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Saty
Member
(11-17-2015, 02:08 PM)
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EA's CFO, Blake Jorgensen, had a chat at yesterday's Global Technology Conference. You can hear it here: https://cc.talkpoint.com/ubsx001/111...ity=40_UQQX1EY

Aside from the news about EA making an open-world action game, the highlights are:
- PS4\XB1 user-base on track to 50-51M at the end of 2015.
- Attach-rate is about the same as the previous gen. However, extra content sales have gone up significantly.
- Digital copy margins are over x2 the margins of a physical copy.
- Last quarter for EA full-game downloads represented 20% of all XB1\PS4 copies. Expect the share to grow to 40% over the next 3-4 years.
BokehKing
Banned
(11-17-2015, 02:09 PM)
But me and all my friends buy digital, numbers must be wrong


/s



Did they release any numbers for EA access?
Y2Kev
TLG Fan Caretaker Est. 2009
(11-17-2015, 02:10 PM)
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20% right from a horse's mouth. But wow at the margin expansion. Extra content sales show how publishers are really monetizing core users. Pretty smart and maybe cynical. I'm not sure.
leatherhat
Member
(11-17-2015, 02:10 PM)
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20 percent digital? That's much higher than I would have thought, very good sign for software sales.
Hoho for breakfast
Member
(11-17-2015, 02:10 PM)
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If you could "resell" or "trade in" digital sales would probably reach 40% next year. It's usually the only thing that really holds me back from going 100% digital.
Nightengale
Member
(11-17-2015, 02:10 PM)
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Don't sell them at same price then if margins are that much better.
sense
Member
(11-17-2015, 02:11 PM)
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can't touch the 90% digital ratio for halo 5 tho!!!
nubbe
Member
(11-17-2015, 02:11 PM)
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well, duh
DD has no overhead compared to all the things that must be executed to get a physical copy out the door

Good to know prices are 2x too high
Kosma
Banned
(11-17-2015, 02:12 PM)
Margin makes sense since the 15 bucks for the shop is now 15 bucks for the pub.

Originally Posted by Hoho for breakfast

If you could "resell" or "trade in" digital sales would probably reach 40% next year. It's usually the only thing that really holds me back from going 100% digital.

Yeah if I knew I could "sell" my copy after a month with 10 bucks loss I'd be game.
Giriath_89
Member
(11-17-2015, 02:12 PM)
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Originally Posted by Hoho for breakfast

If you could "resell" or "trade in" digital sales would probably reach 40% next year. It's usually the only thing that really holds me back from going 100% digital.

Or digital could just be cheaper than physical.
leatherhat
Member
(11-17-2015, 02:12 PM)
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Originally Posted by Nightengale

Don't sell them at same price then if margins are that much better.

There would be a retailer revolt if they did that.
Welfare
Member
(11-17-2015, 02:12 PM)
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Originally Posted by Nightengale

Don't sell them at same price then if margins are that much better.

This just means they will not do that lol. Especially if they expect DD to increase to 40% by 2019/2020.
Syrus
Banned
(11-17-2015, 02:12 PM)

Originally Posted by Nightengale

Don't sell them at same price then if margins are that much better.


Thats why I supported Witcher 3 at 10% off digital. Better then 0%
Dirtyshubb
Member
(11-17-2015, 02:12 PM)
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Its times like this that show how full of shit publishers are, when asked why digital games are priced so high they come out with excuses like - physical stock levels, regional prices etc. But it's clear they just want a bigger margin.

EA are especially bad as they are one of the worse on the UK psn, hell the ultimate Battlefront edition is 105!!!
Quonny
Member
(11-17-2015, 02:13 PM)
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If you'd sell your $60 games for $50 (hell, even $54), and throw in a stupid theme or something else that costs you next to nothing I bet that number would be a lot higher.
Xater
Member
(11-17-2015, 02:13 PM)
How about you give your savings forward to the consumer so the digital prices are not shit? Oh you won't? Of course not!
Hamster Plugin
Member
(11-17-2015, 02:13 PM)
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With high margins like this, they really should make digital copies just a little bit cheaper than the retail RRP. Sony has done this in EU regions for a few years now, all Playstation exclusives are 60 on PSN and 70 RRP on retail (although retailers tend to mark them down to 55-60 anyway)
Coxy100
Banned
(11-17-2015, 02:15 PM)

Originally Posted by Hoho for breakfast

If you could "resell" or "trade in" digital sales would probably reach 40% next year. It's usually the only thing that really holds me back from going 100% digital.

