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EA: "We've reached an end of an era"

EA: "We've reached an end of an era"

Wed 31 Oct 2012 2:24pm GMT / 10:24am EDT / 7:24am PDT
BusinessPublishingFinancial

Mixed results, solid digital revenue growth has EA looking to the future. John Riccitiello talks about being at a digital "tipping point"

EA

Electronic Arts had an earnings call with with a mixture of good news and bad, with twists and turns and unexpected surprises. In the end, it's turned out to be about what the company expected, though the guidance for the next quarter has been reduced a bit. In all, there's enough good news to keep the investors who believe in the stock hanging in there a while longer. The naysayers will see enough weak spots to keep them on the sidelines a while longer. Meanwhile, EA will continue to try and generate enough solid hits in one quarter to create some truly impressive earnings results.

Here's how CEO John Riccitiello characterized EA's performance and the overall market environment: "Our non-GAAP revenue was $1.08 billion in the quarter, higher than a year ago despite a significant headwind from the declining packaged goods channel. We also continue to see overall choppiness in the sector. Digital games and services are surging, mobile is scaling nicely and free-to-play is bringing in millions of new consumers. The growth in social network gaming has slowed and console packaged goods are declining, which is typical for console games this late in the cycle."

The growth in social network gaming has slowed? I suppose you could say that, but it's like describing what just hit the East Coast as a 'storm.' When your social gaming customers plummet from over 100 million last year to about 40 million this year, that is more properly described as cataclysmic. It's no wonder that EA spent lots of time talking about mobile games on this earnings call, and near zero time talking about social games.

"The growth in social network gaming has slowed? I suppose you could say that, but it's like describing what just hit the East Coast as a 'storm'"

Riccitiello again: "We have diversified our platform partners and business model so that EA is less vulnerable to weakness in a single channel, platform or business model." A good thing to do, and a subtle dig at companies like Zynga and Activision who have most of their eggs in one basket. It is, however, a very defensive statement, and speaks to what EA sees in the near future: A rather scary retail environment, aging consoles, and no immediate prospects with a big upside potential. It's a conservative outlook, and it implies that EA does not expect a big upside potential in the Wii U, or that new consoles from Sony and Microsoft will arrive any time soon, or that they will substantially move the needle for the console business in any case.

The Wii U was, in fact, not mentioned at all in this earnings call, either by EA or by the analysts asking questions. That means nobody thinks the Wii U is going to be important to EA in the next six months or more, not enough to make a significant difference in earnings. Once again, as with the Wii, if Nintendo wants to see substantial support from EA it will have to show amazing sales numbers for the Wii U. Nintendo's own estimate of 5.5 million units through March 2013 does not constitute an amazing number of units.

Riccitiello is looking to the future, if not in Nintendo's direction: "We are building bridges to the next generation of games and technology. This strategy is delivering for us, and here's a proof point: inclusive of our successes on Battlefield 3 Premium, EA is currently tied for first in digital revenue among western gaming companies. Over the past 5 years, we have consistently grown our digital revenues, averaging annual growth of nearly 40 percent."

"Building a bridge to the future is a good thing, but how long is that bridge going to be?"

Steak yesterday, and steak tomorrow, but never steak today. Building a bridge to the future is a good thing, but how long is that bridge going to be? When will the future arrive? EA's stock price is still languishing as investors continue to believe that the future isn't nigh for EA. Investors are in the back seat, whining "Are we there yet?" "When are we getting to the future, I'm hungry for profits." EA's response: "Pipe down back there, and have some of these digital revenue energy bars."

Riccitiello sounded a somewhat passive note about EA's approach to the market: "To summarize, the game sector is in a volatile period of change and transition, awaiting new catalysts for even more rapid growth." Can't EA whip up some of its own catalysts for growth? A major push into tablet gaming, or a key acquisition, or a stunning new IP? Signing up over 70 independent developers on Origin to sell their games is a good step in that direction; let's hope some of them have some breakout hits.

EA did have some solid success stories to tell. The continued strong growth in digital revenue is a bright spot, and one that continues to help alleviate the pain from underperforming titles. In the upside surprise category, both FIFA 13 and Madden 13 had a hell of quarter. EA's Frank Gibeau gave the numbers: "FIFA 13, EA's biggest game of the year with more than 7.4 million units sold in the first 4 weeks. FIFA 13 launched with a 90 Metacritic and quickly became the #1 seller in more than 40 countries." Madden 13 is tracking to be the best-selling Madden ever, and both of those titles are doing this at a time when the consoles are in their 7th year.

