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EA's Peter Moore reaffirms retail's importance

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.

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Latest comments (7)

Morville O'Driscoll Blogger & Critic 4 years ago
"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 )
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Barrie Tingle Live Producer, Maxis4 years ago
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.
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Morville O'Driscoll Blogger & Critic 4 years ago
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

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Show all comments (7)
David Radd Senior Editor, IndustryGamers4 years ago
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!
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Steve Peterson Marketing Consultant 4 years ago
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.
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Larry Brazil Host/Principal, 1Life2Play - ManCave Studios4 years ago
“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
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Preet Basson Student 4 years ago
This confirms one thing, fisting consumers is Mr Moores thing.
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