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Electronic Arts to try new pricing models, says CEO Riccitiello |
Listed in: Wii, Xbox 360, PS3, PC Gaming Tags: EA Sports, Electronic Arts, FIFA, South Korea
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Electronic 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.
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Comments
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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.
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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.
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Let them collapse in the western market and move to China and out of our lives for good.
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