EA: The PC is 'Rapidly Becoming the Largest Gaming Platform in the World'
by Nick Breckon, May 05, 2009 4:32pm PDTDuring a quarterly earnings call, Electronic Arts executives expressed their optimism for the digital download market on reports of strong financial progress in the sector.
EA CEO John Riccitiello reported that the company had seen its digital direct revenue grow to $400 million in the last fiscal year, while CFO Eric Brown noted that digital game distribution alone nearly doubled in revenue year-over-year to $80 million.
"This is a big year for us," said Brown. "The online part of our business is growing as much as 60% year over year."
"In terms of distribution, the way we look at a lot what's happening in the future is, we've got probably a billion PCs out there in the world," he continued. "Very rapidly the PC is becoming the largest gaming platform in the world, just not in a packaged-good product."
"As you look at what that means in terms of distribution of product, we think that's incredibly exciting because it's going to open the market to new demographics, new countries and new types of gameplay," he added.
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Comments
Still, that's another 3 -4 years. In the next two, however, we'll start to see MSFT rolling out some conceptual specs on the new Xbox, and Sony will continue to say their product has a much longer life cycle, until finally they realize that people will want new and will expect a new PS within 1-2 years of a new Xbox release.
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Look at the current stock market value by company:
EA $6.6b, Activision Blizzard $14.8b, Ubisoft $1.9b, TakeTwo $700m, THQ $250m, Midway bankrupt, Eidos acquired for $58m. These are all console companies with the exception of Activision which has Blizzard. Now compare these market values to the Asian online game companies.
Tencent $17.1b, Netease $3.9b, Shanda $3.7b, Giant $1.9b, Perfect World $1.0b, NCSoft $2.3b, Neowiz $400m, CJ Internet $300m. If you take a look at it, the Asian game companies now have a larger combined market value than the western companies.
Now look at the companies' operating profit margins:
Activison 22%, EA -4%, Ubisoft 11%, TakeTwo 7%, THQ -30%, Midway -45%, Eidos -44%. These margins are at best 22% and that is because Blizzard contributes 52% margins to Activision. If you just look at Activision console biz it has a 12% margin. So at best console publishers have a 12% margin and many are hugely in the red and have gone bankrupt.
Now look at the Asian online companies:
Tencent 43%, Netease 62%, Shanda 40%, Giant 60%, Perfect World 47%, NCSoft 14%, Neowiz 21%, CJ Internet 29%. I wonder who is more profitable??? ..... its not even close. Online PC MMO is significantly a better biz than selling packaged goods console games at retail.
Now you wonder why EA is trying so hard to get into the online space? Just look East and you will find your answers!
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western gamer developers need to catch up
WoW is an example of lame game
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There are a LOT of things which killed PC gaming in a very core way, and than blaming the pirates or whoever else, just to drow atention from this miserable ports...
But after all, during this long years I can say PC gaming is NOT dead and it will never be. I hear this storyes since 1995 and as wonder hardcore games ARE PC games and PC gamers are still here.
Maybe majority here will not agree with me and I can understand that, but tell me one good title for consoles still life after 2-3 years, and I'll tell you 10 for every one of them wich you can find still people playing on PC.
# 1 - Quake
# add the rest :-)
There are a LOT of things which killed PC gaming in a very core way, and than blaming the pirates or whoever else, just to drow atention from this miserable ports...
But after all, during this long years I can say PC gaming is NOT dead and it will never be. I hear this storyes since 1995 and as wonder hardcore games ARE PC games and PC gamers are still here.
Maybe majority here will not agree with me and I can understand that, but tell me one good title for consoles still life after 2-3 years, and I'll tell you 10 for every one of them wich you can find still people playing on PC.
# 1 - Quake
# add the rest :-)
There are a LOT of things which killed PC gaming in a very core way, and than blaming the pirates or whoever else, just to drow atention from this miserable ports...
But after all, during this long years I can say PC gaming is NOT dead and it will never be. I hear this storyes since 1995 and as wonder hardcore games ARE PC games and PC gamers are still here.
Maybe majority here will not agree with me and I can understand that, but tell me one good title for consoles still life after 2-3 years, and I'll tell you 10 for every one of them wich you can find still people playing on PC.
# 1 - Quake
# add the rest :-)
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I'm a gamer because of Deus Ex, Doom, StarCraft, Baldur's Gate 2, Chrono Trigger and BioShock, not cute minigames.
Hmm, the more I think about it, the more consoles are designed to make money. I know it sounds stupid, but when you have ONE company selling you a product they can raise the prices to whatever they want. A comparable computer to a 360, parts-wise, is pretty much a throw-away/ give-away PC. Nintendo makes some 45% profit on every Wii sold -- if a PC parts manufacture tried to do that they'd go under REAL fast. Apple computers cost WAY more than their hardware is worth (assuming you see no worth in shiny plastic), and console games in general cost $10 more because of the privilege simply to be played on a console (owned and regulated by a private company). Um, I guess what I'm saying is that a PC is an open platform for hardware and competition, whereas consoles (and Apple) are restricted and regulated by a single company.
I need some coffee -- this post doesn't even have a point. Ok, here's a point: Pick and choose your computer components, learn how to build your own computer and help bring prices down through competition! OK.... coffee....
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Isn't this the same company that hogties the consumer to their homegrown, derided online distribution platform?
Isn't this the same company that pushed for activation DRM on Mass Effect, Spore, and Crysis Warhead?
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Syndicate maybe?
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People like to pretend like good games were made for them and grow on trees but they don't. If people don't start paying for their stuff, then we are going to see a huge decline in the PC gaming industry a few years. People can deny this and say "well, it's not my fault that I steal games, it's the developers fault because their games aren't good enough or the specs are too high", but unless we change our moral outlook on gaming, the PC is going to take a change for the worse.
Im talking casual games and subscription-based games, as these will be the only economic models that can hold piracy at bay.
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"We have decided to depart the console hype train since it's a train to no where".
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PC is the second biggest gaming platform
This tip is free, normally I require a salary for this kind of info.
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EA: is 'Rapidly Becoming the Largest Gaming Platform in the World'
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Feels like it's the 1990's again
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Now if they stop making crappy console ports and someone make good and awesome adventure games again, that would make me happy. I just miss that genre a lot. Yeah action action...I think the last 12 games i've scored were action. Would love to work on something like a dark, twisted story ala se7en but with the old school adventure elements...come on! ;)
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For example instead of saying "Very rapidly the PC is becoming the largest gaming platform in the world" they should say "Very rapidly the PC is becoming the largest gaming platform for US". If they just took that approach for everything they said their business intelligence would stop sounding to idiotic.
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Newsflash to Brown, you genius, it always was the largest platform in terms of size and game varieties. Dar!!
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