EA Defies Trend: No Plans to Raise Video Game Prices
Electronic Arts (EA), a prominent publisher and developer in the gaming industry, has firmly stated that it will not be increasing the prices of its games. This announcement comes at a time when competitors such as Microsoft and Nintendo are moving towards higher price points, with Microsoft raising Xbox game prices to $80 and Nintendo setting a similar price for upcoming Switch 2 exclusives like Mario Kart World.
During EA's latest financial call, CEO Andrew Wilson emphasized the company's commitment to delivering "incredible quality and exponential value" to its playerbase. This focus was highlighted with the success of their co-op adventure game Split Fiction, which has sold an impressive 4 million copies. Wilson pointed out the evolution of the gaming industry over the last decade, noting that while physical sales still play a role, the business model has expanded significantly to include everything from free-to-play games to deluxe editions.
Wilson further elaborated on EA's pricing strategy, stating, "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." He stressed that combining quality and value has proven to be a successful strategy for EA, leading to a strong, resilient, and growing business.
CFO Stuart Canfield reinforced this stance by mentioning that there are no changes planned in EA's current pricing strategy. This decision will likely be welcomed by gamers, especially in light of recent moves by other companies to increase prices. Microsoft, for instance, has already raised the prices of Xbox consoles and accessories, with game prices expected to follow suit by the holiday season.
The trend of increasing game prices from $60 to $70 over the past five years has been observed across the AAA gaming sector. Nintendo's decision to price the upcoming Switch 2 at $450, alongside higher game prices, has been met with criticism from fans, though analysts have noted that such price increases are almost inevitable amid current economic conditions.
Given EA's position, fans can expect the next releases in popular franchises like EA Sports FC, Madden, and Battlefield to maintain the $70 standard edition pricing. This news comes amidst reports of EA making significant layoffs, including around 100 jobs at Apex Legends developer Respawn Entertainment and an additional 300 positions across the organization, as reported by IGN last week.
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