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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

49 Comments

  1. Lardus

    July 24, 2013 at 08:41

    “start pivoting towards a new business model” – How about they download the steam games and allow people to come and copy their “backup” folder so we don’t have to download 20GB every time the game has a patch? They would need to make sure the guy actually has a Steam account before giving it to them, but hey they wouldn’t be able to play it without an account and the game registered in any case, would they? Wow, a post from me not about the ION!!

    Reply

    • RinceWind

      July 24, 2013 at 08:42

      I am in shock, a constructive post not about a woman’s boobs? WTF?! *Runs to get more coffee 😉

      Reply

      • Lardus

        July 24, 2013 at 08:55

        I am not JUST about the boobs…there are booties as well! But now that I have proper internet (had a speed test of 28Mb/s this weekend), I am getting more serious about the gaming. Funny how I am mostly playing XCom single player, but I give MechWarrior online, Rift and D3 a bit of time too! GAMING!!

        http://www.speedtest.net/result/2852908295.png

        Reply

        • KingKappie

          July 24, 2013 at 08:58

          F*** i need your internet please adopt me (im only 24)

          Reply

          • Lardus

            July 24, 2013 at 08:59

            Telkom Home/Business LTE rocks! Now I do not need to go outside and interact with the human filth again until the mother ship arrives mwuhahahahaaaa!

        • Sir Rants-a-Lot Llew

          July 24, 2013 at 08:59

          We are not friends anymore *sulks in corner*

          Reply

        • RinceWind

          July 24, 2013 at 09:00

          WTF kindda internet do you have! Also playing Xcom right now, which is why I am tired most days…

          Reply

          • Lardus

            July 24, 2013 at 09:01

            Played until 2 hours after I wanted to sleep. Slingshot is ticking me off, sending those huge mo-fos after me before I am ready 🙁

          • Admiral Chief Groot Wors

            July 24, 2013 at 09:07

            Dude, you winning there?

          • RinceWind

            July 24, 2013 at 09:15

            I am indeed! But my bloodshot eyes right now means I am failing at work…

          • Lardus

            July 24, 2013 at 09:52

            It is a fun, but sometimes frustrating game!! 90% chance to hit means nothing lol

          • RinceWind

            July 24, 2013 at 10:17

            Tell me about it! I had a 92% shot last night that was about as effective as if I had put the bloody laser rifle in my mouth and puller the trigger…

          • Lardus

            July 24, 2013 at 10:23

            I never used the shotguns, but this week my assault guys get the best armour and rush those big guys, shove the shotgun down their mouths and rapid fires the mofos! Good game, but it requires a bit more depth before it can be compared to the original. And those 3 abduction sites thing gets irritating lol

        • FoxOneZA - X-Therminator

          July 24, 2013 at 09:13

          “Faster than 97% of ZA”!!!

          I read that!!!!
          Elitist!!!

          Reply

          • Lardus

            July 24, 2013 at 09:52

            Bow to the power of the elite of the Master Race!

        • Skyblue

          July 24, 2013 at 16:03

          My connection is much slower than that but I go through about 500GB of data per month. What would that cost with LTE ?

          Reply

          • Lardus

            July 24, 2013 at 16:08

            They only have 10, 20 and 50GB packages with top-ups. My guess is that 500GB would be more than my monthly salary!

    • Sir Rants-a-Lot Llew

      July 24, 2013 at 08:43

      Congrats on your new found freedom 😛

      Reply

      • Lardus

        July 24, 2013 at 08:57

        Reply

  2. Ultimo_Cleric N7

    July 24, 2013 at 08:42

    They still sell hard copy games, but I imagine this is why digital sales are so big……..

    Reply

    • Sir Rants-a-Lot Llew

      July 24, 2013 at 08:46

      The only reason digital sales are so high is because DLC and extra content is only digital. There is no alternative. So naturally the scales would indicate “more digital sales” which is a rather unfair comparison to do as their is no alternative to getting DLC.

      But I still lol at your picture!

      Reply

  3. Sir Rants-a-Lot Llew

    July 24, 2013 at 08:43

    I’m going to go out on a limb here and say that the digital sales are mostly dominated by DLC and microtransactions.

    What would happen if they had to check digital sales vs physical sales but less DLC and “extras”. Would the stats still be more digital?

