Electronic Arts to try new pricing models, says CEO Riccitiello

Electronic Arts to try new pricing models, says CEO Riccitiello - Image 1Electronic Arts‘ CEO, John Riccitiello, has given a hint that the superstar publisher may soon experiment with new pricing models in the near future. Riccitiello has predicted that the usual pricing and revenue models will soon need to change, after emerging markets have defeated the US$ 59.99 premium price point for video games.

“In the next five years, we’re all going to have to deal with this. In China, they’re giving games away for free,” said Riccitiello. He believes that soon the rest of the world will reach the forked road and accept change. “People who benefit from the current model will need to embrace a new revenue model.”

At the start of 2007, Electronic Arts became one of the major worldwide publishers to have given away a current game for free. EA SportsFIFA 07, Electronic Arts’ previous bid in the virtual soccer market, was practically given away to gamers and fans in South Korea.

It must be noted that the game was at first downloaded for free within piracy rings, but soon EA accepted that there was a growing trend in a much larger gaming market (in population) that Western companies would soon have to face. Gamers now want something for nothing, and EA was generous enough to oblige.

FIFA 07 no longer appeared for retail on shelves, and the game was offered free for download over the Internet. In order for EA to gain something out of the gesture, the publisher marketed game “enhancements” for a minute microtransaction fees. Unsurprisingly, it was widely accepted. Korea’s gaming economy flourished with microtransaction business models.

Riccitiello notes that as more publishers accept the online distribution model, Electronic Arts may begin testing out different pricing models for its wide lineup of games.

Electronic Arts to try new pricing models, says CEO Riccitiello - Image 1Electronic Arts‘ CEO, John Riccitiello, has given a hint that the superstar publisher may soon experiment with new pricing models in the near future. Riccitiello has predicted that the usual pricing and revenue models will soon need to change, after emerging markets have defeated the US$ 59.99 premium price point for video games.

“In the next five years, we’re all going to have to deal with this. In China, they’re giving games away for free,” said Riccitiello. He believes that soon the rest of the world will reach the forked road and accept change. “People who benefit from the current model will need to embrace a new revenue model.”

At the start of 2007, Electronic Arts became one of the major worldwide publishers to have given away a current game for free. EA SportsFIFA 07, Electronic Arts’ previous bid in the virtual soccer market, was practically given away to gamers and fans in South Korea.

It must be noted that the game was at first downloaded for free within piracy rings, but soon EA accepted that there was a growing trend in a much larger gaming market (in population) that Western companies would soon have to face. Gamers now want something for nothing, and EA was generous enough to oblige.

FIFA 07 no longer appeared for retail on shelves, and the game was offered free for download over the Internet. In order for EA to gain something out of the gesture, the publisher marketed game “enhancements” for a minute microtransaction fees. Unsurprisingly, it was widely accepted. Korea’s gaming economy flourished with microtransaction business models.

Riccitiello notes that as more publishers accept the online distribution model, Electronic Arts may begin testing out different pricing models for its wide lineup of games.

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