EA Defies Trend: No Plans to Raise Video Game Prices
In a recent financial call with investors, EA CEO Andrew Wilson has firmly stated that the company has no plans to increase the prices of its games, setting itself apart from competitors like Microsoft and Nintendo, who are moving towards $80 price tags. Wilson emphasized EA's commitment to providing "incredible quality and exponential value" for their player base, citing the success of their co-op adventure game Split Fiction, which has sold an impressive 4 million copies.
Wilson elaborated on the evolution of EA's business model over the past decade, highlighting the shift from traditional retail sales to a broader spectrum of pricing strategies that range from free-to-play to deluxe editions. "In a world where everything we did 10 years ago was about selling shiny discs in plastic boxes on retail shelves — well, that’s still a *part* of our business, but it’s a significantly smaller part of our business," he explained. He underscored the company's objective to deliver value across various price points, from $1 to $100, stating, "And what we've discovered over the course of time is [when] we can marry quality and value together, our business is strong, resilient, and continues to grow."
EA's CFO, Stuart Canfield, reinforced this stance, noting that the company's current pricing strategy remains unchanged, reflecting no adjustments in their financial guidance.
This news comes as a relief to gamers, especially following Microsoft's recent announcement of increased prices for Xbox consoles, accessories, and plans to raise game prices to $79.99 around the holiday season. The trend of escalating game prices is evident across the industry, with AAA gaming prices jumping from $60 to $70 in the last five years, and Nintendo setting $80 price points for upcoming Switch 2 exclusives like Mario Kart World. The Switch 2's launch price of $450 has also been met with criticism, though analysts suggest such pricing is inevitable given current economic conditions.
Given EA's current position, fans can anticipate that upcoming titles such as EA Sports FC, Madden, and Battlefield will maintain the $70 standard edition pricing.
In other news, EA recently cut around 100 jobs at Apex Legends developer Respawn Entertainment and made broader cuts affecting approximately 300 employees across the organization.
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