Yesterday's EA earnings call was packed with tidbits about upcoming games but, as reported by VG247, there was time for some minor mudslinging as well. During the call, EA CEO John Riccitiello was asked about industry health and tie ratios, and said "I think a... factor in 2009 was sort of a lack of aggressive pricing on first-party if you will, a little bit too late with their price-cuts."
He later added that console use was actually up, even in the face of social gaming platforms like Facebook. So, think what you will about Riccy's stance on price cut timing, the one thing that's certain is that we're not to blame.
Reader Comments (48)
Posted: Feb 9th 2010 9:42PM Ridgecity said
This is the first time in over 30 years of gaming that I've seen someone love so much a company's pricing strategy. Do you own SNE and MSFT stock? I'm sure many love their entertainment providers, but explaining their prices is too much. Specially when the one commenting about it is EA.
Back in my days, we loved cheap prices and better deals. Maybe this kind of love is what made Sony believe on their PSP Go strategy.
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Back in my days, we loved cheap prices and better deals. Maybe this kind of love is what made Sony believe on their PSP Go strategy.
Posted: Feb 9th 2010 4:07PM kojo87 said
i agree. i did not buy an Xbox 360 or PS3 at launch because they were too expensive for me at the time. i reconsidered after the price cuts but i still didn't get either because i felt they are too late in their life cycles. i don't want to buy one and only have it for a year before the next Xbox or PS4 is released.
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Posted: Feb 9th 2010 4:15PM ArchiGamer said
The PS3 is barely in its fifth year of release, half of Sony's ten yr life cycle plan, so I wouldn't really worry about a PS4 anytime soon.
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Posted: Feb 9th 2010 4:17PM Chris DPSN AggieCEO XBLThe Aggi said
ummmm by your logic you won't be buying the PS4 or Xbox 3 either...you REALLY think they will be any cheaper than this gens launch prices? I mean the PS4 MAYBE as $600 was high as hell due to the Blu-ray drive mostly and that cost has dropped a lot....but my guess is $400 will still be the launch price...
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Posted: Feb 9th 2010 4:21PM Mmmmz said
Yeah, only Nintendo may have plans for the next Wii in a year or two. Microsoft and Sony have made it clear they're going to milk this generation as much as they can.
That said, you're not missing much, especially if you happen to have a decent PC. Sure, plenty of good games but 90% of them are simple sequels and been there, done that game play. Not that I can fault them much. The hardware is a minor upgrade and it's hard to come up with fresh ideas.
Hopefully the next gen will focus majorly on physics hardware support. I think that's the next step in immersion, not slightly shinier graphics. Though that doesn't hurt.
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That said, you're not missing much, especially if you happen to have a decent PC. Sure, plenty of good games but 90% of them are simple sequels and been there, done that game play. Not that I can fault them much. The hardware is a minor upgrade and it's hard to come up with fresh ideas.
Hopefully the next gen will focus majorly on physics hardware support. I think that's the next step in immersion, not slightly shinier graphics. Though that doesn't hurt.
Posted: Feb 9th 2010 4:26PM Alan Smithee said
@Massmass
The PS3's GPU does have PhysX support, and the development tools are free, but it's not as good as a newer GPU would be.
That said, you're pretty safe buying a current console. If you've got a PC, a PS3 makes more sense simply because Sony's exclusives don't come to the PC, whereas Microsoft's generally do (except for Fable II, Gears 2, and Halo)
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The PS3's GPU does have PhysX support, and the development tools are free, but it's not as good as a newer GPU would be.
That said, you're pretty safe buying a current console. If you've got a PC, a PS3 makes more sense simply because Sony's exclusives don't come to the PC, whereas Microsoft's generally do (except for Fable II, Gears 2, and Halo)
Posted: Feb 9th 2010 4:31PM Mr Khan said
Sony and Microsoft will move around a similar time. For new consoles, it'll go 2011-2012, with them falling through somewhere in that range. My bet is that Microsoft or Nintendo will move first, though.
