EA Sports reveals "Ten Dollar"-like plans
Moore keen to "monetise", "digitise".
Peter Moore has spoken of digitising and monetising Madden and EA Sports games, suggesting that his department be the next to employ "Project Ten Dollar" measures.
"It keeps the disc in the drive longer, it stalls trading the game in, it allows me to be able to take further advantage of that consumer over a longer period of time," said Moore at a Morgan Stanley Technology conference reported by IGN. "Even if we do get second sales, we see that as an opportunity to drive digital margins."
"Sports games, because their seasonality runs out, are always something tempting to trade in. We've got to be able to build business models around allowing that consumer to trade it in and then monetize them".
However, Moore didn't specifically name "Project Ten Dollar" - EA's anti-trade-in manoeuvre that gifts a DLC platform with first-hand retail copies of games that must be bought for around $10 should someone buy the game second-hand.
Moore added that we're going to see "digital subscriptions" and "digital micro-transactions" crop up in EA Sports games. Snatching another $4/5 from a high install base is a "high margin digital revenue", explained Moore.
What's more, Moore's keen to do "a lot of that this year".
You may also like...
-
Why Can't Games Do Sex?
-
Remedy's message to Alan Wake PC pirates: "enjoy the story!"
-
Warp Review
-
The Kickstarter Conundrum
-
Assassin's Creed 3 release date announced
-
Dear Esther Review
-
NCsoft confirms Guild Wars 2 on console
-
Alan Wake PC version footage
-
Full-length Far Cry 3 cinematic trailer
-
Japan PlayStation Vita sales at lowest ever weekly total
-
Huge range of PlayStation 2 Classics storm European PlayStation store
-
Indie game Dear Esther profitable in less than six hours
-
Assassin's Creed Revelations getting Desmond single-player DLC
-
Bethesda on Skyrim's viewable Morrowind, Cyrodiil: "maybe we'll use it one day"
-
App of the Day: Tongue Tied!
-
Valve selling a virtual Team Fortress 2 ring for $100
-
Solitaire Blitz Preview: Why PopCap's Approach to Facebook Gaming is Anything But Casual
-
UFC Undisputed 3 Review
-
Capcom registers new Darkstalkers trademark
-
Notch can match Schafer's $13m Psychonauts 2 budget valuation
-
Far Cry 3 release date revealed by leaked trailer
-
Ubisoft and TrackMania dev announce ShootMania Storm
-
Syndicate launch trailer blasts out the dubstep
-
PS3 exclusive JRPG Ni No Kuni out in Europe Q1 2013
-
The Walking Dead screenshots shamble in









Comments (58) Latest comment 2 years ago
Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Even myself who's Eurogamer every day, thought that the Cerberus code in Mass Effect 2 was initially something to ignore. Thinking it was something along the lines of ubisofts 'Uplay' - I've still no idea what that is, and have no intention of finding out!
If EA are genuinely giving people stuff for free (Which is great with Mass Effect 2 - debatable with BC2) then great, but at least make some effort to let us all know about it.
Comment below viewing threshold Show
Cunt.
Comment below viewing threshold Show
Men in suits with bar charts make the decisions now, not people who like, understand or even want games. I think my 360 will be my last console.
Comment below viewing threshold Show
For a man paid such a vast amount to be ,in part, a spokesman, that is an incredibly poor choice of words.
Comment below viewing threshold Show
Bad09 added that EA are going to see "his money" crop up less on EA Sports games.
I tell ya I want to go back a generation now, all these money men this gen are killing my hobby with their bloody DLC and milking.
Comment below viewing threshold Show
Comment below viewing threshold Show
- for mentioning a cardinal sin?
Comment below viewing threshold Show
I whole heartedly agree with EA's stance at combating the pre-owned market.
the Pre-owned market robs Developers of hard earned profits and ultimately stifles creativity and innovation. Don't think it does? Well, you're wrong.
Without the money to pay wages and overheads, companies have to stick with what they know rather than trying something new that might not succeed. If you want to see more new and exciting games buy them new, give the Developers the money that they worked hard for and see what happens.
Buying and selling games to a degree is fine, its the consumers right after all. But it has completely taken over. It's ridiculous that Game and Gamestation now have (at a guess) around 75% of shelf space dedicated to pre-owned games.
Anyway... rant over
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
That's an outrageously jarring quote.
