EA planning $70 price point for PS4 games.

[Grooveriding]

http://www.neogaf.com/forum/showpost.php?p=48364192&postcount=1
http://investors.ea.com/eventdetail.cfm?EventID=125912

• They have never been more prepaired or ready for a new console launch
• Giant leap for the industry, every step and function. "Between 8 & 10 times the power of current generation."
• Not limited to current generation "1080p, 60 fps, camera IQ"
• All of internal software will work flawlessly.
• What used to take months will now "take days" to do.
• Seeing new ways to approach current IP's and new IP's.
• The ability to have cross platform play, will open up new consumer base.
• EA has slimmed down their lineup from 85 games to 15 core titles
• Allows stream lining the backbone of game creation
• Sony and Microsoft in-line for their transition will reduce cost of production
• 5% to 10% increase in cost of production on current games.
• No pricing on retail games set, but you may see a trend of "$69.99" at start and dropping down to $59.99 similar to the beginning of the current generation.
• Saving time and money in comparison to the roadmap they set up last year.
• Data collected on gamers through created technology and algorithms allow them to engage the players.
• Gross margin as gone from 55% in 2010 to 55-65% range currently.
• Due to the transition into the digital world from boxed gaming.
• Discussed the progression and advantage of the PS4 in regards to downloading games
• Many more opportunities in "always on" connected gaming
• The focus is always focused on the "consumer experience"
• Discussion of margins in regards to digital expansion packs and the margins it drives
• Doing so builds an actual community, and overall over time, more profitability
• Building into all games micro-transaction: "Consumers are enjoying and embracing that way of the business"
• Over $25 Million revenue in micro-transactions alone last quarter. [Note: This is just The Simpsons iOS alone, not total microtransaction revenue.]
• Much has been learned on infrastructure in regards to the failed iOs launch of the Simpsons.
• Absence at PS4 reveal is not indicative to their status on the console.
• Between now and E3 you will see a lot of stuff from EA
• Thrilled with the PS4 specs - the new Battlefield is stunning

I'm sure the $70 will carry over to PC titles as well, along with what EA claims '"We are building into all of our games the ability to pay for things along the way; to get to a higher level," Jorgensen declared, "And consumers are enjoying and embracing that way of business."'


Enjoy

 

[dmoney1980]

my response to EA: http://www.youtube.com/watch?v=dv8tVxk6Nj4

 

[Cuda1447]

To high. I won't pay that much. I'll buy one or two games a year at most. Probably just look into PC gaming.

 

[SaurusX]

I've never done a micro-transaction in my life and I hope to extend that record for a long time. I simply don't need a different colored hat for my character.

 

[exdeath]

I thought the whole point of micro transactions was to reduce the up front price?

EA greedy bastards hellbent on ruining gaming, news at 11.

Good thing EA has NOTHING I care about.

 

[cmdrdredd]

It seems like EA is trying to be the worst company in the industry. While others are trying to bolster relationships with consumers and other groups, EA is looking to destroy any relationship they may have had.

I bet EA tries to sell games at $70 and their sales are poor and they go back to what everyone else is doing. I bet they think they can force this via origin but they don't understand that people can simply avoid their games altogether. I don't think there is one EA property that I could say I have to have. Its not like they are holding Zelda, or grand theft auto hostage behind this scheme.

As for their claim that dev costs went up, each system will be so close in specs, it should make things easier for them.

The new Battlefield game on ps4 will probably look the same as BF3 on a current pc except on new maps.

Imagine a game whereby our character buying an outfit or a new weapon actually deducts money out of your credit card or your character grabbing cash at an ATM in the game charged it to your credit card and without doing that you cannot continue playing because they rig the game so that you never get replenished on ammo and the new weapons don't appear for you. It may be coming. I for one will probably never buy another EA game.

 

[RedRooster]

If the current trend of new games selling for half the price within a couple months continues, I won't care what they sell games for on week 1.

 

[KaOTiK]

I haven't paid $60 for a standard game ever I don't think, so $70 will never happen (not counting collector editions). Thankfully EA doesn't have many games I care about anymore and their prices drop rather quickly in general too.

 

[Dumac]

I haven't bought an EA game in a long time.

Really, putting microtransactions into EVERY game? That is so unnecessary.

 

[blurredvision]

I haven't bought an EA game in a long time.

Really, putting microtransactions into EVERY game? That is so unnecessary.