Even if Sony and Microsoft wanted to milk the generation as long as they could, they could not afford to wait around while Nintendo launches a new console, one that could potentially be rather predatory for the markets they currently occupy, and certainly one that would re-solidify Nintendo's grip on markets that Nintendo tends to dominate. They can't afford to wait, and it will be impossible for them to re-invent the consoles significantly enough to fend off a new Nintendo console, but my guess is that a 2011-2012 launch was their plan from the beginning anyway, given the interminable march of technology and all
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Even if Sony and Microsoft wanted to milk the generation as long as they could, they could not afford to wait around while Nintendo launches a new console, one that could potentially be rather predatory for the markets they currently occupy, and certainly one that would re-solidify Nintendo's grip on markets that Nintendo tends to dominate. They can't afford to wait, and it will be impossible for them to re-invent the consoles significantly enough to fend off a new Nintendo console, but my guess is that a 2011-2012 launch was their plan from the beginning anyway, given the interminable march of technology and all
Posted: Feb 9th 2010 4:31PM Mmmmz said
@Bradwart lol, perhaps that's why I said major support? :P Current physx is lame, quite frankly. A great step but if the whole world and trees could have real time physics it'd be pretty damn cool. Subtle things would go a long way.
It'd take a heck of a lot of processing but still, graphics have pretty much gotten to the point where they get the job done. Geometry-wise, textures still have a good bit to go but that goes with memory.
I just don't think another simple graphics update is going to make anyone go wow as much as hardware that can really dish out the physics.
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It'd take a heck of a lot of processing but still, graphics have pretty much gotten to the point where they get the job done. Geometry-wise, textures still have a good bit to go but that goes with memory.
I just don't think another simple graphics update is going to make anyone go wow as much as hardware that can really dish out the physics.
Posted: Feb 9th 2010 4:32PM Vcize said
@massmass
I couldn't disagree more. I have been playing videogames since the beginning and this is easily the best generation I've ever played. I've never experienced an embarrassment of riches like this where modern "average" games are as much fun as I had with the absolute triple A games of the past. And I've never experienced a situation like this generation where I have to pass up on 9.5/10 rated, triple-A games because there are just too many great games out to play them all.
Hell, it's almost like games this gen are TOO good. It feels like a job trying to keep up and make sure I don't miss out on some great experience.
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I couldn't disagree more. I have been playing videogames since the beginning and this is easily the best generation I've ever played. I've never experienced an embarrassment of riches like this where modern "average" games are as much fun as I had with the absolute triple A games of the past. And I've never experienced a situation like this generation where I have to pass up on 9.5/10 rated, triple-A games because there are just too many great games out to play them all.
Hell, it's almost like games this gen are TOO good. It feels like a job trying to keep up and make sure I don't miss out on some great experience.
Posted: Feb 9th 2010 4:35PM Alan Smithee said
It'll be interesting to see whether Nintendo even matches the power of the other two with their new console.
2012 for both the PS4 and 720, though Microsoft's plans would no doubt be dependent on Natal's success or failure.
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2012 for both the PS4 and 720, though Microsoft's plans would no doubt be dependent on Natal's success or failure.
Posted: Feb 9th 2010 4:43PM kojo87 said
@ Chris D: no i don't expect them to be cheaper. if anything i expect them to be higher. its not that i didn't want an Xbox 360 right away its that i couldn't afford one at the time. hopefully next time i will have the money to get one on the first day. 5 years ago when these consoles were launched i was 15. i had no money.
@ Massmass: that is pretty much how i felt. i couldn't afford a Xbox 360 right away because i just built myself a computer which is still pretty solid and good enough to play whatever i throw at it. there are very few console exclusive games that i am interested in. (never was into Halo or EA Sports games) everything else is just as good on PC or better.
i am still considering buying an Xbox 360. i am more interested in the 360 than a PS3 for its multimedia capabilities.
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@ Massmass: that is pretty much how i felt. i couldn't afford a Xbox 360 right away because i just built myself a computer which is still pretty solid and good enough to play whatever i throw at it. there are very few console exclusive games that i am interested in. (never was into Halo or EA Sports games) everything else is just as good on PC or better.
i am still considering buying an Xbox 360. i am more interested in the 360 than a PS3 for its multimedia capabilities.