Only in the darkest depths of the fat cat corner offices are such things bandied about openly.
Consider : 'looking to keep the consumer engaged with quality products and services over a longer period'. At least with the latter comment you can try and believe that some small part of the corporate soul believes this - particularly because that is the best way of building a happy customer base who will return for repeat business.
But ' taking advantage of'?! You're having a giraffe.
I will be very surprised if that quote is not retracted in some way.
Comment below viewing threshold Show
The attack on the pre-owned market is all about publishers profit margins and has shite all to do with developers. It's all about creaming as much money as possible, which is why they simply don't drop prices. As for the generality of claims that pre-owned gaming is ruining the industry (an industry that is still bauking after wandering into a recession with claims of being untouchable) I've yet to see the numbers on that one. The assumption that everyone who buys a pre-owned game would have bought it new shows the same level of naivety as when the same argument is used to try and sell the extent of piracy.
That's not even touching how the ability to trade in titles sells new games so releases like MW2 can get all that press breaking all of those records. Or how pre-owned is foten the ONLY way to purchase a game beyond 6 months of it's release.
As for 75% of shelf space dedicated to pre-owned games, No.
Piracy? Second-hand trade ins? The biggest problem with the industry is the monopoly the EAs and Activisions have over it. Thats what stifles your innovation and throttles developers. That's what keeps the prices nice and high and forces the ridiculous situation we are in with DRM and DLC.
Comment below viewing threshold Show
If you want to stop trade in on annual releases the only way to do that is to offer a means to update last years release to a current one at a reduced price.
Comment below viewing threshold Show
AND PEOPLE DO!
Never ceases to amaze me
Comment below viewing threshold Show
Didn't Kotick do the same thing a few years ago? He probably meant it literally though, of course.
Comment below viewing threshold Show
"the developers make their money from the project fees paid by publishers"
Not true. And I know first hand, trust me. Developers will get paid at various milestones through development but they also (in some cases) get profit related bonuses. These are the guys doing the art, code and design of the game. And they get rewarded for the number of copies being sold. therefore if everyone buys pre-owned these guys aren't getting rewarded for all their hard work.
"That's WHY the majority of game developers are owned by EA or Activision"
I call this as bullshit without cold hard data to back it up. sorry.
"The lions share of the wholesale price of the game goes to the Publisher"
Bullshit again - the biggest share of a brand new game goes to retail. When the sell it on as pre-owned they then get all of the profit - none returns to the Developers or the publishers for that matter.
"The attack on the pre-owned market is all about publishers profit margins and has shite all to do with developers"
Dont agree with this either. Publishers in some situations commission Developers to make games. If they are unable to take risks as to what sort of games are being made due to profits falling then that impacts on the Developers. If I'm a publisher who is finding times hard I would much rather take a chance on a MW2 clone than something like an Okami game. It makes more sense. Now whilst the consumer might enjoy this, Devs hands are often tied as to the types of games they can make. The two are linked.
I could go on all day... but have other things to do unfortunately
Comment below viewing threshold Show
Comment below viewing threshold Show
I don't see any evidence that as publishers get richer they take on more risky or innovative projects. In fact, it seems exactly the opposite. It's clearly the struggling devs and publishers doing the interesting stuff.
Comment below viewing threshold Show
Could well be that this kind of information is not intended for game players and more intended for investment types.
Comment below viewing threshold Show
Comment below viewing threshold Show
(Prices are guessed by my last experiences. Have no time to search for proper values but this is just an example anyway).
Note: The game shop's running profits are listed in brackets
- GameShop sales new Game for £5 profit (£5)
- GameShop buys Game back from customer for £5 (£0)
- GameShop re-sales Game to a new customer for £30 (£30)
So form just the initial sale and 1 second hand sale the GameShop makes a profit of £30 on that game.
Now for everytime that game comes back the following happens:
- GameShop re-buys Game for (£5) (£25)
- GameShop re-sales Game to a new customer for £30 (£55)
So each trade-in and sale after the first GameShop makes an additional £25.
So say each game it sales is re-sold once they make £30 profit, twice is £55 profit and three times is £80 profit.
With game shops putting more and more emphasis on second hand games over new and the fact that most people I know who buy second hand also re-trade the games, I wouldn't be supprised if a lot of games go around 3 times. That means that is £80 gone directly to the shop and not on supporting the development of the games you love so much.
