Electronic Arts plots a seismic shift in video game distribution — will it work?
Posted by: in Stocks Money NewsFiled under: Consumer experience, Marketing and advertising, Electronic Arts (ERTS)
While the runaway success of the Nintendo Wii showed that gamers are willing to try a very different kind of gaming system and that non-gamers were willing to try gaming in a more user-friendly format, Electronic Arts (NASDAQ: ERTS) is hoping that they’ll be equally receptive to a new way to receive and pay for their games.
The next installment in the game maker’s Battlefield series will be available for download online — for free. According to the New York Times, “Rather than being sold at retail, the game is meant to generate revenue through advertising and small in-game transactions that allow players to spend a few dollars on new outfits, weapons and other virtual gear.”
Battlefield Heroes will be released this summer. It marks a huge departure from the traditional method of delivery for video games. Of course, the question one everyone’s mind is, “Will it work?” Electronic Arts is betting that while most people will play the game for free, a cadre of hardcore gamers will spend money each month on new products. Meanwhile, the expanded audience will boost ad revenue.
This is the first time the company will try this delivery in the western world, and the choice of Battlefield, one of the company’s core franchises, indicates that it is serious.
Electronic Arts as a company has so far failed to capitalize on the industry’s recent strengths, but this innovative step could change that.
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