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EA's Moore: Pre-owned the "right of gamers and the right of our retailer"

EA's Moore: Pre-owned the "right of gamers and the right of our retailer"

Wed 31 Oct 2012 12:12pm GMT / 8:12am EDT / 5:12am PDT
RetailPublishing

COO talks GameStop and taking Star Wars: The Old Republic free-to-play

EA

EA COO Peter Moore has described the pre-owned market as a right of gamers and retailers, and explained Star Wars: The Old Republic's business model change, in a recent interview.

"Used games were a bigger issue for the industry - I wasn't resigned to it, but I recognised that it was the right of gamers and the right of our retailer," he told Wired as part of a discussion about triple-A free-to-play titles.

"To be very fair, GameStop has always been very public about the fact that [they] keep the ecosystem moving with revenue that comes in, and it's not like they go and take their game credit and go to McDonald's and buy burgers. They re-up into new games."

EA is one of many publisher to use codes to limit and monetise online play for pre-owned titles.

"Our job is to take that consumer and say, you've got a used game consumer and embrace that guy rather than shun him and say 'no, not a penny of what we spent on this we get from you.' It's kept GameStop to be a thriving retailer unlike a lot of bricks and mortar. They've got 6,600 doors. I'm not sure they're there without having a real digital strategy and a used games strategy."

Moore also discussed the move that made Star Wars: The Old Republic free-to-play up to level 50, after it had initially gone on sale as a full price title with a $15 per month subscription charge.

"As we get closer [to release], you realise the world is changing around you…. We have to change accordingly," he explained.

"Now you've got a hybrid model, which is the way I like it, because I'd rather say 'give me all you can eat for 15 bucks a month and I'll play the game if you give me everything,' which is still available. But this fall there will be, we open up the funnel at the top, look, come on in, there's no cost to play, if you want to progress it gets better quickly."

"Price was always the issue…. You talk to people on their way out and say, can you tell me why you're leaving? [They say] "I just didn't want to pay $15 a month. I felt kind of locked in. I love the game, but I'm locked in," and for a lot of people 15 bucks a month is a lot of money."

"So when we looked at the data that was streaming out of it…. It was very clear to us that if we could knock down that initial barrier to entry that is price, that we could blow out the funnel and instead of dealing with several hundred thousand people on a regular basis we could get into millions. That was the plan. The world moved very quickly around us, and we had to react."

EA yesterday released its financial results for Q2, which saw a 40 per cent growth in digital revenue.

3 Comments

Paul Jace
Merchandiser

770 1,005 1.3
Well I'm glad he feels that way about pre-owned games but I'm pretty sure the other higher ups at EA don't share his consent. As for SWTOR, it was either go FTP or close down all together when everyone but a few hundred people remained.

Edited 1 times. Last edit by Paul Jace on 31st October 2012 10:47pm

Posted:A year ago

#1

James Ingrams
Writer

208 72 0.3
All very well him saying this when EA is moving to smartphone and pad games, along with digital distribution.

Posted:A year ago

#2

Tom Pickard
Lead Environment Artist - Campaign Map

308 382 1.2
EA may claim to beleive this but they're the ones who have made their Multiplayer expereince a paid for addition that the origional purchacer of the game gets a code for... Even though in games like fifa surely online is the main reason people play it, meaning the core game expereince isnt actually what your buying and selling, your buying and selling the gateway to that experience....

Im personally quite mixed for pre owned gaming on one hand a constant stream of sales of older games keeps companys going along while developing, Total war still sells copies of Rome1 on steam for example and people do buy it who maybe didnt have a machine to run it years ago, so is it wrong for the developers to make money over a long tail. On the other hand selling somthing you no longer want makes sense to my more frugal side as a consumer...

Posted:A year ago

#3

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