EA Boss Says Games Too Expensive 139
EA's John Riccitiello has been shaking things up at EA lately, with everything from layoffs to the purchase of BioWare. Now he's suggesting the company take some really drastic measures: make their games less expensive. "Riccitiello says the $31 billion gaming industry will suffer if it doesn't start to reevaluate its business model. Game executives at Sony, Microsoft and Activision must answer some tough questions in the coming years, like how long they can expect consumers to pay $59 for a video game. Riccitiello predicts the model will be obsolete in the next decade. 'In the next five years, we're all going to have to deal with this. In China, they're giving games away for free,' he says. 'People who benefit from the current model will need to embrace a new revenue model, or wait for others to disrupt.' As more publishers transition to making games for online distribution, Riccitiello says he expects EA will experiment with different pricing models."
Business model (Score:5, Funny)
1) Look at the development costs and segment by skills required.
2) Identify those skill that can be done elsewhere for less (art, coding for example)
3) Offshore those jobs
4) Pay CEO big bonus for saving money
5) Decide to ride the gravy train as long as you can with expensive games
6) Bail out of the company stock when it become obvious you are going to start losing money
7) CEO gets new job at another company for more money
8) Consultant pockets hefty fees
Games should be free ... (Score:2, Funny)
Re:Only in China... (Score:1, Funny)
Free? (Score:3, Funny)
I believe they also follow that model in Sweden [thepiratebay.org]