In a recent financial call with investors, EA (Electronic Arts) has made it clear that it will not be following the trend of increasing game prices, despite competitors like Microsoft and Nintendo raising their prices to $80. CEO Andrew Wilson emphasized the company's commitment to delivering "incredible quality and exponential value" to its player base. He highlighted the success of their cooperative adventure game Split Fiction, which has sold an impressive 4 million copies, as an example of their focus on value over price hikes.
Wilson elaborated on the evolution of EA's business model, noting a significant shift from traditional retail sales of physical media to a broader spectrum of pricing models. "In a world where everything we did 10 years ago was about selling shiny discs in plastic boxes on retail shelves — well, that’s still a *part* of our business, it’s a significantly smaller part of our business, and we now have pricing representing everything from free-to-play all the way to deluxe editions and beyond," he stated. This approach allows EA to cater to a wide range of consumer preferences and budgets, from free-to-play games to premium editions.
The CEO further stressed that EA's goal is to provide exceptional quality and value regardless of the price point, whether it's a dollar, ten dollars, or a hundred dollars. "And what we've discovered over the course of time is [when] we can marry quality and value together, our business is strong, resilient, and continues to grow," Wilson added. CFO Stuart Canfield reinforced this stance by stating that there are no planned changes to their current pricing strategy.
This news comes as a relief to gamers, especially in light of recent announcements from competitors. Just last week, Microsoft confirmed it was raising Xbox prices, including controllers, headsets, and some games. While the price increase for consoles and accessories has already taken effect, game prices are expected to rise to $79.99 for new, first-party titles around the holiday season.
The trend of increasing game prices is not new in the AAA gaming industry, with prices jumping from $60 to $70 over the last five years. Nintendo has also announced $80 pricing for upcoming Switch 2 exclusives like Mario Kart World and other Switch 2 Edition games. The Switch 2 itself is set to launch at $450, a decision that has drawn criticism from fans, though analysts suggest it's inevitable amid current economic conditions.
Given EA's stance, fans can expect the next iterations of popular titles like EA Sports FC, Madden, and Battlefield to maintain the $70 standard edition pricing. This decision comes amidst reports of EA cutting around 100 jobs at Apex Legends developer Respawn Entertainment and making broader cuts across the organization, affecting approximately 300 individuals in total.
