EA will "be a 100% digital company, period"

3343 Views 34 Posts MMGN.com
www.gamesindustry.biz/...

So we have a major publisher saying that physical media statistics are worthless, as EA Labels boss Frank Gibeau says here.

Basically, he thinks that looking internally is worthless, and that it needs to look at expansion over multiple platforms.

This would explain why they are now on "14 or 15" different platforms, rather than just a few major platforms.

So what do we think? Now a publisher is saying digital is inevitable. But is there a business model in place? Activision Blizzard is looking for a buyer as revenue has fallen. Is a crash on the horizon?
I don't mind.. But they will loose customers, not everyone has good net
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Completely agree with him but the repercussions for retail stores is massive, best buy, GameStop and Walmart in the states will have something to say about it.
EB, Jb etc here would struggle big time if companies went 100% digital. They've already taken a missive hit in profits from the introduction of iTunes.

Matster said: Completely agree with him but the repercussions for retail stores is massive, best buy, GameStop and Walmart in the states will have something to say about it.
EB, Jb etc here would struggle big time if companies went 100% digital. They've already taken a missive hit in profits from the introduction of iTunes.



It's very scary, because there are similar issues for media. Digital is great and accessible but assets cost less online and so does the audience. The consumer is also worth less because there is greater amplification.

It's an interesting time to see how media, retail, manufacturers will counter the rise of digital commerce and media.
This will go well.

iamtom said: This will go well.



When do my threads never go well :P
Pact
+

iamtom said: This will go well.



8 years for now; Thats not gone well!

From memory their last sale was a "Get 500000 likes on facebook and BF3 will be 30% off. GG EA. Go **** yourself.

Pact said:

iamtom said: This will go well.


8 years for now; Thats not gone well!
From memory their last sale was a "Get 500000 likes on facebook and BF3 will be 30% off. GG EA. Go **** yourself.



Yeah well that's what I mean. You need to reach so many more people on the internet to even consider making a product on a promotion. Retail, print, they're different, right?
Haven't read article, no time. But might read it later.

Did they say by when?

I'm thinking about costs. Let's say the average game title's life span is 5 years. To manufacture plastic, mainly in the first 2 years would be peanuts to the server maintainence for thousands and thousands of Terabytes. And then over 5 years would cost more than plastic.

But then you save money in shipping, packaging and such. I still think online would be more expensive to provide?

Then again, Steam seam to be on the right track and that's something I don't use. I could be very wrong?

I also reckon DD only will have more to do with what console companies decide to do in the future, if there is one. Maybe the Wii U will be the only last surviving physical media format system?

BBking said:
I'm thinking about costs. Let's say the average game title's life span is 5 years. To manufacture plastic, mainly in the first 2 years would be peanuts to the server maintainence for thousands and thousands of Terabytes. And then over 5 years would cost more than plastic.
But then you save money in shipping, packaging and such. I still think online would be more expensive to provide?
Then again, Steam seam to be on the right track and that's something I don't use. I could be very wrong?
I also reckon DD only will have more to do with what console companies decide to do in the future, if there is one. Maybe the Wii U will be the only last surviving physical media format system?



Well, what if game sizes reduce, storage becomes affordable?

I think it's probably still at least 5 years off, at least until cloud starts become a little more relevant in the scene.

Yeah I agree that consoles will drive this change. PC is too...niche? Unaffordable? Not especially attractive considering upgrades, size, cost etc.?
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Skyrim on the PC was a 6-7GB download. It is indeed possible.

Pact said: Skyrim on the PC was a 6-7GB download. It is indeed possible.



I'm just not daunted by a download size like that anymore. I guess once everyone thinks like that, we'll be in a digital distribution world!
Azza
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mp1st.com/...

Sony is looking like they will move to the cloud too.
In the position I'm in now where I have quick internet and large monthly download limit I'm not fussed if this is the direction that the industry is going. I'm already download most of my games now anyway through Steam or Origin. It's also convenient having all my games just a click away from starting up, also good having an account with all these games on so if you ever build a new computer all your games are there and can be re-downloaded over and over.
Having said that my tune might change if I end up somewhere with a crap connection and limited monthly quota. Digital download is where the industry is heading but not everyone is setup for it, and it's not always a case of money some areas just don't have good internet and probably wont get it for a while.
I see down the line, far down the line, everything will be digital. But I hope it doesn't happen any time soon. :S

Guyver said: In the position I'm in now where I have quick internet and large monthly download limit I'm not fussed if this is the direction that the industry is going. I'm already download most of my games now anyway through Steam or Origin. It's also convenient having all my games just a click away from starting up, also good having an account with all these games on so if you ever build a new computer all your games are there and can be re-downloaded over and over.
Having said that my tune might change if I end up somewhere with a crap connection and limited monthly quota. Digital download is where the industry is heading but not everyone is setup for it, and it's not always a case of money some areas just don't have good internet and probably wont get it for a while.


See I'm the same as guyver.. Fast net lots of gbs so I'm happy and that's why I'm happy but there's a lot of gamers that don't have that :S
more margins to be had in digital distribution. No wonder they've been trying to cut out the retail stores but personally its going to backfire on them.

My brother on the other hand, quite likes buying crap off the digital stores because of his internet speeds, im not the same though as im currently on a crap internet line :S

so there's still a need for retail so are they trying to threaten retail stores.

punk said: more margins to be had in digital distribution. No wonder they've been trying to cut out the retail stores but personally its going to backfire on them.


Not only that, but remove the competition and there is no longer any need to drop prices. Everything will be sold at RRP.

stublu said:

punk said: more margins to be had in digital distribution. No wonder they've been trying to cut out the retail stores but personally its going to backfire on them.


Not only that, but remove the competition and there is no longer any need to drop prices. Everything will be sold at RRP.



If RRP was reasonable there wouldn't be a problem. $110 for a game is ridiculous. Try $60 flat rate and you've got me sold. As if they couldn't do it, look how much cheaper iTunes is, $15 for an album, used to pay up to $40 in stores. They could always have online retailers also.
I'm all for digital distribution, and love it or hate it, it is the future. However @stublu is right, RRP will become the only price.

IAMColonel said:

stublu said:

punk said: more margins to be had in digital distribution. No wonder they've been trying to cut out the retail stores but personally its going to backfire on them.


Not only that, but remove the competition and there is no longer any need to drop prices. Everything will be sold at RRP.


If RRP was reasonable there wouldn't be a problem. $110 for a game is ridiculous. Try $60 flat rate and you've got me sold. As if they couldn't do it, look how much cheaper iTunes is, $15 for an album, used to pay up to $40 in stores. They could always have online retailers also.



I remember seeing the first Xbox 360 games for $110 [Facepalm]

But I guess that's what it's like for every new console.
i hope your wrong

Heller said: I'm all for digital distribution, and love it or hate it, it is the future. However


Completely agree heller.

On psn right now games are equal or more then the physical copy to buy, which is nonsense. It needs to be cheaper for DD to take off
I hate DD and if they are going that way only, I will not be buying any EA games anymore.
God i hope not, imagine 2 games out same time both 30 gig.
 
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