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EA’s Moore: Digital’s triumph over physical retail “clearly not far away”

Monday, 13th August 2012 03:53 GMT By Brenna Hillier

COO Peter Moore has predicted EA’s digital revenue streams will be making more than traditional boxed retail sales in just a few years.

“There will come a point, whether it is two or three years from now, when we say. ‘We are doing more in digital media now than we are in physical media,’ and it’s clearly not far away,” Moore told Reuters.

“This fiscal year we have 41 social mobile and free-to-play games on the slate, and later in the year we might make announcements about more games coming.”

EA reported $1.3 billion in digital revenue in the last 12 months, and noted a 55% increase in digital revenue in the first quarter. It expects that to make $1.7 billion through digital channels in the year ending March 2013, as opposed to $2.6 billion in physical goods.

The executive said EA’s recovering stock price is proof awareness of digital strength is growing.

“Investors are starting to understand our strategy, are starting to see light at the end of tunnel, starting to see growth rates in the areas we have invested in and in the industry as a whole starting to attract attention again,” he said.

Moore also reiterated that EA will not abandon packaged games while there is a market for them.

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10 Comments

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  1. alterecho

    Well then the whole point of EA’s reason in the market is pointless. If people can get things off digitally, developers don’t need EA to publish their games. They can offer it themselves. Or have i misunderstood how the system works?

    #1 2 years ago
  2. Strawb

    @1

    If that were the case, Steam would have no use, either. While it’s a positive thing for a developer to offer up games themselves, in many cases, it’s a lot easier to use an established platform.

    #2 2 years ago
  3. GrimRita

    Digital and even purchasing online has taken huge chunks from the traditional bricks N mortar retailer and yet most still dont see this online steam train come crashing toward them.

    @1 It takes a lot of kit to deliver a good online service – Steam have that nailed after a shakey start so unless you have lots of money(like EA) it doesnt make sense to build your own.

    Steam/value have come a long way and are probably the biggest for PC gaming – after all the publishers tried to move away from the platform, Valve/Steam kept the faith and now its paying off.

    #3 2 years ago
  4. alterecho

    I will choose a physical copy over digital anytime from now.

    #4 2 years ago
  5. Sadismek

    I usually like to have physical copies of my games. I don’t know, there is a certain degree of satisfaction to look at the shelves from time to time and see all the goodies in there :P. Probably because I like to collect things, too.

    #5 2 years ago
  6. xxJPRACERxx

    I like to have a physical object too, but when I look at the number of games I have on Steam, I’m glad they’re not physical cause I would have no place to store them all.

    #6 2 years ago
  7. DrDamn

    I will go digital for the vast majority next generation. Love the convenience. If I have to pay a premium I’ll just buy less. Haven’t got the time to play half the stuff I buy anyway :D

    I’d like it to be much easier to take your digital game collection round a friends place though. Like the 360 HDD is removable and portable, but a bit more designed with this in mind.

    #7 2 years ago
  8. Dragon246

    Digital is cheaper than retail in many cases too like vita games. And your games are safe and free from problems like disc errors. Plus it destroys the used games market. A win for honest customers, devs and pubs.
    DIGITAL is definitely the future.

    #8 2 years ago
  9. alterecho

    @8 Not till internet is as common as electricity.

    #9 2 years ago
  10. GrimRita

    @9 Yeah thats true. The UK has such crap broadband. Lots of bandwith and capacity restrictions. If you purchase a game, download some DLC and then some patches in a month, you could easily go over 20GB of data – the limit for many ISPs here.

    Of course, if you pay a lot more, you can get that lifted. We just need more fibre optics around the country and I will be happy. Oh how I miss my Virgin broadband :(

    #10 2 years ago