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Nirolak · Nov 2, 2016

EA itself is at 29% due to FIFA selling well in a lot of countries with lower download rates.

EA said:
Benjamin Schachter - Macquarie Capital (USA), Inc.

And finally, just a quick clarity point, did I hear you correctly say that digital downloads are growing about five points a year, perhaps more in North America and the UK? If yes, what was the base we're growing off of last year? Thanks.

Blake J. Jorgensen - Electronic Arts, Inc.

And Ben, on your other two questions, on full-game downloads, we finished our fiscal 2016 around 24% of all of our games. And as we've talked about publicly, we lag the industry by one or two points primarily because FIFA is such a large global product. It has huge share in some marketplaces where full-game downloads, due to bandwidth or credit card capabilities, are not it impacts that business there.

Benjamin Schachter - Macquarie Capital (USA), Inc.

Blake, are those console games, or PC also?

Blake J. Jorgensen - Electronic Arts, Inc.

Excuse me. This is Gen 4-only consoles, sorry. Obviously, PC skews it. 75% to 80% of all PC games are full-game downloads. That pulls the numbers up. We think the industry is going be probably by calendar year end around 30%. And our internal estimates are around 29% for ourselves, once again, slight lag with the industry. But as I said, I think we're seeing positive trends on all of that, so that's good.

Source: http://seekingalpha.com/article/401...-results-earnings-call-transcript?part=single

Obliterator · Nov 2, 2016

Not surprised at all and its going to keep going. I fully expect the end of this generation / early next generation to hit 50 / 50 split. Digital really started sky rocketing right before last holiday season and seems to be steadily going up

Kyoufu · Nov 2, 2016

It'd be even higher if prices weren't so high in UK/Europe.

Cartho · Nov 2, 2016

They still need to sort pricing. BF1 digital download card in GAME is £54.99, BF1 boxed copy in the same store is £49.99.

GTA V is STILL £54.99 on the Xbox UK store. Utterly ridiculous prices mean it's never going to really take off.

sense · Nov 2, 2016

Slowly moving towards that magical 90% ratio

mrklaw · Nov 2, 2016

So PC only Bumps the percentage up by 5%?

Nirolak · Nov 2, 2016

mrklaw said:
So PC only Bumps the percentage up by 5%?

No, the release of Battlefield 1 and Titanfall 2 are going to drive up their console percentage by 5% versus pretty much only having released FIFA and Madden in terms of major sellers this year.

The confusion from the analyst was that he didn't know if EA's current 24% digital sales result was based on console or console + PC, and it's only based on console sales.

LuvOfThaGame · Nov 2, 2016

So, those of us thats supported the idea that digital has increased to 30% and possibly higher were not that bat shit crazy? Cool beans.

RowdyReverb · Nov 2, 2016

I like to buy games digitally for the convenience factor, but you definitely pay a premium, both in lack of discounts seen in B&M stores and the loss of resale potential.
If I was rolling in money, I wouldn't hesitate to go fully digital.

acm2000 · Nov 2, 2016

30% of gamers are paying too much for their games

brandonh83 · Nov 2, 2016

I'll buy digital if it's gonna be something I just want to have on the console at all times like an online multiplayer or something. Otherwise, disc.

c0de · Nov 2, 2016

The real question is what we can expect from other companies. I mean there is nothing special to ea games to think others are way lower than that. Right? Or am I missing something?

FarFromAnyGame · Nov 2, 2016

I'm trying to have a physical collection but Digital much more convenient!

hodayathink · Nov 2, 2016

acm2000 said:
30% of gamers are paying too much for their games

30% of console owners don't live in the UK/Europe. Also, EA Access discount.

c0de said:
The real question is what we can expect from other companies. I mean there is nothing special to ea games to think others are way lower than that. Right? Or am I missing something?

He also says that FIFA being popular worldwide means that EA lags behind the rest of the industry in the first place, which is why he sees them at 29% and the rest of the industry around 30%.

jrcbandit · Nov 2, 2016

Never going digital for console $60 releases. Can get it at least 20% off or more if a $10 Best Buy rewards zone coupon is offered, ie, $38 for a brand new physical release and I can sell it on Ebay when I am done with the game. I also rarely buy a game directly from Steam outside of a sale since GMG offers 20% off for most new releases.

Aizen.S.Kennedy · Nov 2, 2016

acm2000 said:
30% of gamers are paying too much for their games

Nahh

Aztechnology · Nov 2, 2016

The best remaining vestige of console gaming is that they have physical games.

travisbickle · Nov 2, 2016

XB1 exclusives are higher than that because they're not performing as well at retail.

harz-marz · Nov 2, 2016

Going all digital is not feasible when Sony, Microsoft and Nintendo ship their consoles with low capacity HDDs. In addition, the download speeds (especially Xbox One) are a total pain in the ass.