Not for me - nothing beats seeing that lovely game box in my cupboard. I'm a collector, and always will be.
Conduit
Banned
(11-17-2015, 02:15 PM)
That's bullshit! All of my friends bought games digitally
Xater
Member
(11-17-2015, 02:15 PM)

Originally Posted by Hamster Plugin

With high margins like this, they really should make digital copies just a little bit cheaper than the retail RRP. Sony has done this in EU regions for a few years now, all Playstation exclusives are 60 on PSN and 70 RRP on retail (although retailers tend to mark them down to 55-60 anyway)

Digital copies for 49,99 would be a super fair price. Not gonna happen though because profits.
kiguel182
Member
(11-17-2015, 02:15 PM)
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That percentage could be bigger if they had better digital printing for sure.

I wish I could buy everything digital but it's hard to justify at 70 euros a game and even worse when physical games are cheaper.
Guymelef
Member
(11-17-2015, 02:16 PM)
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leeh, are you ok?
nico1982
Member
(11-17-2015, 02:16 PM)

Last quarter for EA full-game downloads represented 20% of all XB1\PS4 copies. Expect the share to grow to 40% over the next 3-4 years.

Next gen confirmed to be disc based.
nib95
Banned
(11-17-2015, 02:16 PM)
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Double the margins just further illustrates how much of a rip off digital is. Higher margins, no resale or trade in, no physical art of case etc. The least they could do is price digital copies competitively, or on par with retail, instead they're generally always higher priced, sometimes by appreciable margins.
Saty
Member
(11-17-2015, 02:17 PM)
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Originally Posted by devilsadvocat


Did they release any numbers for EA access?

He said they don't share sub numbers because Wallstreet would want to act on it immediately or something like that.
Diablohead
Member
(11-17-2015, 02:17 PM)
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Unless europe suddenly get matched digital prices to retail store prices I can't see 40% being the norm.

ALso amazing that EA of all people say this because they charge 15 extra for their digital goods in the UK.
Zaph
Member
(11-17-2015, 02:18 PM)
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Originally Posted by EA

Digital margins over x2 physical

Keep using those Authorised Retailers guys, no need to motivate publishers into pricing competitively. I'm sure those 50 digital copies will normalise with retail eventually...
jelly
Member
(11-17-2015, 02:18 PM)
So, can we have cheaper digital prices please.
Xando
Member
(11-17-2015, 02:18 PM)
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Originally Posted by Saty

Aside from the news about EA making an open-world action game, the highlights are:
- PS4\XB1 user-base on track to 50-51M at the end of 2015.

This seems a little low with sony already being at 27-27.5 million PS4s in the last quarter (29 million shipped) and the holiday season coming now, doesn't it?

Originally Posted by Xater

How about you give your savings forward to the consumer so the digital prices are not shit? Oh you won't? Of course not!

Why would they when people are willing to buy games for 10-20€ more than retail
40% is extremly optimistic when they scam europeans for so much money compared to retail
Finale Fireworker
Member
(11-17-2015, 02:19 PM)
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I wonder if extra digital content means traditional DLC or microtransactions. I mean, it's probably both.

But I like traditional DLC when it's good and I've always been one to buy all the story DLC for a game before I play it. I have no qualms with paying extra if it was made extra.

But if microtransactions are becoming a successful business model on consoles, we're in trouble. Because that's not just extra content, that's a design philosophy. It directly impacts the design of the game and I don't think many/any games ever benefit from that.

I remember Dead Space 3's crafting system was beyond insulting. And look at MGSV.
Klart
Member
(11-17-2015, 02:19 PM)
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Originally Posted by Nightengale

Don't sell them at same price then if margins are that much better.

Digital is even more expensive here...
Jumeira
Member
(11-17-2015, 02:20 PM)

Originally Posted by jelly

So, can we have cheaper digital prices please.

Not sure if thats possible, wouldn't this undermine brick and mortar stores? Feels like its against competitive regulations...but this is my gut feeling, would be nice to find out.
jroc74
Phone reception is more important to me than human rights
(11-17-2015, 02:20 PM)
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Originally Posted by devilsadvocat

But me and all my friends buy digital, numbers must be wrong


/s



Did they release any numbers for EA access?

