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Riccitiello: Retail revenues will feel the squeeze

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Riccitiello: Retail revenues will feel the squeeze

EA boss predicts that High Street software sales will rapidly decline in next two years

Software sales currently account for around 80 per cent of the games market – that could decline to 50 per cent in the next two years, according to EA boss John Riccitiello.

“Presently, we are packaged goods with strong service components,” the exec told Gamasutra. “Within a year or so, we're going to feel more like services enabled by packaged goods.

“Services are the nirvana that I'm trying to get to, because I think it's better for the consumer. There's more value in the dynamism of a service.”

The rise of both downloadable content, microtransactions and gaming subscriptions will logically take up larger and larger slices of the revenue pie.

Plus, with Microsoft soon introducing full game downloads (a move already cautiously trialled by Sony on both PS3 and PSP) it’s hard to fault Riccitiello’s logic.

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You are wrong

posted by xyz Jun 11, 2009 at 8:27 am
1
xyz

I suggest you go back and read the Gamasutra article properly. You have totally misreported it.

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is it tactics

posted by Dimplus Jun 11, 2009 at 1:53 pm
2
Dimplus

Why is it that Sony and EA at one time try to scare the hack out of retailers and tell them they will be screwed by them in a while...

While the other moment they embrase the same people for doing a good job in creating momentum, marketing, etc for them and so form a huge sales-base (which enthusiasm surely won't be created by the forthcoming online strategies).

Especially nice moment to pinch at retailers when your own title Sims 3 is being so well sold by the retailers.. while online it's mostly illegal downloads that forms the "digital" part of consumers who are making sure the "get the game".

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