EA Transitioning To Download Only Business Model
Electronic Arts is gradually moving away from a retail boxed physical media distribution model to an online only one. (Online distribution is often referred to as "digital" distribution, or "digital download", but this is incorrect - have you ever seen analog software? No such animal). EA are making more money than ever using their Origin and also Valve's Steam online distribution platforms, in the region of a massive $2 billion. Due to this success, EA's boss, Frank Gibeau has stated in an interview with gamesindustry international that EA will soon move to an online only distribution model:
"It's in the near future. It's coming. We have a clear line of sight on it and we're excited about it. Retail is a great channel for us. We have great relationships with our partners there. At the same time, the ultimate relationship is the connection that we have with the gamer. If the gamer wants to get the game through a digital download and that's the best way for them to get it, that's what we're going to do. It has a lot of enhancements for our business. It allows us to keep more that we make. It allows us to do some really interesting things from a service level standpoint; we can be a lot more personalized with what we're doing". However, EA won't be abandoning the traditional retail channel. The full interview is available at the link below.
EA isn't about to abandon retail and its valuable retail partners tomorrow, though.
"But if customers want to buy a game at retail, they can do that too. We'll continue to deliver games in whatever media formats make sense and as one ebbs and one starts to flow, we'll go in that direction," Gibeau continued. "For us, the fastest growing segment of our business is clearly digital and clearly digital services and ultimately Electronic Arts, at some point in the future - much like your question about streaming and cloud - we're going to be a 100% digital company, period. It's going to be there some day. It's inevitable."
Posted by | Wed, Jul 04, 2012 - 04:09 PM