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EA is now a predominantly digital company

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Hardcore gamers will all have a tale to tell everyone how much they despise Origin; and anyone with an iPad can tell you that there are a ton of EA freemium games on the AppStore. On top of that just about every one of EA’s AAA games offer DLC and microtransactions. 

But until today I still saw EA Games as a company that makes most of their money from retail sales through places like BT Games and Gamestop. That, however, that isn’t actually true.

According to an interview Venturebeat held with the president of EA Labels, Frank Gibeau, EA Games has decided to go all in with their digital offerings and it isn’t hard to see why.

Over the last quarter a whopping 76% of their revenue came directly through digital sales. That’s an incredible amount and something that must be worrying the traditional gaming retailers who used to be seen as the most important aspect of the gaming industry.

Still in South Africa the retailers are easily classified as the most important members in the industry and then everyone else lines up behind them. Moving forward retailers will still be important in getting that initial disc into the console before EA starts profiteering of the digital sales. However with both the new consoles being strongly digitally focussed it does appear that gaming stores could quickly go the way of the video rental store and it may be a good time for these guys and girls to start pivoting towards a new business model.

Last Updated: July 24, 2013

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