Gibeau continued, "Another breakout hit in the fiscal quarter was The Simpsons: Tapped Out, a free-to-play mobile title which launched in August and was the #1 grossing game on iOS for most of the last 4 weeks. The game has registered roughly 17 million downloads and is generating meaningful revenue in more than 40 countries."

The big disappointments for EA are NBA Live, which EA canceled, and Medal of Honor Warfighter. Medal of Honor is falling well below expectations in sales and critical reviews, but EA will keep pushing it to see if it finds an audience. As for NBA Live, certainly EA would love to have a quality basketball game, and you can bet the publisher's planning to put a good team on the project. The pressure will really be on that team to perform after the embarrassment of a canceled product.

"Our average sale on Origin, actually, is about $64, so people are buying multiple games"

Frank Gibeau

Further out, Gibeau looks to Crysis 3, Dead Space, 3, Real Racing 3, and Sim City to drive revenues through the rest of EA's fiscal year. The odds look good for strong performances on all of those titles, but one does notice a lack of original IP in the mix. Is it still possible for EA or Activision to have a major, stock-price enhancing hit with a brand new IP? Or is that just too damn risky these days?

Analysts asked about EA's efforts on next-gen consoles, which apparently does not include the Wii U in anyone's mind. Predictably, EA declined to say anything about new consoles, other than the already announced investment in next -gen titles last quarter ($80 million, a fairly conservative amount).

Another analyst question, about EA's Origin digital distribution service, brought out some interesting data. EA has 30 million registered users on Origin, and according to Gibeau "about 4.4 million people have actually purchased on Origin. And our average sale on Origin, actually, is about $64, so people are buying multiple games. The breakup of that 30 million is, I think, mostly interesting is we're now seeing as many as 13 million who are accessing Origin via their mobile devices."

Finally, Riccitiello summed up EA's view on the industry thusly: "We're pretty strong believers in revenue growth going forward. We think we've reached sort of an end of an era. We are reaching a tipping point relative to digital, and we've intimated, in many ways as we can, without getting ahead of ourselves that we are believers and it's worth investing in next-generation technology." It sounds good, but it seems that most investors will continue to sit on the sidelines until EA starts posting more impressive numbers.

32 Comments

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
Once again, as with the Wii, if Nintendo wants to see substantial support from EA it will have to show amazing sales numbers for the Wii U. Nintendo's own estimate of 5.5 million units through March 2013 does not constitute an amazing number of units.
1. The Wii did amazing sales numbers before it and still received pitiful support from EA.

2. 5.5 million in the first 4.5 months still beats the first 8 month total for either the PS3 or X360.

When it comes to EA fully supporting Nintendo platforms, you really may as well forget about it. Doesn't matter how good it sells.

Posted:A year ago

#1

Rene Laurent

2 0 0.0
Most old school Nintendo fans don't waste their time on EA. Well not since about 1999 when they were a little fresher...

Posted:A year ago

#2

Hugo Trepanier Senior UI Designer, Hibernum

156 144 0.9
I think part of the reason for that may be that Nintendo's machines in recent history have often been generally perceived as the more family friendly consoles, whereas few of EA's games are really considered as such. Correct me if I'm wrong, I've really only played Mario Party, Mario Kart and a few other colourful kid-friendly titles at friends' places but I do know there are exceptions such as Metroid and Resident Evil, etc.

It seems the Wii U will be able to attract some of the more hardcore crowd, with a console that's technically capable of playing the same games we currently have on X360 and PS3, even with additional improvements.

That alone may not be enough to convince EA if Microsoft's and Sony's next platforms blow Nintendo's out of the water though. Apart from exclusive titles, I don't personally see a huge advantage to getting the Wii U when I already have another current-gen console that plays most of the titles I'm interested in.

Posted:A year ago

#3

Bruce Everiss Marketing Consultant

1,692 594 0.4
@Jim Webb

Wii U sales are predicted to be about the same as Nexus 7 sales. And the Nexus 7 is just one of many Android devices that are being bought at the rate of 1.3 million units per DAY.