Pricing is the main barrier, if they priced the games in line with Steam it would take off in a huge way.

mrklaw · Nov 2, 2016

Nirolak said:
No, the release of Battlefield 1 and Titanfall 2 are going to drive up their console percentage by 5% versus pretty much only having released FIFA and Madden in terms of major sellers this year.

The confusion from the analyst was that he didn't know if EA's current 24% digital sales result was based on console or console + PC, and it's only based on console sales.

It was worded a bit strangely - the way he talks about console only for the 24%, then about PC, then about 'industry' percentages made me think that last number *did* include PC

Hamster Plugin · Nov 2, 2016

Kyoufu said:
It'd be even higher if prices weren't so high in UK/Europe.

It seems people don't really care about that. The same issue exists on PC and digital took over anyway.

Nirolak · Nov 2, 2016

mrklaw said:
It was worded a bit strangely - the way he talks about console only for the 24%, then about PC, then about 'industry' percentages made me think that last number *did* include PC

I cut out a bit in the middle which might not have helped. There were a few people talking over each other.

StrongBlackVine · Nov 2, 2016

travisbickle said:
XB1 exclusives are higher than that because they're not performing as well at retail.

Nah

KJRS_1993 · Nov 2, 2016

I absolutely can't imagine that being reflected in the UK with those prices being as frustratingly high as they are. You're paying a 50% markup in some instances for a copy you can't trade back.

IgotElbows · Nov 2, 2016

My question is why are digital games the same price as retail games?

I know in the past retail games went from 50 to 60 so publishers/retailers could make more money. Obviously retailers have to get some of the profit from the games.

Buy why are digital games the same price?
There is no retailer getting a piece of the pie.
AND there isn't any more cost being put in for the disc and case.

I remember PC/STEAM used to only be 50$ since they were digital but ever since Skyrim (Or maybe COD?) new releases have been 60$ digital ever since. :/

RibMan · Nov 2, 2016

It's only going to go up. By 2020, we're absolutely going to be above 50% in NA and EU.

The real question is what we can expect from other companies. I mean there is nothing special to ea games to think others are way lower than that. Right? Or am I missing something?

It primarily depends on what region the company generates most of their sales, right? For example, a company that generates most of their sales in areas other than NA and UK are most likely going to have lower digital numbers ergo a lower digital percentage. There are other factors (aside from slow internet, bandwidth caps, digital distrust etc.) that could prevent digital numbers from being high, e.g. Selling a product that requires a physical component like a guitar or a toy.

Nirolak · Nov 2, 2016

c0de said:
The real question is what we can expect from other companies. I mean there is nothing special to ea games to think others are way lower than that. Right? Or am I missing something?

His statement is actually that the market is at 30%, and EA is at 29%, so you would expect other companies to be the same or higher.

Matt · Nov 2, 2016

IgotElbows said:
My question is why are digital games the same price as retail games?

I know in the past retail games went from 50 to 60 so publishers/retailers could make more money. Obviously retailers have to get some of the profit from the games.

Buy why are digital games the same price?
There is no retailer getting a piece of the pie.
AND there isn't any more cost being put in for the disc and case.

I remember PC/STEAM used to only be 50$ since they were digital but ever since Skyrim (Or maybe COD?) new releases have been 60$ digital ever since. :/

There is absolutely a retailer involved (PSN, XBL, and Steam).

Diancecht · Nov 2, 2016

Good. I don't even remember the last time I bought a retail copy of a game. I think it was Most Wanted 2005? I don't even have a cd-rom in my PC.

StrongBlackVine · Nov 2, 2016

Paying $60 for a game I might not like amd up stuck with just isn't very appealing. So far this generation I have only bought 2 new releases digitally(Destiny, Bloodborne) because I pretty damn confident that I would put a lot of time into them. I don't see that changing any time soon now that physical games even cheaper thanks to Amazon.

Rolf NB · Nov 2, 2016

I for one am glad that the majority of downloads are digital, finally.

Kuosi · Nov 2, 2016

If Amazon prime worked in Finland I could still consider getting physical, but as it stands I buy all digital, just much more convenient and I don't sell my old games anyway

El-Suave · Nov 2, 2016

On the one hand you might want to sell their sports games while they still have value before the next entry comes out, but on the other hand EA's games are designed to be played throughout the year(s) so not having to change the disc all the time is a great convenience.

mrklaw · Nov 2, 2016

El-Suave said:
On the one hand you might want to sell their sports games while they still have value before the next entry comes out, but on the other hand EA's games are designed to be played throughout the year(s) so not having to change the disc all the time is a great convenience.

I have gone heavily digital but I also use the disc drive as an extra 'instant' game. E.g. On Xbox it has FIFA 17 in there pretty much permanently because it was cheaper to buy physically. If you rarely swap discs it functions equivalently to a digital game.