Ideas such as 'Project Ten Dollar' do nothing to screw the end user over, but game reviewers NEED to review the game WITHOUT the addition of the 'Project Ten Dollar' and DLC add-ons so that customers know what they will be getting and to make sure no dodgy companies start removing things from the games just to add them in later.
Comment below viewing threshold Show
(I know this is an ancient argument)
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
There are already about 80 DLC packs for NHL 10 which allow you to boost your player artificially, therefore essentially paying for an advantage online without putting the hours in to naturally boost your ability. I thought that was bad enough, but I can't see how they can impliment '10 dollar' into a sports title without locking crucial content if you don't have an unlock code.
Comment below viewing threshold Show
Comment below viewing threshold Show
It sounds like two conflicting business models to me.
Or greed. Pure greed.
I eagerly await next year's press release complaining that the DLC worked so well that no-one bought FIFA 11, Madden 2011, etc etc....
Comment below viewing threshold Show
Comment below viewing threshold Show
That sums it up really, if it's not 'important' content they wouldn't make much money from it, it's going to have to be something reasonably substantial to either get you to pay up or think 'sod it, I will just buy the new game'.
I would have said that it would be a risky strategy given that not everyone is online to use the unlock code...but Forza 3 LE has proved you have a successful game that ties an awful lot of content to having a Gold Live account.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
*multiplayer unlocked via downloadable content**
**$40
Comment below viewing threshold Show
The only time they should then release a new game would be to box it with the new updates (for people who haven't got access to download them) or for when there is a big change to the gameplay or engine.
If they do go this route then it would be nice if everyone gets an initial update for free to take it to the current stats and the 'Project Ten Dollar' voucher allows the player with it to get a number of future updates.
Comment below viewing threshold Show
So would everyone, and they'd do that instead of buying the new game for £40. Which is, of course, why it will never happen
Comment below viewing threshold Show
One day a game will come out with updates like that and it will pretty much force the way for the others. Why would you spend £40 on game X every year when you can have game Y for one off payment of £40 then £5 a year?
Also remember they could and would still release new versions that have better graphics, control schemes, etc. and these would be full purchase only. So you want a better game, then you buy a new one but you just want updated data then you download it.
Would you seriously still be playing one of the original Fifa games if the data was updated or would you have bought a newer engine?
Comment below viewing threshold Show
I'd probably buy one every few years when significant improvements have been made (in theory - I'm a PC player and they've barely made any improvements for over a decade). I also agree it would be much better for the consumer if things were done that way.
It might make a difference with some extra revenue and fewer second-hand sales, but I feel pretty confident saying releasing a new version every year (or even more often) as they currently do is a hugely more profitable strategy.
Comment below viewing threshold Show
Companies like EA need this project Ten Dollar crap because they churn out rubbish every year. For certain games, it's hard to find a preowned copy because it's quality and if you do it won't be that cheap.
I rmemeber the good old days when I used to sawp games with friends. This trade in rubbish has only created a way to milk gamers for more money and now the developers will start to get in on the act and think of a new way to milk us for cash.
Comment below viewing threshold Show
Second hand sales allow people to experiment and play the games that are initially gambles, a lower price point after all is a lower risk. These plans are seriously going to hurt start up studios and talented development teams as Retailers will carry fewer second hand games.
As an Ex-Game employee, second hand sales are a massively important part of their buisness model. The regional manager on a visit to our store in West London claimed that 75% of the region's profits came from second hand sales after all.
While certainly no fan of Retailers, I think that the plurality of choice offers the consumer a much better deal than what we seem to be moving towards, where the publishers and the platform holders decide on a seemingly abritary price that they think they can get away with charging. If they can decrease the number of ways to acquire content, it's only going to increase the amount they feel they can charge us.
Comment below viewing threshold Show
All he did is spell out in plain terms what every profit driven company is doing. Every games publisher, and indeed every company outside of games, wants to make the most moeny they can out of each customer. Attracting new customers is extremely hard work, so making additional money out of existing customers is an attractive prospect.
"Not even trying to sugar coat it."
So in a nutshell, everyone would prefer to be lied to in a way they can easily spot, than be told the truth directly. Peronally, I take more offense and being lied to badly as it implies I am too stupid to spot the lie. Being told straight that I am a source of money for the companies that I buy products from is far more preferable.