Posted:A year ago

#4

Daniel Hughes Studying PhD Literary Modernism, Bangor University

436 496 1.1
Popular Comment
Apples and oranges Bruce, we've had these conversations before. Consider revenue/profit per user etc then come back.

Jim's point stands. Wii U could easily be in 4.5 million homes by the end of March with a healthy attach rate, and EA won't even do day and date versions of all their latest HD titles, which would hardly require a huge investment and would not require particularly high sales to break even or profit.

Hugo, it doesn't matter in the next 12 months (before MS and Sony are out) if their next machines are more powerful than Wii U. The current install bases are large enough, and active enough (as we see with Madden) to support hugely successful titles and profits, and will probably be strongly supported through-out 2013 and 2014 while Microsoft and Sony seek to establish their next consoles--which could be as tough or even tougher for them than this transition is for Nintendo, there are too many unknowns right now to assume Nintendo can't succeed. A small amount of money made from HD gaming reinvested into Wii U cross-platforms titles is easy money for EA and other third party publishers, as Ubisoft have pointed out and acted upon. EA aren't putting their money there because they don't want to have to compete with Nintendo's first party titles. That's the truth of it.

Look at how EA are treating Wii U. Last E3 they claimed the system would see "unprecedented support"; in reality that means a 9 month old game, Mass Effect 3, for full price, when two weeks before Wii U Mass Effect Trilogy comes out on competing systems at the same price point. The lesson EA should have learnt with Wii is that if you treat customers of one console like second class citizens, they will take their business elsewhere. Whenever you start supporting a console, whether it's from day one or later, you should bring your best studio, your best budget, your best marketing team, and your best and new IP. That's the only way to really make a splash in an insanely competitive environment, and it's tough enough to do without having Nintendo to compete with. EA don't want to put the effort in right now because they don't see short-term benefit, and are wilfully blind to the long-term benefit. Nintendo have proven that under their 'new' (Iwata etc, who conceived and launched all Nintendo's post GC/GBA hardware) management, they can build significant install bases even when their backs are up against the wall: just look at their last three systems.

Ubisoft are the only major Western company that are really behind Wii U, and I hope they reap the benefits. I'm a multi-format gamer, but even then, as a Wii customer, I hate being treated like a second class citizen by a mega-publisher that does have the resources to invest across multiple systems and avenues, and I will take my business elsewhere. If EA don't have great games in the Wii U's protracted launch window, and Ubisoft and Nintendo do, it will be Ubisoft and Nintendo making money from Wii U, while EA, late to the party, will again claim that "third parties can't sell on Nintendo systems". That's true, but it's only true because too many third parties can't be bothered turning up on Nintendo systems.

Edited 1 times. Last edit by Daniel Hughes on 1st November 2012 10:04am

Posted:A year ago

#5

Dave Herod Senior Programmer, Codemasters

527 786 1.5
Popular Comment
Bruce, you could at least try and be subtle about trying to steer every single conversation towards your own agenda. I'm surprised you don't wander into the pub and crash people's conversations about last night's footy match with "Angry Birds has been downloaded a BILLION times, don't you know!".

Posted:A year ago

#6

Kingman Cheng Illustrator and Animator

954 182 0.2
Dave what's wrong with you? It's imperative that pub-goers know facts like that! ;)

Posted:A year ago

#7

Keldon Alleyne Handheld Developer, Avasopht Ltd

449 423 0.9
Ubisoft are the only major Western company that are really behind Wii U, and I hope they reap the benefits. I'm a multi-format gamer, but even then, as a Wii customer, I hate being treated like a second class citizen by a mega-publisher that does have the resources to invest across multiple systems and avenues, and I will take my business elsewhere
Reminds me of the N64 days where you'd have excellent games like Metal Gear from Konami on the PSX but then they'd come out with terribly under produced games like Hybrid Heaven for the N64, which could have been a great game but I couldn't help but feel insulted by the clear lack of effort.

@Bruce: yes Bruce, we know this, and we don't care. The same way I'm not going to write cheesy pop songs just because they sell more, instead I play music I like for the audience that appreciates quality music. As someone who claims to be in marketing you seem to ignore the fact that there is a market for HD consoles. Maybe in 100 years time they will be gone, but you sound a lot like an evangelist of the Appocalypse, well guess what Nostradamus ...

