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EA: The PC is 'Rapidly Becoming the Largest Gaming Platform in the World'

by Nick Breckon, May 05, 2009 4:32pm PDT

During 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.




Comments

34 Threads | 96 Comments

  • PC online is where the money is at. its the console packaged goods biz that sucks. just look at these numbers and you decide.

    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!






  • I think that this new "nintendo" generation is very very loud and that was/is the main reason why some companyes made huge mistake and marked PC gaming dead; or start with terrible console ports (where you can resign the basic keybinding or moronic checkpoints that are complitely OUT of PC games, because people who play on PC have a tons of space for save not like some tiny memory card on some console)...
    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 :-)

  • I think that this new "nintendo" generation is very very loud and that was/is the main reason why some companyes made huge mistake and marked PC gaming dead; or start with terrible console ports (where you can resign the basic keybinding or moronic checkpoints that are complitely OUT of PC games, because people who play on PC have a tons of space for save not like some tiny memory card on some console)...

    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 :-)

  • I think that this new "nintendo" generation is very very loud and that was/is the main reason why some companyes made huge mistake and marked PC gaming dead; or start with terrible console ports (where you can resign the basic keybinding or moronic checkpoints that are complitely OUT of PC games, because people who play on PC have a tons of space for save not like some tiny memory card on some console)...

    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 :-)