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  1. #1
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    EA is "going to be a 100% digital company, period" says Gibeau

    I don't see them becoming 100%, unless they want to lose some of their market. Then again the people without a high speed connection probably don't play a lot of games

    EA is "going to be a 100% digital company, period" says Gibeau

    By James Brightman





    Mon 02 Jul 2012 2:59pm GMT
    / 10:59am EDT / 7:59am PDT
    OnlinePublishing
    EA's Labels president also tells us that NPD's monthly reports are "totally irrelevant"
    Electronic Arts

    www.ea.com


    Electronic Arts is one of the publishers in this industry that is at the forefront of the digital transition. The company recently had its first year of digital revenues over one billion dollars, and now EA is expecting that number to jump closer to $2 billion (guidance of $1.7 billion in digital revenues this year). For EA Labels boss Frank Gibeau, the business is clearly at a tipping point. He told GamesIndustry International recently that EA clearly will be 100 percent digital in the near future.


    We asked Gibeau point blank when the company will have most, if not all, revenues coming from digital products. It's not as far off as one might think.

    "It's in the near future. It's coming. We have a clear line of sight on it and we're excited about it. Retail is a great channel for us. We have great relationships with our partners there. At the same time, the ultimate relationship is the connection that we have with the gamer. If the gamer wants to get the game through a digital download and that's the best way for them to get it, that's what we're going to do. It has a lot of enhancements for our business. It allows us to keep more that we make. It allows us to do some really interesting things from a service level standpoint; we can be a lot more personalized with what we're doing," Gibeau enthused.
    "We're going to be a 100% digital company, period. It's going to be there some day. It's inevitable"
    Frank Gibeau

    EA isn't about to abandon retail and its valuable retail partners tomorrow, though.
    "But if customers want to buy a game at retail, they can do that too. We'll continue to deliver games in whatever media formats make sense and as one ebbs and one starts to flow, we'll go in that direction," Gibeau continued. "For us, the fastest growing segment of our business is clearly digital and clearly digital services and ultimately Electronic Arts, at some point in the future - much like your question about streaming and cloud - we're going to be a 100% digital company, period. It's going to be there some day. It's inevitable."
    The fact that more and more of the industry is going digital opens up new avenues for EA and other gaming companies.

    "For us, we're focused in on the fact that the gaming market overall is broad. You have more people playing games now than ever before in the history of the industry. There are more markets available to us - Asia, Brazil, Russia - a bunch of emerging markets that are legitimate and growing fast. We have more devices that we can publish across now. We used to publish across three platforms; now we're publishing across 14 or 15," Gibeau said.
    "[NPD] an irrelevant measure on the industry. It's totally irrelevant. We don't even really look at it internally anymore"
    Frank Gibeau

    "The advent of IP televisions and streaming - we'll be prepared for it. That'll be a way that we'll generate content and deliver it to customers in a high quality way. The next generation of hardware is going to come out. It's difficult to speculate what generation next would be after that, but there are opportunities in cloud and streaming that are very interesting to us and we have relationships with Gaikai and other companies where we've investigated a lot of that stuff and we clearly see our IP and our capabilities on the digital services front translating over very easily there."

    Gibeau believes that some industry observers and investors are not grasping the complete picture. And part of the reason for that is the constant decline we've seen through NPD's monthly retail reports. Gibeau went so far as to say that EA all but ignores NPD's data now.

    "I think one of the problems with this industry right now is that people tend to look at it like they're looking at an elephant through a straw. They only see a little parts of it and they're not looking at the total picture, right? Between Facebook, social, mobile, free to play on PC, Asia, consoles... it's a vibrant, growing, huge market. An occasional bad report from NPD, which measures a sliver of what's actually happening in gaming gives people an erroneous impression," he stressed.

    Gibeau continued, "My point is it's an irrelevant measure on the industry. It's totally irrelevant. We don't even really look at it internally anymore. We're more focused on our services and how we're connected with consumers. The number of Nucleus accounts we're growing, the amount of engagement time that we have, the amount of services that we're running - those are more important metrics for us than unit sales according to NPD and North America. So your original question is about what comes next. It's growing. It's booming. It's big. Things are good. If cloud and streaming come on line at scale, we'll be in the position to do it and we're excited about it."
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  2. #2
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    Consumers better be getting some kind of benefit then. Reduced prices or something.


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    $#@! that. Then I won't buy any of their games anymore. Digital sucks, physical media is way better.


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    Well, mark my words: the day gaming goes digital is the day gaming dies. No way I'm going to support a digital only infrastructure where all the power is held by publishers and I CANNOT own the game PHYSICALLY and do with it as I PLEASE, be that SELL, LEND, BURN or RETURN.

