EA CEO Says Games Cost Too Much, Different Pricing Models Needed
by Carlos Bergfeld, Oct 31, 2007 1:43pm PDTEA CEO John Riccitiello predicts the current standard of $59 games will become obsolete in less than half a decade, the CEO said in a discussion with Fortune's Tech Daily blog. "In the next five years, we're all going to have to deal with this. In China, they're giving games away for free," he told Fortune. "People who benefit from the current model will need to embrace a new revenue model, or wait for others to disrupt." Riccitiello went on to say he expects EA will experiment with different pricing models for digitally distributed titles fairly soon. Elsewhere in the post he defended video games from detractors who cite them as overly violent, saying they are unfairly judged.
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Comments
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Why the hell do games cost so much when movies cost way more to make and are cheaper to buy? Less content? Different medium? What's wrong with pricing video game shipments to suppliers and retailers the same way DVDs are priced (percentage-wise)?
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This might seem like a consumer unfriendly comment, but resales of games that only profit the retail segment hurt the developer, hurt the publisher, and ultimately hurt the consumer, because it drives new prices sky up. The model that needs to change first is retail needs to start paying a percentage of the resales to the people who actually made the game, or make retail secondary market illegal. The former is preferable, but hard to control. The latter is draconian, but really the only way to fix truly fix situation. And places like Gamestop will fight hard against either of those options. They don't care that they are killing the viability of this industry. They care only about their bottom line.
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if EA ever wants to gain redemption in the eyes of a lot of scorned gamers they need to stop saying what they think and start DOING it. they've been saying a lot of things lately. consoles will die out, prices need to come down, focus on more innovative games and stories within their studios...
all they do is talk talk talk talk talk, i have never ever seen them do anything as far as taking a step forward to do something positive instead of being a cancer on video game innovation and progress.
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ps, developed under guidance from Fox News Cable Network by dice
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I just don't want ads, subscription fees, 6 expansions, unfinished games,
downloadables that should have been included, and anything else EA
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I don't really see an easy way to fix this while keeping the current model where games, for the most part, are not meant to make revenue by service fees or expandable/exclusive content, but act as one-time money injectors. With a 2 figure price, it takes quite some degree of success to make a profit there.
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