Posted:A year ago

#8

James Ingrams Writer

215 85 0.4
Packaged games is a hardcore gaming HOBBY. This is how it's been for 30 years. The packaged market has survived satellite, HD, 3D, Digital and other TV technology. It survived the hand-held tamagotchi's of the 80's and the various toy fads

Digital download games for smartphones etc is very casual and is much more likely to be affected by other new forms of entertainment technology. By moving away from packaged games the industry will be much more fragile to outside influence and will see much more ups and downs.

Edited 1 times. Last edit by James Ingrams on 1st November 2012 12:27pm

Posted:A year ago

#9

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
@Jim Webb

Wii U sales are predicted to be about the same as Nexus 7 sales. And the Nexus 7 is just one of many Android devices that are being bought at the rate of 1.3 million units per DAY.
Thank you, Bruce. I did not know that.

Man, why bother with the paltry console market at all? EA, Ubi, THQ, all of them should just jump on the Android train and forget the $20 billion worldwide console software market. Because 1.3 million PHONES per day is where I want to make my money from. Never mind that a company like EA makes 10 times more software revenue from home consoles than on mobile phones.

Posted:A year ago

#10

Bruce Everiss Marketing Consultant

1,692 594 0.4
@Jim Webb
We are in transition.
Consoles have been declining in popularity since 2008 and have recently fallen off a cliff. In terms of hours played they are now a niche. The big publishers have closed or downsized plenty of console studios and will close a lot more as they become uneconomic.
Smartphones are massive for gaming but the market is still developing. Business models are being worked on to monetize the immense growth in demand for these games. Small tablets (7 inches approx) may well become a more popular gaming platform than smartphones. But they will 100% definitely become a more popular gaming platform than consoles.

I can sit at my desk in Silicon Spa and simultaneously publish a game to a billion people all around the world, without any plastic or cardboard or bricks and mortar shops being involved. That game can be updated, changed or modified by me almost at will (with a bit of a delay from Apple). It can be sold at any price, starting at zero and can contain a wide variety of in game purchase options. Also that game can reside mostly in the cloud and have access to effectively infinite storage and processing power. It will also be carried round by its user 24/7 on a device that cost them nothing (the game machine comes free with the phone).

The customers are voting with how they spend their time and money and consoles (as we currently know them) are on the way out.

Posted:A year ago

#11

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
Popular Comment
My God, Bruce. You are absolutely right. I didn't believe you the first 20 times you posted that exact same speech but I sure have it now.

I'll just ignore the studio closure and cuts to the mobile market. I guess I have to ignore the $20 billion in home console software in hopes that I can be part of the $5 billion iOS/Android game revenue market. I'll just ignore that old consoles are transitioning to the new consoles. I'll just ignore the tiny screen size of the mobile phone. I'll just ignore the difference in game experience. I mean why would I want to play a game like Uncharted on a 50" TV with high end surround sound when I could be playing a version of Reversi/Othello with cats on a 4"-10" inch screen with basic stereo audio?

Because Bruce is right.

Posted:A year ago

#12

Bruce Everiss Marketing Consultant

1,692 594 0.4
@Jim Webb

Most people don't want the 50 inch television gaming experience. They have lives. Most people want some fun they can dip into any time anywhere. Which is why gaming is booming like crazy. The public have spoken with their actions.

Posted:A year ago

#13

Bruce Everiss Marketing Consultant

1,692 594 0.4
@Jim Webb
And Othello is one of the world's great strategy games, alongside chess, played by millions of people, with national championships and a world championship. Analysts have estimated the number of legal positions in Othello is at most 10 to the power 28, and it has a game-tree complexity of approximately 10 to the power 58. Mathematically, Othello still remains unsolved.
You work in the game industry and you denigrate this.

Posted:A year ago

#14

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
Popular Comment
Which means....? Come on, Bruce. I know you can figure it out.

That both markets can exist together. Something for those that want the big experience and something for those that want the smaller experience. Yay. We're all happy.

Just one question, Bruce. If the console market has a year with increased revenue, does that mean that people are voting with their wallets that they no longer want the mobile experience? I mean you use the reciprocal quite often.

Posted:A year ago

#15

Keldon Alleyne Handheld Developer, Avasopht Ltd

449 423 0.9
Sometimes I wonder if Bruce really believes what he says, because either he deliberately ignores information or he is completely unaware he ignores it. I can't quite put my finger on this, but for one thing, in 2008 the gaming industry was considerably bigger than it was before 2006, anyone with a decent pair of specs can see how the graph blips in response to the Wii, I won't waste my time writing figures here because every time I do that I see Bruce selectively ignoring facts and figures and parroting the same old lines.

