Is Electronic Arts planning to move away from releasing retail and consoles games next year?
According to an article on CNBC, EA has already been slashing the number of new console and PC games it releases each year going from 67 games in 2009 to just 22 games this year.
The article also says that next year EA will release only 14 packaged game, but will be releasing more than 30 mobile and social games that are either free or cost far less than the $59.99 cost of Triple-A console and PC video game titles. Most of EA's mobile and social games use micro-transactions as a business model charging gamers for in-app purchases rather than the game.
"Mobile games are as profitable as console games," EA's Vice President of "All Play" Nick Earl told CNBC. "The costs are actually less and the revenues can be as much if not greater than a console product."
According to the article, "EA's mobile business is small but growing: Revenue grew 59 percent to $88 million last quarter, driven by a 120 percent increase from smartphones and tablets. Many of EA's hit mobile titles are based on popular console games, like "Madden," "The Simpsons," and "FIFA."
In a recent interview with The Guardian, Peter Parmenter, head of OEM and new platforms for EMEA and APAC at EA Mobile, said that EA is brining "the best brands" to mobile devices for gamers, while the company transitions its business model.
"Over the past four years, we have been transitioning our business from feature phones to smart phones and tablets and from paid, one-time downloads to free-to-download models that are monetised by additional in-game content," Parmenter told The Guardian. "Our mobile business complements EA's core business by bringing the best brands (The Sims, Fifa, Need for Speed, etc) to mobile devices in ways that make sense for that platform and exposes newcomers to games."
He also says that the freemium business model will allow EA to reach a wider audience. Parmenter says, "the continued rise in freemium as a mobile business model has been great news for customers who face no barrier to entry and for publishers, it means we're able to introduce our brands to a much broader audience."
What do you think of EA's mobile strategy? Do you think the lower number of games released on PC and consoles will hurt EA? Do you think the reason EA is releasing less console games is because the company is waiting for the next generation? Comment in the section below...