I do the same with vita but more based on size. If a game is really large I'll often buy physically to avoid using up space on the memory card, while still being immediately available

Hasney · Nov 2, 2016

Obliterator said:
Not surprised at all and its going to keep going. I fully expect the end of this generation / early next generation to hit 50 / 50 split. Digital really started sky rocketing right before last holiday season and seems to be steadily going up

It won't unless pricing changes. I used to be almost all digital buying from the US store when it cost about £38 for a new release game. But now the £'s dropped, why would I pay £50 for Final Fantasy XV on PSN when I have a physical copy on order for £32?

Due to the size of the US market, maybe they can creep it up a few more percentage points. But unless something changes in Europe, it's not going 50/50

freefornow · Nov 2, 2016

Kyoufu said:
It'd be even higher if prices weren't so high in UK/Europe.

Amen!

krang · Nov 2, 2016

Rolf NB said:
I for one am glad that the majority of downloads are digital, finally.

I know, right. Those analogue downloads were so wavey.

Side note of irritation: DVDs and Blu Rays are also digital.

sja_626 · Nov 2, 2016

This will continue to increase. Pricing is bad in many cases but OK in others. e.g. digital first party PS4 games where I live are now often on par with or cheaper than retail at launch. This certainly isn't the console industry norm though. Hopefully things continue to improve. But I think the truth of the matter is that the price premium doesn't matter so much to a lot of people, there are a lot of adult gamers who have more money than they do time. They value convenience over saving a few bucks, and were never likely to bother with trading stuff in. I place myself in this category.

chadskin · Nov 2, 2016

RowdyReverb said:
I like to buy games digitally for the convenience factor, but you definitely pay a premium, both in lack of discounts seen in B&M stores and the loss of resale potential.
If I was rolling in money, I wouldn't hesitate to go fully digital.

Indeed.

I picked up Sunset Overdrive recently for £6 from TGC while it's still £39.99 on the store ... no convenience in the world would get me to spend >600% more for a digital version.

ScherzoPrime · Nov 2, 2016

A bit off topic, but I still think their whole 'Gen 4' nomenclature they like to use is weird. Like EA was making games for the SNES and Genesis, they know video games didn't magically start with the PS1. Why is saying 8th gen hard for them to do? (though I guess in a way that's also a bit arbitrary, as the concept of console 'generations' kinda is a bit fuzzy before SNES and Genesis).

EGM1966 · Nov 2, 2016

And yet people will still argue for higher percentages (all the way up to 90) when it suits them for console games.

Hopefully some actual stats will minimise this and allow focus on more sensible and likely sales estimates based on retail sales vs the usual flights of fancy whenever a favourite game underperforms.

c0de · Nov 2, 2016

EGM1966 said:
And yet people will still argue for higher percentages (all the way up to 90) when it suits them for console games.

And there will also be people who want to downplay digital sales fitting their agenda. It's of no use to concentrate only on one side.

Hasney · Nov 2, 2016

EGM1966 said:
And yet people will still argue for higher percentages (all the way up to 90) when it suits them for console games.

Hopefully some actual stats will minimise this and allow focus on more sensible and likely sales estimates based on retail sales vs the usual flights of fancy whenever a favourite game underperforms.

It won't. We've known percentages like this previously where 30% was the top end and now seems to be the industry average. It won't stop people.

Staf · Nov 2, 2016

Have yet to buy a non-digital game for my PS4. I'm too lazy and rich to buy non-digital.

In Service · Nov 2, 2016

The suggestion that it was "good" to increase digital sales suggests that they are more profitable for all of the obvious reasons.

Occam · Nov 2, 2016

Now give buyers of digital games proper ownership rights.

Conduit · Nov 2, 2016

travisbickle said:
XB1 exclusives are higher than that because they're not performing as well at retail.

That's why PSN cards on Amazon are at the top for years.

Vaga · Nov 2, 2016

30% of console owners don't own games.

NinjaBoiX · Nov 2, 2016

Nearly bought TF2 from PSN the other day, then I saw it a tenner cheaper in ASDA.

Plus, digital on PS4 is a pain because you need twice the amount of space that's required.

I buy a lot more digitally these days because of sales and digital only games but it's not my first choice

EGM1966 · Nov 2, 2016

Hasney said:
It won't. We've known percentages like this previously where 30% was the top end and now seems to be the industry average. It won't stop people.

I know.

But I'm feeling optimistic today.

I get it when people have actually valid arguments (say the title is MP only and has great reviews and word of mouth and a lot of media coverage - I could figure such a title might have a higher than usual split on digital) but mostly it's a clearly desperate clutching at straws because a title has sold less than they'd hoped.

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EA: PS4/XB1 digital download rate of retail games now at 30% for the industry

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