Posted:A year ago

#16

Keldon Alleyne Handheld Developer, Avasopht Ltd

449 423 0.9
Mathematically, Othello still remains unsolved.
Which means what exactly? The search tree complexity is absolutely no indication of depth.
The customers are voting with how they spend their time and money and consoles (as we currently know them) are on the way out.
Have you studied the behaviour of people who do play consoles, because anyone with any competency in economics and science would tell you that you would need to examine their decision process and playing behaviour rather than focusing on what the majority who does not indulge in this activity does. How much time do they devote to different activities? Without that understanding you will be speaking in ignorance about it's demise because you won't know why console gamers exist and whether they will continue playing it for another 50 years in the same numbers.

Focusing purely on the behaviour of the masses causes a blindness to what goes on on the individual level; this is explained by Heisenberg and is well known in the field of economics.

You also fail to account for game series that increase in numbers and annual revenue.

Posted:A year ago

#17

Hugo Trepanier Senior UI Designer, Hibernum

156 144 0.9
Popular Comment
Most people don't want the 50 inch television gaming experience. They have lives.
Implying that people who have console or PC gaming as a hobby are pathetic no-life scum here, Bruce?

See it this way: gaming for me, and millions of others, is a hobby, even a passion, a fun activity that we like to do every week, or every day when time permits. It is no different than enjoying sports or a concert or good food. It can be done by yourself or with others and the important thing is that it makes people feel good because it is an enjoyable experience.

There is a market for that! I spend hundreds of dollars on gaming every year, and maybe less than 1% of that is spent on social and mobile games. If there were no more AAA experiences on offer I would simply spend less on gaming as a whole. Do the math.

Now, the fact that there are other alternatives to spending time does not invalidate this one hobby. I can collect stamps AND fly a kite if I want to (perhaps not at the same time) and just because these are both niche hobbies does not make them stupid or irrelevant activities either. Why then should every single developer jump on the bandwagon and abandon this other market that can still be lucrative? Your vision of dominance makes absolutely no sense because you are comparing different activities. Living room gaming is NOT the same as mobile gaming, even though the two are close relatives.

And just to be clear, I do work in the mobile world, have been designing mobile and social games since 2004. I obviously know it's a thriving market and also a very profitable business for some. There's no denying that. But I'm tired of the same old bs claiming that big budget games absolutely need to disappear because there's a promising new kid on the block.

Posted:A year ago

#18

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
Here, here, Hugo.

And Bruce, I wasn't denigrating the game of Othello itself. I own a board as well as a few variations. Wei-Chi (Go) and Pente (like your Gomoku game) among them. What I was noting was the difference in experience that some people desire. Much like Hugo explained above. If you took my comment as a denigration to the game itself, then you did a very poor job of grasping my point. Which shouldn't surprise me given your inability to grasp the point of most articles and comments here unless they boast of the successes of mobile. That you grasp with absolute clarity.

Posted:A year ago

#19

Lewis Brown Snr Sourcer/Recruiter, Electronic Arts

199 56 0.3
No phone or tablet experience can replicate a 42 inch, surround sound and controller esperience with BF3, Borderlands 2 etc...7/10 inch Touchscreen does noy cut it for this at least.

Edited 1 times. Last edit by Lewis Brown on 1st November 2012 5:35pm

Posted:A year ago

#20

Kieren Bloomfield Software Engineer, EA Sports

92 79 0.9
Well I for one hope that if console gaming is becoming more niche then maybe we won't have to pander to the masses and create more complex and interesting games. Maybe, just maybe one without button prompts for every single action...

Posted:A year ago

#21

Laurens Bruins Jaywalker, Jaywalkers Interactive

135 158 1.2
Yeah! Most people have lives, silly gamers!

People who have lives - not you, nerd - don't fill their spare time with stupid stuff like playing silly games. They spend their time doing useful stuff, like:
Watching television for almost 3 hours a day.
Or browsing the internet for silly gifs.
Or take a walk.
Or trolling forums about the imminent death of everything not mobile.

