Posted Oct 31, 2007 at 06:45PM by Ceasar S. Listed in: Wii, PlayStation 3, Xbox 360, Games for Windows Tags: FIFA, Electronic Arts, South Korea, EA Sports
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Electronic Arts to try new pricing models, says CEO Riccitiello - Image 1Electronic Arts' CEO, John Riccitiello, has given a hint that the superstar publisher may soon experiment with new pricing models in the near future. Riccitiello has predicted that the usual pricing and revenue models will soon need to change, after emerging markets have defeated the US$ 59.99 premium price point for video games.

"In the next five years, we're all going to have to deal with this. In China, they're giving games away for free," said Riccitiello. He believes that soon the rest of the world will reach the forked road and accept change. "People who benefit from the current model will need to embrace a new revenue model."

At the start of 2007, Electronic Arts became one of the major worldwide publishers to have given away a current game for free. EA Sports' FIFA 07, Electronic Arts' previous bid in the virtual soccer market, was practically given away to gamers and fans in South Korea.

It must be noted that the game was at first downloaded for free within piracy rings, but soon EA accepted that there was a growing trend in a much larger gaming market (in population) that Western companies would soon have to face. Gamers now want something for nothing, and EA was generous enough to oblige.

FIFA 07 no longer appeared for retail on shelves, and the game was offered free for download over the Internet. In order for EA to gain something out of the gesture, the publisher marketed game "enhancements" for a minute microtransaction fees. Unsurprisingly, it was widely accepted. Korea's gaming economy flourished with microtransaction business models.

Riccitiello notes that as more publishers accept the online distribution model, Electronic Arts may begin testing out different pricing models for its wide lineup of games.


[Via Tech Daily via CNNMoney] Permalink  |   Email this  |   Linking Blogs   |   Digg It!

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5 Comments


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   by platon - 2007-10-31
 » in china it's free now?

Anyway, it's a great idea to reduce the price since I'd buy a lot more games if the price was around 20-30$. Now I only buy the "best" games (for me) so I buy a lot less games... If the games would cost 30$ I'd buy for the same amount, but I'd be able to "try" a game even if I'm not sure I'll like it. That's how a LOT more devs would make money. Still, big time devs won't do this since we buy all their games no matter the price, lol. :'(


   Re: DVSDevise - 2007-10-31
 » ...

China have this model of where you get like a trial/piece of the game and you can pay if you want certain sections or features of that game.

I think it's all crap. I don't want to see this model happen.

I think the current model:

- Demo
- Retail Disc or Cheaper Digital Distubution
- DLC (at least 6 months after release)

There's enough money to be made there EA. And stop trying to charge people for content that's already on the disc! What to make more money? Make better games and support them with great DLC developed after and not before the release of a title. Everything you build prior to release should be on the disc for free! Grrr @ them. Ubi FTW.

   Re: Advertising -


   Re: Twenty-Se7en - 2007-10-31
 » I agree

I'm a lot more likely to have $30 in my pocket than $60... and I am a hell of a lot more likely to blow $30 while just out looking at the local ebgames... more games that I wouldn't have considered as potential buys would creep into my selection - I would play more games - but ultimately I think I would be suckered into spending more in the long run than I currently do.
   by Fallen - 2007-11-01
 » Get off it

So after browbeating us for years with their money cow games they try to come of as generous?. Please.

If this were any other company I might feel more comfortable but this is EA people. These are the people who nickel and dime you to death with 360 content that is already on the disk. These are the people who charge money for IN-GAME money.

This will all end badly and I ****ing called it.

   by Keith K - 2007-11-01
 » I got a better solution

Dont pay EA for anything.. I know they havent gotten a dime from me in a long long time.

Let them collapse in the western market and move to China and out of our lives for good.



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