News
Riccitiello: Consolidation is not the future
Ben Parfitt Nov 30 2007, 11:56am
Comments (3)
EA CEO says emerging business models such as microtransactions will shape industry’s future growth
John Riccitiello, the CEO of leading global games publisher Electronic Arts, has stated that he believes there will be less consolidation in the games industry in the future, and that new business models such as microtransactions and in-game advertising will be the driving factors in the years to come.
"Is the industry ripe for mergers, or has it already been picked? I would argue that it's been largely picked," he told Reuters. "That doesn't mean it's done. I think there will be more consolidation to come. But let's just say a lot has already happened.
"There's a lot of growth in what is the non-traditional arena, so that would be microtransactions, subscriptions revenue, ad revenue, new types of models, casual games.”
It’s not the first time Riccitiello has predicted change in the games industry. In July he claimed that publishers risked boring their audience with endless sequels, and then in November he attacked the current software pricing structure.
Comments
“Uh...”
Posted by: Tom Cressey - Nov 30, 4:47pm
It's an interesting proposition, the growth of one of the worlds largest industries though little 90p transactions. Worked for Itunes I guess, but I'm not a firm believer in EA's strictly business take on an industry based on fun and originality. I don't buy games because they're sponsored by Nokia, I buy them because they look like something new and enjoyable, or a tried and tested formula that I've always enjoyed.
“Activision Blizzard would beg to differ”
Posted by: Mmm...crow...tasty - Dec 2, 6:20pm
Ahem...and a couple days after Riccitiello's prediction...EA is dethroned as the largest game company by the merger of Activision and Vivendi. Guess that consolidation thing isn't over after all, eh John?
“Consolidation has only just begun...”
Posted by: DJWD - Dec 2, 7:45pm
And then WB will buy SCI and then EA will swallow Ubi and then... (etc.) ... and then the landscape has changed quite a bit again and John is right again after all. ;-)