Much has been made of the rise in digital revenues for video game makers of late. Despite Activision losing 100,000 subscribers in its fourth financial quarter last year, it's still making $15 a month from 10.2 million subscribers. EA has launched Star Wars: The Old Republic and has made $50million alone from FIFA 12 DLC.
This, however, did not impress Sunit Gogla, an analyst with the Morningstar company who stated, "Management is trying to offset the revenue and profit loss by extracting additional dollars from existing franchises via the sale of high-margin digital add-ons that increase customer engagement.
"We agree that such add-ons offer an attractive profit opportunity, but the magnitude of these sales is far from sufficient to replace lost revenue and profits."
Lucky for Activision that it's already added 1.5million people paying $4.99 each per month for Call of Duty Elite. And as for EA, well, two million SWTOR subs isn't bad going. We reckon digital and DLC probably is the way to go.
And when we say 'Probably' we mean 'Absolutely Definitely'.
Source: IBT
This, however, did not impress Sunit Gogla, an analyst with the Morningstar company who stated, "Management is trying to offset the revenue and profit loss by extracting additional dollars from existing franchises via the sale of high-margin digital add-ons that increase customer engagement.
"We agree that such add-ons offer an attractive profit opportunity, but the magnitude of these sales is far from sufficient to replace lost revenue and profits."
Lucky for Activision that it's already added 1.5million people paying $4.99 each per month for Call of Duty Elite. And as for EA, well, two million SWTOR subs isn't bad going. We reckon digital and DLC probably is the way to go.
And when we say 'Probably' we mean 'Absolutely Definitely'.
Source: IBT
Companies:
Electronic Arts
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