You nerds should really stop having fun and get a life. ;)

Posted:A year ago

#22

Dave Herod Senior Programmer, Codemasters

527 786 1.5
Bruce, do you still maintain that this is your "literary style", and not "trolling"? Because it looks very much like trolling to me.

Posted:A year ago

#23
I have had a long held suspicion Bruce is a paid "disinfo" agent, and thus cuts his cloth to trim, whichever way the wind blows (so we know the main agendas tend to be mobile, zynga and all that jazz (whatever the information/statistic or prevailing logic of the conversation can be)

Posted:A year ago

#24

Kingman Cheng Illustrator and Animator

954 182 0.2
I have had a long held suspicion Bruce is a paid "disinfo" agent, and thus cuts his cloth to trim, whichever way the wind blows (so we know the main agendas tend to be mobile, zynga and all that jazz (whatever the information/statistic or prevailing logic of the conversation can be)
This, with the occasional irrelevant and shameless company plug.

Posted:A year ago

#25

Bruce Everiss Marketing Consultant

1,692 594 0.4
From the article: "John Riccitiello talks about being at a digital "tipping point"" and "Digital games and services are surging, mobile is scaling nicely and free-to-play is bringing in millions of new consumers." and "The continued strong growth in digital revenue is a bright spot, and one that continues to help alleviate the pain from underperforming titles."

Really, how much longer can physical cardboard and plastic games exist? 2 years? 5 years? Certainly not more. We are moving very rapidly indeed to an app store world.
Once games are on app stores, with no physical costs of distribution, competition will drive the retail price to zero, which Apple are very happy with. But would Nintendo, Sony and Microsoft be so happy? I see that you can't price an app at zero on the new Windows Store.

Posted:A year ago

#26

Kingman Cheng Illustrator and Animator

954 182 0.2
So when 'cardboard and plastic games' are still on the shelves 2-5 years later are you going to quit the games industry?

You seem to talk like everyone here thinks there's no potential in mobile/digital games but that's never been the case. It has great potential and it'll undoubtedly grow stronger over the years, but you talk like they can't possibly co-exist with other platforms in the near future. It's a different gaming experience that still has a massive market. PC gaming has declared as 'dying' for many years but as far as I can see it's still very much alive and doing well.

Edited 1 times. Last edit by Kingman Cheng on 2nd November 2012 3:32pm

Posted:A year ago

#27

Hugo Trepanier Senior UI Designer, Hibernum

156 144 0.9
Who is talking about plastic anyway? Hmm, no one here is debating the power of digital distribution. I think we can all agree on that.

However, you can still download and play high quality titles on consoles, PSN and XBLA, and Steam on PC (among others), that offer enhanced and deeper experiences compared to what you get on tiny screens in usually short play sessions. So vastly different, in fact, they can't be neglected as forms of entertainment that are sought after by many customers, who may or may not also game on other platforms. There is still a market for AAA experiences that have very little in common with your average angry bird.

When I sit down comfortably to play a new episode of Telltale's excellent (downloadable) The Walking Dead adventure game, I do so fully expecting to be totally immersed for 2-3 non-stop hours, in a darkened room with headphones and a large screen. I will make sure I have enough free time to experience it uninterrupted.

When I sit down on the loo, I may have time to solve a puzzle or two or send a few birds flying into some pigs. Can you honestly tell me this has anything in common with the other example above? And more importantly, why shouldn't I be able to enjoy both?

Posted:A year ago

#28

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1

Posted:A year ago

#29

Curt Sampson Sofware Developer

596 360 0.6
Really, how much longer can physical cardboard and plastic games exist? 2 years? 5 years? Certainly not more.

So, Bruce, are you saying that 100 Mbps home Internet connectivity will be deployed to the vast majority of consumers in America and Europe within five years, or are you saying that 12 GB AAA games are going to vanish?

I have to say, neither looks terribly likely to me.

Posted:A year ago

#30

Doug Paras

117 61 0.5
The vast majority of the people in the world lack fast Internet to support digital distribution. I myself on get 1.5Mbps, I can barely stream video off you-tube let alone things like netflix or Games. There are still people who have fast Internet connections but have limited bandwidth per month and must pay for extra bandwidth used over the limit. Do people really expect things like this to change in 5 years? 10 years? I don;t see this changing anytime soon and find people who think everything is magically gonna go digital distribution are delusional.

Posted:A year ago

#31

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