This sort of thing really baffles me. Its as if the bubble has burst, people have discovered that the world does not see them as a charitable cause, and the revelation has driven them mad with rage.
I am NOT in any way defending his attitude. I am just pointing out that his only crime over his peers as I see it, is brutal honesty.
Comment below viewing threshold Show
That is an unsafe statement. It is equally possible that second hand sales shore up a higher priced first hand market.
You said youself "You pay full price for the priviledge of playing it at release and being part of the hype machine". For the many gamers who won't pay for that priviledge, the removal of the second hand market means they will end up buying less games. Remove the option for first hand buyers to trade in their games, and they too might end up buying less new games. both of these reactions COULD actually result in a lowering of first hand game prices (because at the end of it all, the only thing really controlling the price of games, is whether people buy them or not).
I don't know which way things will go, but I know its not as straight forward and predictable as you are suggesting.
Comment below viewing threshold Show
I get free DLC and when I'm done with the game I still get the same trade in value that I would of anyway. Regardless if DLC is coming in the future I can usually tell if I'm going to keep a game or not in the first few hours of play. At the end of the day any substantial DLC is going to be charged for on the MP/Store - this is EA after all....
I bought Bioshock 2 and could of returned it to Gamestation within 10 days for a full refund (store credit), I wrapped up the single player in a few days but I'm having a blast with the multi so I decided to keep it.
Comment below viewing threshold Show
Comment below viewing threshold Show
"oh dear, made the mistake of reading the latest comments while not logged in"
Yeah. You miss me really
I'm not sure how I might not write in monotone given this is text. And to be honest, playing devil's advocate in the face of a tsunami of exagerated outrage is bound to bring the same "stating the obvious" out of me on a repeated basis.
Every time somebody says something even remotely less than angelic, the same bunch of people act like someone punched their grandma. It is FAKE outrage I say. It is the stuff Daily Mail editors are made of. All this guy did was state the obvious the way I apparently do.
Comment below viewing threshold Show
A fair point. Critisism is fine. A little less rightous anger is all I ask for
Comment below viewing threshold Show
It's not a problem I have as such with the $10 DLC for secondary users, but EA's business model for the last two years.
Im an avid EA Sports fan (even though that is starting to wane). NHL 10 was the start of the problems from my point of view. The endless unlockable (paid) content that was featured in the game started to make the game feel cheap and tacky.
'IF IT'S IN THE GAME, IT'S IN THE GAME' is the tag line of the company. Really? Are bobble hats an integral part of hockey? Are artificial boosts really adding anything to anyone's enjoyment of the game (aside from aiding the cheesers of this world)?
Madden 10 also took this to a new level. Paying to stop a player from retiring had to be a low point of these new additions.
For anyone who loves sports, grab a copy of MLB the show 10. A fantastic sports sim that relies on gameplay and not cheap gimmicks.
EA Sports this is a make or break year for you. People pay enough to support your company (£40+ per game).
Keep it up with the wallet and energy sapping add ons and you won't have anyone left to sell the game too, leaving the DLC points mute.
We should all be reviewing your product on the thing that matters (the game itself), not this subsidiary BS!
Comment below viewing threshold Show
This is as spurious as the claim you are trying to refute unless you can provide some sort of evidence or statistics to back up your argument - saying it's basic economics is not enough. If it's obvious, proof or evidence should not be hard to find.
Comment below viewing threshold Show
Perfectly put.
I'm buggering off now. Even I'm sick of the sound of my own voice
Comment below viewing threshold Show
Somehow Moore managed to turn that into consumer exploitation, massive PR mistake.
Comment below viewing threshold Show
But prices have come down, have they not? And this has been happening while the second-hand market is booming.
Comment below viewing threshold Show
If we're talking simple economics, the way I see it is
1) increased demand for new games leads to increased prices
2) no price competition from used games leads to increased prices
3) smaller choice of retailers selling games means increased prices (Game etc. couldn't survive without pre-owned revenue, and even if they could prices would rise to compensate)
I warn you I'm not capable of going much further than "simple" economics however
Comment below viewing threshold Show
One point we can certainly agree on is that there would be more shelf space for a wider variety of games, and perhaps encourage a longer tail (as long as publishers are willing to lower RRPs as time goes on), and that can only be a good thing.
Comment below viewing threshold Show
It doesn't help that you close the servers when the next annual edition is released.
Comment below viewing threshold Show
Comment below viewing threshold Show