Moore reaffirms retail's importance

EA's Peter Moore reaffirms retail's importance

Thu 10 May 2012 6:29pm GMT / 2:29pm EDT / 11:29am PDT
BusinessRetailOnline

The EA COO also talks about the financial benefits of day one DLC

While most feel that digital distribution is the way of the future for all video games, retail still plays a significant role for console gaming. Electronic Arts COO Peter Moore talked about the significance of retail at the Bank of America Merrill Lynch 2012 Global Technology Conference.

"Once we get that disk installed in the tray of an Xbox or a PS3, we then look at our consumer on an ARPU basis," Moore said, according to Gamasutra. "We love what retail does for us. We love its ability to create massive launches and create excitement. GameStop probably sees three million hardcore gamers walk through their doors every day, and that's a marketing opportunity for us."

Moore noted that there are still issues holding consumers back from fully embracing a digital-only model. "A lot of our consumers don't own credit cards. A lot of our consumers are still afraid of what happened to the PlayStation Network when 77 million accounts were accessed by Anonymous in 2011," Moore said. "A lot of our consumers prefer to go into retail buy those Xbox Live or PlayStation Network cards, and retail gets a very strong margin on that. For retail, if they can evolve to be not just a physical media purveyor, but a digital media purveyor, it'll play a very strong role in our business going forward."

Retail cards for DLC do well, said Moore, especially when it is available at launch. Day one DLC can clearly result in an increase in revenue, indicates Moore.

"The other key thing is selling digital content on the day of launch...When we sold Mass Effect 3 back in March, we saw a 40 percent attach rate that first week to DLC at GameStop in the United States. Not only are you selling a $60 game...you're selling $20 DLC, so the sale becomes $80," Moore said.

7 Comments

Morville O'Driscoll Blogger & Critic

1,629 1,509 0.9
"A lot of our consumers prefer to go into retail buy those Xbox Live or PlayStation Network cards... it'll play a very strong role in our business going forward."
If the rumours are true, EA are once again behind Steam. Colour me shocked.

( http://kotaku.com/5909109/gamestop-admits-defeat-starts-selling-steam-vouchers )

Posted:2 years ago

#1

Barrie Tingle Live Producer, Maxis

399 217 0.5
Where does it mention EA being behind Steam?

EA has always said it wouldn't stop EAP titles going on Steam which is what happened with the "Indie Bundle" that came out. It has always been that EA developed titles wouldn't go on Steam.

Posted:2 years ago

#2

Morville O'Driscoll Blogger & Critic

1,629 1,509 0.9
What? No, I think there's some misunderstanding there. :)

I was pointing out (obtusely) that the next step forward for EA (taking the quote above) would be to sell Origin "points-cards" in physical stores. Something that Valve are rumoured to be doing next week. That's all. *confused* :)

Edit: Ah. "Behind", maybe? I meant, Behind as-in one-step behind, not puppet-master behind. :)

Edited 1 times. Last edit by Morville O'Driscoll on 10th May 2012 8:48pm

Posted:2 years ago

#3

David Radd Senior Editor, IndustryGamers

359 78 0.2
EA directly sells their products at retail in a way that Valve doesn't. It would be very odd for them to offer Origin credits at GameStop, but that doesn't mean it won't happen!

Posted:2 years ago

#4

Steve Peterson West Coast Editor, GamesIndustry.biz

111 73 0.7
It seems to me that if you have to re-affirm the importance of retail, it's a tacit admission that retail is becoming less important.

Posted:2 years ago

#5
“The other key thing is selling digital content on the day of launch…When we sold Mass Effect 3 back in March, we saw a 40 percent attach rate that first week to DLC at GameStop in the United States. Not only are you selling a $60 game…you’re selling $20 DLC, so the sale becomes $80,” Moore said
.

That’s what irks me about these sales. I completely understand wanting to leverage value in what you can offer to an audience, but seriously, to gouge gamers’ wallets in this fashion is, to be honest, rude. If you’re telling me that this content is so important and matters so much that it is promoted along with the game and on launch day, then also explain to me why the monetary value of it is a third of the base content’s price?!

To make a simple and short arguement: either make a $60 game or an $80 game…but don’t try to make me believe I have a choice. The way you’re putting it Mr. Moore is I either get your full product of a part of it and that “part” is represented as being full content. No! It’s a book without the last chapter, and so much exact in that example when you decide to bring up Mass Effect 3. Make a game. Sell your game. it’s not a secret you wish to make money, so why hide behind pricing structures and DLC models only to avoid giving your game a price tag it deserves. Change the market if you’re such a leader, make a game and sell it for $80…at least you’re being upfront about just how good and well put together you’re game is.

LarryBraz
1life2play

Posted:2 years ago

#6

Preet Basson Studying Mathematics with Statistics, University of Portsmouth

92 13 0.1
This confirms one thing, fisting consumers is Mr Moores thing.

Posted:2 years ago

#7

Login or register to post

Take part in the GamesIndustry community

Register now