    EA, $#@! YOU.
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  7. #6
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    The only thing that should be digital is PR0N


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  9. #7
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    Quote Originally Posted by Shin Asura View Post
    I don't see them becoming 100%, unless they want to lose some of their market. Then again the people without a high speed connection probably don't play a lot of games



    Source
    That isn't close to being true. I live in a rural area and tons of people out here game. It's just the damn internet providers don't want to provide internet. Until this happens it would be moronic to go completely digital. Taking money out of your own pocket. I have At&t Wireless Broadband but in no way do I get the perks of regular broadband services. That includes the 5 GB limit i get a month.

    As for EA, $#@! off. I love how a company so hated does and says things that just make them even more hated. Everytime EA makes a statement Kottick actually smiles.




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    Upgrade our infrastructure to support this 100% DD, not just EA but everyone who will be changing their distribution to full digital PERIOD! then we'll talk.


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    Thy put too much into Origin for it to fail, its obvious it was going to happen digital is the future.
    USA government needs to do something so USA can not slow down progress all I see is Amercians complaining about internet speeds and limits in this thread.

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    Quote Originally Posted by D3seeker View Post
    Upgrade our infrastructure to support this 100% DD, not just EA but everyone who will be changing their distribution to full digital PERIOD! then we'll talk.
    Agreed. As for now EA stands to lose alot of their market if they go this route.

  15. #11
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    Quote Originally Posted by Shin Asura View Post
    Then again the people without a high speed connection probably don't play a lot of games
    Completely Wrong.

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    I hope this DD model blows up in EA's face and they fail.

    I would only embrace this if it meant that games would in turn be much, much cheaper.

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    Quote Originally Posted by Joe Zombie View Post
    I hope this DD model blows up in EA's face and they fail. I would only embrace this if it meant that games would in turn be much, much cheaper.
    Yep there would definitely need to be a good discount in price.

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    Have fun EA. You won't be getting a dollar from me.

    I will never support full digital distribution. Once full DD hits, i'll play at a friend's house or go without. What a flawed idea.


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    Console gaming = physical distribution.
    PC gaming = digital distribution.

    If you want to change this, I'll stop playing video games.
    Thanks to Kwes for the avatar and Sylar for the signature!


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  23. #16
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    the day games go digital only is the day i stop being a gamer.

  24. #17
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    Quote Originally Posted by TDbank24 View Post
    Have fun EA. You won't be getting a dollar from me.

    I will never support full digital distribution. Once full DD hits, i'll play at a friend's house or go without. What a flawed idea.
    You too, huh?




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    I buy a lot of EA games, looks like that'll stop.
    I only get 80 GB bandwidth, and I dont like spending more then $10 on digital games (there is exceptions, such as walking dead and I'm waiting for Two Worlds II GOTY to be $25) but yeah

    Quote Originally Posted by Blacksite View Post
    Console gaming = physical distribution.
    PC gaming = digital distribution.

    If you want to change this, I'll stop playing video games.
    So true.

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  26. #19
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    I'm fine with them failing and showing all the other publishers that DD only at this point isn't a good idea

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    EA is about to get a real good dose of reality if they think they are going to shift to 100% digital right now.

    They will lose so much money so quickly.
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    EA will lose some of their market by doing this, but at the same time they're securing themselves in the changing digital world. If only they would change their business model as well to something better.


    Also, people seem to forget that the PC platform is almost entirely digital now.
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  29. #22
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    EA are not going to start implenting digital only this year or next year or the year after, it may not happen for at 5 or more years which by then you all will have better internets and some will have fibre optic to the house and it will be dirt cheap and with no caps limits.
    Last edited by keefy; 07-03-2012 at 01:29.

  30. #23
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    If DD so far has taught ME anything its that digital is a no go personally. I know a lot of people like the convenience but pricing is always HORRIBLE. New release games, Spec Ops: The Line on PSN is AU$99.95, in a local JB HI FI its $69... You can't compete constant retail sales and borrowing games of friends and buying second hand games for next to nothing. EA, if you want to compete, you have to get very VERY competitive and at least MATCH what the game costs at retail. *This might just be an Australian problem I'm not sure

  31. #24
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    As I've stated before, once all these companies go digital-only that will be my last time as a gamer. We're currently in a gaming hell as it is. then to give them even more power with Digital-only? Haha, child please.


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  32. #25
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    It's going to be inevitable. Be it next generation or the one after, Digital Only gaming will become a reality for home consoles. One thing that I ask is for games to be a lot more cheaper compared to retails and have discount sales from time to time(Kind of like what Steam is doing).







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