Analysts and executives have been constantly talking about price cuts, especially since E3 came and went with no indication of any price reductions on the PS3. Now, most in the industry would seem to be expecting price cuts on at least two of the three platforms, if not all three.
Today, on the EA conference call following the company's Q1 results, EA CEO John Riccitiello commented, "We try not to comment too much on plans that others get to decide and implement, but it's our view that we're at a particularly interesting point in the [console] cycle. We've got approximately 75 million consolidated installed base against the major platforms in Western markets, where the total installed base on last gen was about 125 [million]. So we've sold a lot more at high prices than we did in the last cycle, and we think pricing will move hardware. We anticipate price cuts at some point and we'd like to see them later in the year. We can't really speculate except to say it would be welcomed in the marketplace. In terms of our own guidance, we take knowledge that we glean under NDA but we can't disclose that in our call."
So essentially what Riccitiello is saying without coming out directly and stating it is that EA is already factoring in some console price cuts to its own guidance, based on knowledge of said cuts revealed to them under NDA. THQ's chief executive Brian Farrell already said that his company had factored price cuts into guidance, so it would make sense that EA has as well.
6 Comments
August 5, 2009
Why doesn't EA just shut the fuck up? They are about the only devs/pubs complaining about this and they are probably on the list of doing OK compared to other companies. Everyone is losing money! I don't think anyone needs a price cut as of now. It is getting cheaper to manufacture ps3's, but Sony needs to wait until sales start to somewhat catch up. The Wii is already cheap enough, unless they don't appreciate the console, but that's a different story. I'm not exactly sure what to say about MS, but it seems like most people who want a 360 own one. EA is just being a cheap ass company dont buy in to any of their tricks.
August 5, 2009
BLaZERaMPaGE, I understand your frustrations, but I don't think your statement about EA is correct. Just about every big software development company have commented on the high price of PS3 during the last 3-4 months (Activision, Tecmo Koei, EA, etc.). Activision's boss even threatened to stop supporting Playstation products if Sony will continue its pricing policy! In my opinion, EA is not being cheap, they just want to make more money. Software development companies, of course, will say nothing about the high price of their products, but they are the first to comment on consoles' high prices. Which brings me to what gamers SHOULD be talking about, which is "lower prices for EVERYTHING!" It is incomprehensible that we are expected to pay $300 and $400 for a console, and even more insane that we are expected to pay $60 for one game, have you ever thought about that? Hardware and software companies will not say anything about that because they love our money, but I think it is time for us gamers to stand up and demand that they bring the video game prices to more realistic levels. I would LOVE to hear people's opinions on that issue!
August 5, 2009
This is exactly what I thought. These publishers know a ps3 cut is coming and that's why potential hit titles were moved to 2010. Not because they were afraid of MW2 or it'll be over crowded. It was in hopes of increased sales.
I think EA and everyone else should lower the prices of it's games. Publishers keep looking for the consoles to get cheaper but I don't see any aggressive pricing strategies on anything but below average software. Sell me 3 games for 120 vs 2. I'm not going to take a lot of chances with titles at $60 but 40 would increase at least impulse buys.
August 5, 2009
Nikos and Blaiyan - you bring a good argument for publisher to sell their games for 60 bucks, but don't forget that publishers do lower their prices after sales slow down. You don't have to wait for Madden 10 to sell at $60 when you can get Madden 09 now for $30. This is all about one's threshold to buy hardware or games. No one "has to" buy anything when it just came out at it highest price. Just wait and you'll get whatever game you want when you can afford it.
August 5, 2009
d3edo, I see your point in waiting for prices to go down for games but this strategy only works with games like Madden 10, Soccer Evolution Pro, or NFL, in other words, sports games that are being re-released on a yearly basis. For example, Try buying Resident Evil 5 (March 2009 release), Killzone 2 (February 2009 release), Call of Duty: World at War (November 2008 release), Resistance 2 (November 2008 release), or even Uncharted (November 2007 release). These games cost $60 today and some of them are 2 years old or close to it. Blaiyan is right, $40 per game is a fair deal. That price point will allow publishers to make a decent profit, and the gamers to be able to afford buying games from retailers and supporting the publisher.
August 6, 2009
Nikos - like i said, if your threshold for games is $40, buy $40 games. This is all wants and needs.
Post a Comment
Login With IndustryGamers
Create an account, it literally takes like 5 seconds and you'll never have to do it again.
Login / Register
Login With Facebook
Have a Facebook account? Just hit the button and you can comment on our site!