Yes they are wrong because I bought alot of digital games over the last 2 years. Me and 9 of my friends. /s

If that 40% does happen it really will be hard to say what the actual sales are. Unless it starts getting tracked better. Or the mathematicians will need to step up.
Gipsy Danger
Member
(11-17-2015, 02:22 PM)
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Originally Posted by Kosma

Margin makes sense since the 15 bucks for the shop is now 15 bucks for the pub.

Except the shop still takes a cut, but the shop is Sony or Microsoft. EA obviously have their own PC store so it's not an issue there.
BokehKing
Banned
(11-17-2015, 02:22 PM)

Originally Posted by Saty

He said they don't share sub numbers because Wallstreet would want to act on it immediately or something like that.

Odd considering the switch Activision and Microsoft made to only talking subscription numbers now
Kyougar
Member
(11-17-2015, 02:23 PM)
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Originally Posted by Y2Kev

20% right from a horse's mouth. But wow at the margin expansion. Extra content sales show how publishers are really monetizing core users. Pretty smart and maybe cynical. I'm not sure.

But how long does the Core user want something like that? We have a great "Real-Life-Study" where this will all lead to.

Look at the Japanese Otaku Culture. This is a Core spending Group that gets heavily pandered to with Games, Music, Manga and Anime. This group is shrinking because the content providers are doubling down on the pandering and "normal" spenders are driven away or dont want to be associated with the current market.

So if the big Publishers want to milk their customer more (or in PR speak, wants the user to spend more on extra content), they will shrink their customerbase.
Brohan
Member
(11-17-2015, 02:23 PM)
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Originally Posted by Klart

Digital is even more expensive here...

Yeah over here it's the same..

Mediamarkt always sells new games for a very nice price on the first week after a game releases.

Example: Black Ops 3 was 53 at mediamarkt and a whopping 70 on PSN.
Kill3r7
Member
(11-17-2015, 02:24 PM)
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Originally Posted by Jumeira

Not sure if thats possible, wouldn't this undermine brick and mortar stores? Feels like its against competitive regulations...but this is my gut feeling, would be nice to find out.

Yes it would undermine B&M stores but it is not against any competitive regulations. PC games have been doing this for a while now.
LiquidMetal14
hide your water-based mammals
(11-17-2015, 02:24 PM)
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And when do we get discounts for digital now?

Every major console or PC vendor who sells digital needs to parity price. I'm tired of paying 60 for digital and physical being the same price. Especially when you get download codes and can't even use discs to install on some of these games these days.

Digital needs to be $10 cheaper.
BokehKing
Banned
(11-17-2015, 02:25 PM)

Originally Posted by Xando

This seems a little low with sony already being at 27-27.5 million PS4s in the last quarter (29 million shipped) and the holiday season coming now, doesn't it?

Xbox is not exactly taking off outside the US, and Sony could only carry so much on its back

Number seems reasonable
Diprosalic
Banned
(11-17-2015, 02:25 PM)
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Originally Posted by Xando

This seems a little low with sony already being at 27-27.5 million PS4s in the last quarter (29 million shipped) and the holiday season coming now, doesn't it?

seems about right with XB1 at 13, wouldn't that mean 10 million more for the rest of the year?
which mostly would come from PS4.
pa22word
Member
(11-17-2015, 02:26 PM)
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Originally Posted by jelly

So, can we have cheaper digital prices please.

As soon as you guys stop buying physical games it will happen.

Valve could get away with shoving their middle finger at retailers because when it came to deals because they didn't need them anymore. Right now, console publishers are too attached at the hip to retailers to dare pissing them off by pricing digital versions at less than msrp less their product be pulled from the shelves and loose 80% of their revenue stream.

It's the main reason digital deluxe editions happen instead of mark offs like you see in the pc space. Once the revenue tips into the 50s you'll start to see better deals on digital console games. Until then you're all at the mercy of GameStop and co.

And please don't bring up the tired competition argument. As long as there's two console manufacturers there will remain competitive prices. Not to the extent you see on pc of course, but it's not going to be the $100 game hollocaust like some manual sniffers like to make it out.

Those of you that don't like it or "won't support it" will be in for a rough ride though, as it is the future of games production 100%.
BokehKing
Banned
(11-17-2015, 02:27 PM)

Originally Posted by LiquidMetal14

And when do we get discounts for digital now?