    Reply

  4. RinceWind

    July 24, 2013 at 08:45

    Agreed. This is inevitable. As South Africa improves it’s infrastructure places like BT are going to start loosing out, it is going to happen. A shame, because I love chatting with the okies down at the link.

    Reply

    • Umar Kiiroi Senk?

      July 24, 2013 at 08:59

      Indeed, always fun to chat to the BT games dudes, though many of just don’t take anything seriously lol

      Reply

      • RinceWind

        July 24, 2013 at 09:01

        Haha! You would’t either if you had to speak to grandmothers about how great the Kinect Han Solo dance off is a great gift for a 12 year old…

        Reply

        • Umar Kiiroi Senk?

          July 24, 2013 at 09:05

          Haha true and as gamers that know better they wish they could recommend something good, but alas they have to explain that Dance Central is the most hype game that got released. GOTY

          Reply

  5. Umar Kiiroi Senk?

    July 24, 2013 at 08:54

    In all honesty I love the whole digital games model (EXCLUDING IAP and cash cow DLC and DRM) I think Digital games are amazing, though the world is not a point where everyone can go along with Digital. Imo, Digital should exist with physical, instead of pushing one or the other,let them live together in harmony.

    Digital is a great way to bring titles over that necessarily wouldn’t have made it here such as Way of The Samurai 4 for example. not only that but we get awesome deals like free psn+ games as well as it makes life SOOOOO much easier to get games that are no longer available, do you know how hard it is to get a physical copy of Tales of Vesperia without importing! … But as I said, physical and Digital should exist together , give people a choice, especially those that cannot go the Digital route.

    Reply

    • CypherGate

      July 24, 2013 at 09:09

      I agree!

      Reply

    • TiMsTeR1033

      July 24, 2013 at 09:45

      I agree they should exist together but I mean if we had the broadband of the rest of the world wouldnt digital copies have one issue….. Space? a harddrive is only so big and if you have all these digital games when you have no more space do you just delete that game which costed xy and z or is there a way to keep it? does it stay on cloud servers to download again?

      Reply

      • Umar Kiiroi Senk?

        July 24, 2013 at 09:46

        Yup, with PSN, if you have bought and downloaded the game it is yours, if you delete it you can just re download it again.

        Reply

  6. RinceWind

    July 24, 2013 at 09:09

    I’m quite curious to see how the marketing model will have to change if shops like BT close…

    Reply

    • FoxOneZA - X-Therminator

      July 24, 2013 at 09:26

      These shops are keeping prices stiff recently. Gaming sales are sales anymore. They are just the usual price drops. Recently I’m purchasing my games off XBL, PSN and Ninty eShop.

      Reply

  7. FoxOneZA - X-Therminator

    July 24, 2013 at 09:24

    Physical is becoming a cumbersome medium to distribute for movies, DVD’s and games. Gaming sales in shops aren’t sales anymore. It’s being over a year since a gaming sale actually had games for cheap. The cheap games are online but you have to bear the bandwith costs.

    Reply

  8. FoxOneZA - X-Therminator

    July 24, 2013 at 09:29

    And the other side of the coin is that EA is pushing up the prices of physical copies.

    Reply

  9. Purple_Dragon

    July 24, 2013 at 09:31

    I still love and will always love physical copies of games. I just really enjoying going down to AWX at Brightwater, checking the games out and chatting to the guys there. I also like seeing all my games in their glory on my bookcase.

    Reply

    • RinceWind

      July 24, 2013 at 09:43

      Me too! I have a nice selection I can look at when feeling down #alwaysalone and it isn’t the same with having them sitting on my HD.

      Reply

  10. Lourens Jordaan

    July 24, 2013 at 09:51

    I’ve said it before and I’ll say it again. This is why EA loves the secondhand market. More downloadable sales!!!

    Reply

  11. InsanityFlea

    July 24, 2013 at 10:26

    Origin keeps popping up telling me that my account is in use (login anyway?). NO SHIT! I’m playing BF3!!!!!!!!!!!! I hate origin personally, if they fix the bugs maybe not so much but if BF4 was on steam I wouldn’t bat an eyelid.

    Reply

    • That Super Twit

      July 24, 2013 at 13:21

      Yeah, Origin can be a pain. Have to use it to play MOH:Warfighter.

      Reply

    • Skyblue

      July 24, 2013 at 16:05

      Agreed on Origin. Everytime they send me that survey on “how likely would you be to recommend Origin to someone?” I “zero-rage” that shit and submit it.

      Reply

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