It's extra cash flow, so from the business model standpoint, it's very necessary. I'm not going to jump on the EA hate bandwagon. If the market will support $70 games, then they're stupid not to charge for it. I personally won't pay that much, I'll wait until they come down in price if I really want a game. That's not going to make me curse the EA name, though.

 

[American Gunner]

I laugh that people think that EA is alone in putting the price point out there. They are just the ones that are vocalizing it. I don't hate EA, they have put out some really good games this generation.

 

[Olikan]

I laugh that people think that EA is alone in putting the price point out there. They are just the ones that are vocalizing it. I don't hate EA, they have put out some really good games this generation.

yeah... i think activision/blizzard are going to do the same

 

[exdeath]

Meanwhile the companies I care about (NamcoBandai, Atlus, etc) put out 100x better games for $49.

How is it a company can spend years making a lavish hand drawn symphony orchestrated RPG be profitable and manage to stay in business with 500k units sold just fine but a company who puts out cookie cutter shooter after shooter every 4 months and sells millions of units be hurting so bad for more money?

You can keep your Madden and shooter sequels.

 

[exdeath]

yeah... i think activision/blizzard are going to do the same

I'm sure Bobby Kotick and Activision are pioneering it, they started this whole "screw the customer" business model.

Also, just call it Activision. Blizzard was killed, murdered at the hands of Activision, and no longer exists.

 

[Drako]

It's extra cash flow, so from the business model standpoint, it's very necessary. I'm not going to jump on the EA hate bandwagon. If the market will support $70 games, then they're stupid not to charge for it. I personally won't pay that much, I'll wait until they come down in price if I really want a game. That's not going to make me curse the EA name, though.

Agree with this 100%.

If it costs X amount to develop a game, then you better get X plus back when you sell it. Simple fact of business.

How many game developers struggled to make money last year?

 

[exdeath]

Should be asking why it costs X to make a game only for that company.... Maybe that's the problem in the first place.

 

[Pr0d1gy]

Should be asking why it costs X to make a game only for that company.... Maybe that's the problem in the first place.

As with most companies you can be sure the problem rests with the overpaying of the do nothings that "run" the companies (i.e. CEO's, CFO's, etc).

 

[Drako]

Should be asking why it costs X to make a game only for that company.... Maybe that's the problem in the first place.

Everyone should be working for free. Am I right? :awe:

 

[RobDickinson]

Yes EA we enjoy paying $10 extra to purchase an incomplete game then having to pay more during play to get what should have been in the $60 retail game...

EA, ruin everything.

 

[mmntech]

Imagine a game whereby our character buying an outfit or a new weapon actually deducts money out of your credit card or your character grabbing cash at an ATM in the game charged it to your credit card and without doing that you cannot continue playing because they rig the game so that you never get replenished on ammo and the new weapons don't appear for you. It may be coming. I for one will probably never buy another EA game.

Two words: horse armour.

The recessions is likely still hurting the game industry as entertainment is usually the first thing cut in family budgets. The problem with the corporate model is they demand constant growth, which really isn't sustainable and doesn't really make sense. I don't doubt people will fall for it but I also don't think it will be as successful as they expect. People don't like paying more without added value.

 

[cmdrdredd]

I highly doubt everyone else is going to charge $70 just because. EA is simply arrogant. Their games get worse and worse and they think people are OK paying more for them. Activision started it though, Wasn't one CoD game, MW2 I think...the first game to be released on PC at $60 instead of the usual $50?

 

[power_hour]

They are prolly factoring in the demand for games on a new console. Should be interesting to see what they do during launch. $70 per game won't last long, no way the market will support that in this day and age. Let them try. They will lose.

 

[ShreddedWheat]

What comes to mind about EA

http://www.youtube.com/watch?v=9ReqXzcNGAw

 

[gorcorps]

They are prolly factoring in the demand for games on a new console. Should be interesting to see what they do during launch. $70 per game won't last long, no way the market will support that in this day and age. Let them try. They will lose.

You're right. Any game that would be priced that high will surely fail and definitely not be one of the top selling games for that system.

Oh wait...

Whether you want to admit it or not, games are cheaper now than they've ever been. The market can handle $70 games again, and it won't surprise me if it becomes the new AAA standard price.

 

[Aikouka]

I've seen people mention older game prices a bit, but they keep forgetting one major part of old game prices: the game medium. Cartridges were significantly more expensive to produce than optical media, and that was even more so if your game required more storage, which typically occurred with RPGs.