Peter Moore: Retail Will Have to Fend for Itself
Downloads threaten traditional retail. EA Sports to move from disc-based games
Peter Moore
In the fifth part of his epic Guardian interview Peter Moore, head of EA Sports, has effectively said that retail will have to fend for itself in the face of the growing download market.
Asked whether the increasing volume of downloadable content is the biggest challenge the games industry faces, Moore said, “Yes, and I think it's also the biggest opportunity for us, and I think we're doing it well, much better than the music business did – we're not fighting it, there's an issue with retail – retail are going to have to figure out where they play in the value chain for the consumer. But we have the ability to have direct relationships with our consumers because we can provide them with value everyday – particularly with sports.”
The key words there - “retail are going to have to figure out where they play in the value chain for the consumer.” Translation: 'we can make more money by cutting retail out. Good luck guys!.' There's cut-throat capitalism if we ever saw it. Still, such is the market economy.
Unsurprisingly, Moore also acknowledged that EA Sports will shift away from disc-based goods, pointing out that the company has already done so in Asia. He added, “we might give you the core game for free, but then you start buying downloads, micro-transactions, we'll sponsor some stuff”. This will be a move away from the approach of taking the customer's £49 then leaving them to it, he said.
You can read the full interview here.
Asked whether the increasing volume of downloadable content is the biggest challenge the games industry faces, Moore said, “Yes, and I think it's also the biggest opportunity for us, and I think we're doing it well, much better than the music business did – we're not fighting it, there's an issue with retail – retail are going to have to figure out where they play in the value chain for the consumer. But we have the ability to have direct relationships with our consumers because we can provide them with value everyday – particularly with sports.”
The key words there - “retail are going to have to figure out where they play in the value chain for the consumer.” Translation: 'we can make more money by cutting retail out. Good luck guys!.' There's cut-throat capitalism if we ever saw it. Still, such is the market economy.
Unsurprisingly, Moore also acknowledged that EA Sports will shift away from disc-based goods, pointing out that the company has already done so in Asia. He added, “we might give you the core game for free, but then you start buying downloads, micro-transactions, we'll sponsor some stuff”. This will be a move away from the approach of taking the customer's £49 then leaving them to it, he said.
You can read the full interview here.
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Comments
deleted 19 Sep 2008 14:57
1/2
great idea in theory to give the core game away and charge for D/L but in reality, how many people will pay for those downloads will they be price accordingly and most importantly will taht core game actually contain anything worthwhile,
maybe if you look at Gran Turismo 5, give that away, and then any extra cars, tracks will be charged for, make the incentive to purchase that for the week or month that add challanges and acheivements/trophys for winning in events and meeting certain challanges,
the other way i look at it is the Burnout paradise way i would much rather pay upfront for something and then ove rthe course of 12 months add new features and items to the game for free?
an even better idea?
how about the nextbox or ps4 charges your £150.00 - £250.00 (12.50-20.00 per monnth) anually to own it even £40.00 a month would be good i pay that now for 1 game!, you get the hardware for free on a 12-18 month contract and for the subscription you get unlimited access to games as well, of course the option to purchase hardware and games for a RRP should be there.
maybe if you look at Gran Turismo 5, give that away, and then any extra cars, tracks will be charged for, make the incentive to purchase that for the week or month that add challanges and acheivements/trophys for winning in events and meeting certain challanges,
the other way i look at it is the Burnout paradise way i would much rather pay upfront for something and then ove rthe course of 12 months add new features and items to the game for free?
an even better idea?
how about the nextbox or ps4 charges your £150.00 - £250.00 (12.50-20.00 per monnth) anually to own it even £40.00 a month would be good i pay that now for 1 game!, you get the hardware for free on a 12-18 month contract and for the subscription you get unlimited access to games as well, of course the option to purchase hardware and games for a RRP should be there.
realvictory 21 Sep 2008 18:05
2/2
How about, if they make a good game, I'll buy it, and if they don't, I won't?
It would be a good idea for, say FIFA, to simply upgrade the game to the current year, because we all know it's the same game engine with some updates! If they did, though, I hope they won't make you buy all the updates in between to get to the current year!
I care more about quality, than quantity, though. Imagine Tetris where you bought new blocks - it would add nothing to the game, because it's already excellent. With the new way of thinking, you would buy Tetris with missing blocks, and have to buy them separately. Where's the incentive to me in this plan?
Also, I don't want a game that never ends - I don't have time for that sort of rubbish. I prefer a game which gives you 10 minutes of fun, but intense fun, as opposed to something that encourages you to keep paying, and to keep playing, until you inevitably get bored of it.
It would be a good idea for, say FIFA, to simply upgrade the game to the current year, because we all know it's the same game engine with some updates! If they did, though, I hope they won't make you buy all the updates in between to get to the current year!
I care more about quality, than quantity, though. Imagine Tetris where you bought new blocks - it would add nothing to the game, because it's already excellent. With the new way of thinking, you would buy Tetris with missing blocks, and have to buy them separately. Where's the incentive to me in this plan?
Also, I don't want a game that never ends - I don't have time for that sort of rubbish. I prefer a game which gives you 10 minutes of fun, but intense fun, as opposed to something that encourages you to keep paying, and to keep playing, until you inevitably get bored of it.