Posted: Feb 9th 2010 8:48PM D dogg said
By Kojo87's reasoning, he'll never be buying a new console. Seriously though, your lose, not mine. Had Xbox 360 almost since day one and watching things evolve like the dash board, marketplace and games has been great.
Vcize, I agree. I can walk into a Blockbuster, see all the recently released games all rented out and still be able to rent a triple A release I haven't played yet.
Also, I don't see Microsoft replacing the 360 for another 2 years at least. Natal isn't even out yet and we all know how much R&D this device alone has sucked up.
The biggest improvements to be had for future consoles aren't in the graphics department but in storage and access.
I for one wasted too much time watching loading screens in Mass Effect 2... abolish load times in the next Xbox console with 2GB's of RAM and solid state drives and we're good.
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Vcize, I agree. I can walk into a Blockbuster, see all the recently released games all rented out and still be able to rent a triple A release I haven't played yet.
Also, I don't see Microsoft replacing the 360 for another 2 years at least. Natal isn't even out yet and we all know how much R&D this device alone has sucked up.
The biggest improvements to be had for future consoles aren't in the graphics department but in storage and access.
I for one wasted too much time watching loading screens in Mass Effect 2... abolish load times in the next Xbox console with 2GB's of RAM and solid state drives and we're good.
Posted: Feb 9th 2010 4:11PM No Kill Tayler said
This is basing of what lifespan? In Sony's Ten year plan, I believe the price cuts came on time. Microsoft as well.
Now bring in the factor for Natal and Gem or whatever it is called, and you got a relaunch basically. If supported correctly.
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Now bring in the factor for Natal and Gem or whatever it is called, and you got a relaunch basically. If supported correctly.
Posted: Feb 9th 2010 4:12PM ArchiGamer said
Is anyone in the industry -really- worried about social gaming platforms anyway?
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Posted: Feb 9th 2010 4:23PM StormEagle said
I'd wager to say that Nintendo Wii is half-way there. It's practically a hybrid of a major gaming console and a social gaming platform.
And with the obvious success of the Wii, I'd say they have every right to be worried.
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And with the obvious success of the Wii, I'd say they have every right to be worried.
Posted: Feb 9th 2010 4:15PM Chris DPSN AggieCEO XBLThe Aggi said
"He later added that console use was actually up, even in the face of social gaming platforms like Facebook. So, think what you will about Riccy's stance on price cut timing, the one thing that's certain is that we're not to blame."
uhhh right....because facebook games REALLY make me want to no longer use my PS3/360/Wii
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uhhh right....because facebook games REALLY make me want to no longer use my PS3/360/Wii
Posted: Feb 9th 2010 4:16PM (Unverified) said
Instead you can pay $10 for flash games on PSN/XBLA.
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Posted: Feb 9th 2010 4:20PM Randallmcginness said
I'm sick of game developers talking about console's being too expensive.. cut the price of your games... hypocrits
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Posted: Feb 9th 2010 4:24PM Chris DPSN AggieCEO XBLThe Aggi said
uhhh yea...cause Devs make a KILLING off of games after they pay all the fees to MS/Nintendo/Sony ¬_¬
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Posted: Feb 9th 2010 4:42PM ytilanigiroon said
@Aggie
Microsoft, Sony, and Nintendo are turning huge profits of console sales? News to me!
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Microsoft, Sony, and Nintendo are turning huge profits of console sales? News to me!
Posted: Feb 9th 2010 4:23PM Otimus said
Relatively speaking, the price cuts were late, as in, the systems cost way too much at launch.
Yes, I know, inflation and all that. But there's a certain expecation of price, and such.
I mean, think about this:
Last gen, at this SAME amount of years this gen has been out (4 years and a few months?) you could own a PS2, a GC, and a XBOX for a total of about $340? Around there.
At this same point this gen, it's going to cost you $700-850.
This is why, in comparison to last gen, adoption rates are pretty damned low.
I mean, MS has pretty much done all possible to avoid a real price drop, Sony dropped it's price quite a deal, but it was unreasonably priced to begin with, Nintendo's is priced right, but the price doesn't equal the power of the system.
