In a recent financial call with investors, EA (Electronic Arts) has firmly stated that it will not be following the footsteps of competitors like Microsoft and Nintendo by increasing the price of its games to $80. CEO Andrew Wilson emphasized the company's commitment to delivering "incredible quality and exponential value" for its player base. This approach is highlighted by the success of their co-op adventure game, Split Fiction, which has impressively sold 4 million copies.
Wilson elaborated on how the gaming industry has evolved over the last decade. He noted that while physical sales of games in retail stores still contribute to their business, they now represent a much smaller fraction compared to digital sales. EA's current strategy encompasses a wide range of pricing models, from free-to-play games to deluxe editions, showcasing their adaptability to different market segments.
"At the end of the day, whether we're doing something that costs a dollar, or we're doing something that costs $10, or we're doing something that costs $100, our objective is always to deliver incredible quality and exponential value for our playerbase," Wilson stated. He emphasized that by consistently providing high-quality products at various price points, EA ensures a robust, resilient, and growing business model.
CFO Stuart Canfield reinforced this stance by confirming that there are no plans to alter the current pricing strategy. This decision comes at a time when other major players in the industry, such as Microsoft, have announced price increases. Microsoft recently confirmed hikes in Xbox prices, including controllers, headsets, and certain games. While the price of Xbox games remains unchanged for now, a rise to $79.99 for new, first-party titles is expected around the holiday season.
The gaming industry has seen a general trend of increasing prices, with AAA gaming titles jumping from $60 to $70 over the past five years. Nintendo has also joined this trend, setting prices at $80 for upcoming Switch 2 exclusives like Mario Kart World and other Switch 2 Edition games. The Switch 2 itself is set to launch at $450, a price point that has drawn mixed reactions from fans, though analysts suggest it's a necessary adjustment given current economic conditions.
Given EA's clear position, fans can anticipate that the next EA Sports FC, Madden, and Battlefield games will adhere to the $70 standard edition pricing. This news arrives amidst reports that EA cut around 100 jobs at Apex Legend developer Respawn Entertainment, along with broader cuts affecting approximately 300 individuals across the organization.