Every major console or PC vendor who sells digital needs to parity price. I'm tired of paying 60 for digital and physical being the same price. Especially when you get download codes and can't even use discs to install on some of these games these days.

Digital needs to be $10 cheaper.

Why would they when they know they don't have to?

Seriously, from a business perspective, why?
Because it's the "nice thing to do?"
Come on
People will still go to Best Buy and purchase physical games
I'm 100% digital on Xbox and Ps4, I'm apparently in the minority, so why cater to me
jroc74
Phone reception is more important to me than human rights
(11-17-2015, 02:28 PM)
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Originally Posted by Y2Kev

20% right from a horse's mouth. But wow at the margin expansion. Extra content sales show how publishers are really monetizing core users. Pretty smart and maybe cynical. I'm not sure.

Its business....and seems like a good move for those that do it. If there ever is a chance any gen there will be contraction it makes even more sense to do it.

Originally Posted by Saty

EA's CFO, Blake Jorgensen, had a chat at yesterday's Global Technology Conference. You can hear it here: https://cc.talkpoint.com/ubsx001/111...ity=40_UQQX1EY

Aside from the news about EA making an open-world action game, the highlights are:
- PS4\XB1 user-base on track to 50-51M at the end of 2015.
- Attach-rate is about the same as the previous gen. However, extra content sales have gone up significantly.
- Digital copy margins are over x2 the margins of a physical copy.
- Last quarter for EA full-game downloads represented 20% of all XB1\PS4 copies. Expect the share to grow to 40% over the next 3-4 years.

I think this is why its hard now to look at hardware sales and talk about contraction. Ppl have mentioned it over the last few months that revenue is up despite the hardware sales not looking likely to match last gen for home consoles.

And I'm curios about this vs last gen:

Aside from the news about EA making an open-world action game, the highlights are:
- PS4\XB1 user-base on track to 50-51M at the end of 2015.

jelly
Member
(11-17-2015, 02:29 PM)

Originally Posted by Jumeira

Not sure if thats possible, wouldn't this undermine brick and mortar stores? Feels like its against competitive regulations...but this is my gut feeling, would be nice to find out.

I've always wondered, does it really matter. In the UK, retail is basically supermarkets, Game 'lol' and online retailers like Amazon who are already below digital pricing. I don't think it would change things whatsoever if digital pricing was cheaper. It's basically an excuse to rip off consumers. If retail died tomorrow, digital prices would still be extortionate. The only reason they aren't cheaper is because Sony and MS are the store and do not sell keys to 3rd party retail like Steam, Origin, Uplay etc. much beyond a few code cards for some content so there is no competitive digital market for consoles so high prices stay that way.
mangochutney
Member
(11-17-2015, 02:29 PM)

Originally Posted by Diablohead

Unless europe suddenly get matched digital prices to retail store prices I can't see 40% being the norm.

ALso amazing that EA of all people say this because they charge 15 extra for their digital goods in the UK.

New digital only console in 4 years time. Believe.
Cleve
Member
(11-17-2015, 02:29 PM)
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Originally Posted by Hoho for breakfast

If you could "resell" or "trade in" digital sales would probably reach 40% next year. It's usually the only thing that really holds me back from going 100% digital.

If there was a secondary market for digital games that would impact sales to publisher, unless they were getting a cut.

-edit- What I want is a lower price or a good discount/loyalty program to bring digital console prices in line with what I would pay for a new game at Best Buy. I'm willing to give up resale for convenience at that point.
BlackBuzzard
Member
(11-17-2015, 02:30 PM)
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Originally Posted by mangochutney

New digital only console in 4 years time. Believe.

God i hope not.
notaskwid
Member
(11-17-2015, 02:30 PM)
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Where is the 'acording to inflation games should be more expensive' crowd?
Dirtyshubb
Member
(11-17-2015, 02:30 PM)
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The argument that pricing digital games at retail prices would cause the games shops to revolt against the company seems really silly these days

Unless your Nintendo, I really can't see any of the games shops reducing the already reduced sales (from digital Re pricing) by not stocking or focusing on one of the only 2 consoles you sell.

They aren't going to solve their issue or reduced profits by reducing them even more. Yeah they could focus on the other console instead but if the new digital sales are having such a huge effect that it's hurting their business surely the other console will have adapted their own prices also since they prices are set by the publisher and not console owner?

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