It's just one big mess.
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Yes, I know, inflation and all that. But there's a certain expecation of price, and such.
I mean, think about this:
Last gen, at this SAME amount of years this gen has been out (4 years and a few months?) you could own a PS2, a GC, and a XBOX for a total of about $340? Around there.
At this same point this gen, it's going to cost you $700-850.
This is why, in comparison to last gen, adoption rates are pretty damned low.
I mean, MS has pretty much done all possible to avoid a real price drop, Sony dropped it's price quite a deal, but it was unreasonably priced to begin with, Nintendo's is priced right, but the price doesn't equal the power of the system.
It's just one big mess.
Posted: Feb 9th 2010 4:34PM StormEagle said
The only reason EA is fussin' is because they aren't making as much money on the PS3 as they did the PS2 because it got off to a much slower start (compartively).
But I would think that their obvious success on the Wii and Xbox 360 more than make up for it.
I think they, like a lot of other people, anticipated that the PS3 would rule on high just like the PS2 did and it hasn't. And that they're price cutting comments are obviously focused directly at them because they know they could be making SO MUCH more money on the "Playstation" side of the market than what they are on the "Wii" side.
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But I would think that their obvious success on the Wii and Xbox 360 more than make up for it.
I think they, like a lot of other people, anticipated that the PS3 would rule on high just like the PS2 did and it hasn't. And that they're price cutting comments are obviously focused directly at them because they know they could be making SO MUCH more money on the "Playstation" side of the market than what they are on the "Wii" side.
Posted: Feb 9th 2010 8:04PM Chopper731 said
I agree. I generally like what EA publishes but this guy needs to go... or stop talking to the press.
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Posted: Feb 9th 2010 4:34PM Zoot Suit Jedi Grammar Hammer En said
I could actually feel myself becoming stupid as I read your comment.
Idiot.
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Idiot.
Posted: Feb 9th 2010 4:34PM ytilanigiroon said
That guy kinda looks like Rick Schroeder, but with more douche bag.
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Posted: Feb 9th 2010 5:32PM Alan Smithee said
I'd agree with all the cuts except the most recent 360 price cut and SKU realignment. It felt highly reactionary, rather than well thought out, and from what the NPD has shown, had minimal effects against the Slim.
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Posted: Feb 9th 2010 4:50PM ennzo said
EA just doing all the right things!! theyve pump out soo much DLC, sometimes its even like they take things out of the game and put an extra dollar or two on them.. their servers are just garbage, i dont think i have yet to play a game of nhl 09 or 10 without lag 90% of the time..
and, now... get this, theyre gonna rag on the people who make it possible for them to make money... amazing..
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and, now... get this, theyre gonna rag on the people who make it possible for them to make money... amazing..
Posted: Feb 9th 2010 8:08PM Chopper731 said
Yep. It won't even be 4 years old until this November.
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Posted: Feb 9th 2010 5:28PM Crusty Magic said
The only way they will is if people stop buying Wii and profit margins slow down.
And that isn't happening anytime soon.
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And that isn't happening anytime soon.
Posted: Feb 9th 2010 7:44PM Marcus Carter said
Oh well don't care just give me the games I like to play and on to the next project.
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Posted: Feb 9th 2010 8:25PM (Unverified) said
Riccitiello's just being nice. Gamers should cut him some slack. EA's working their a**es off to give gamers a steady flow of games. Gamers should really step up to the plate and support EA.
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Posted: Feb 9th 2010 11:13PM UltimaChocochu said
I can't tell if this is sarcasm or not...
A "steady flow of games" regardless doesn't matter if they're unoriginal, the same thing, or just bland, but if quantity over quality is your thing then that's cool.
The only game I've enjoyed from EA in a long time was Dead Space, and the second one seems like it'll improve on the first, other than that I don't like anything else they put out at the moment.
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A "steady flow of games" regardless doesn't matter if they're unoriginal, the same thing, or just bland, but if quantity over quality is your thing then that's cool.
The only game I've enjoyed from EA in a long time was Dead Space, and the second one seems like it'll improve on the first, other than that I don't like anything else they put out at the moment.
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