|
Home > Archive > Xbox forum > February 2005 > EA CEO on NEXT-GEN game costs, console release dates
You are viewing an archived Text-only version of the thread.
To view this thread in it's original format and/or if you want to reply to
this thread please [click here]
| Author |
EA CEO on NEXT-GEN game costs, console release dates
|
|
| Killah Gorillah 2005-01-26, 4:04 am |
| NEXT BOX wrote:
quote:
> http://www.gamespot.com/news/2005/0...ws_6117086.html
> Probst: Next-gen games will cost more
>
> EA CEO says while strong demand supports current top-tier pricing, games for
> new handhelds and next-generation systems will be priced higher.
> If Electronic Arts CEO Larry Probst and CFO Warren Jenson have a crystal
> ball, they aren't telling analysts where they keep it. Ball or no ball, the
> pair freely prognosticated in today's earnings call, held shortly after the
> US markets closed.
>
>
>
> A couple of interesting comments flowed from the two gentlemen today on the
> longevity of top-tier titles' $50 price tags (they're not going away),
> premium pricing for PSP software (start rubbing those 20s together), and
> even higher prices for next-generation games.
>
> As is typical with earnings calls, the presenters started out with one
> theory, but when pressed, they ended with others. For instance, Probst
> prepped listeners for good news by saying prices are coming down. "Overall
> pricing will trend downward over time," he said. "It's just going to
> happen."
>
> But Probst's mantra of lower prices began to falter when pressed by
> additional analyst questions. "My comment would be that premium products
> will continue to command premium prices, so I would not expect a huge
> difference [in prices for calendar year '05]," said Probst, shifting
> slightly from his earlier comments. "If you take a look at the average
> selling price in the top 20 in calendar '05, compared to what it was in
> calendar '04.in fact, if you trend it over the last three or four
> years...that average selling price in the top 20 has been somewhere between
> $45 and $50. I would not expect a huge variance from that in '05."
>
> But when the subject turned to pricing for next-gen console games, Probst
> acknowledged price hikes are likely. "It would not surprise me to see
> selected titles carry a higher price point on new-generation consoles, at
> least initially." (Emphasis added.)
>
> On the topic of next-gen consoles, Probst was hopeful Microsoft would not
> cease production of the current Xbox console as it ramps up to manufacture
> Xbox 2 consoles, as some have speculated. He also made some modest
> predictions for who would be first to market with its new platform, Sony or
> Microsoft.
>
> "I would not expect Sony to have a head start on the next generation of
> hardware console systems," Probst said. In fact, Probst laid out a scenario
> whereby the PlayStation 3 might not make it stateside until late 2006. "[It]
> remains to be seen whether there will be new console launches from either
> Microsoft or Sony [in calendar year '05], and [it's] probably impossible to
> predict whether it's early or late '06 for [the] PlayStation 3. It might
> turn out that [the] PlayStation 3 is launched earlier in Japan than it is in
> North America and Europe."
>
> Overall, the execs were mum on specifics regarding the launches of Sony and
> Microsoft's new consoles. "With regard to when those systems are going to
> launch, you will have to speak with them," Probst said, but overall, Probst
> expects a much tighter race between the two leading console makers."With
> regard to market share, I would predict that the two companies are closer in
> market share than they were in this cycle." He did not make any mention of
> Nintendo's next-generation console, code-named "Revolution."
>
> By Curt Feldman -- GameSpot
> POSTED: 01/25/05 05:12 PM PST
>
>
>
How interesting that an EA exec is talking about game prices on the next
generation of consoles. It's almost like they're planning to use their
monopoly/power to gouge prices. Anti-trust time, methinks.
| |
| Asylum 2005-01-26, 12:07 pm |
| Thats the same thing I was thinking!
quote:
> How interesting that an EA exec is talking about game prices on the next
> generation of consoles. It's almost like they're planning to use their
> monopoly/power to gouge prices. Anti-trust time, methinks.
| |
| RnR Lesnar 2005-01-26, 12:07 pm |
| But the price goes up for just about everything we buy over time. We can't
expect games to be priced at $49.99 forever.
RnR Lesnar
"Killah Gorillah" <th@t.XXXXX> wrote in message
news:10veii0m0sqbmdd@corp.supernews.com...
quote:
> NEXT BOX wrote:
>
> How interesting that an EA exec is talking about game prices on the next
> generation of consoles. It's almost like they're planning to use their
> monopoly/power to gouge prices. Anti-trust time, methinks.
| |
| Zimmy 2005-01-26, 12:07 pm |
| That's right. Those darn calculators are still so expensive, aren't they?
And $40 for a box of 1.44 inch floppies is still insane.
But I guess, over time, we have to expect that.
"RnR Lesnar" <rnrnospamcartman@hotmail.com> wrote in message
news:ct8e37$gil$1@news.datasync.com...
quote:
> But the price goes up for just about everything we buy over time. We can't
> expect games to be priced at $49.99 forever.
>
> RnR Lesnar
>
>
> "Killah Gorillah" <th@t.XXXXX> wrote in message
> news:10veii0m0sqbmdd@corp.supernews.com...
>
>
| |
| Fred Liken 2005-01-27, 1:32 pm |
| Der... my name is Zimmy and I don't know what "just about" means...
Derrrr.....
Hickup!
"Zimmy" <zimmy@msn.com> wrote in message
news:35psspF4ouf9sU1@individual.net...
quote:
> That's right. Those darn calculators are still so expensive, aren't they?
>
> And $40 for a box of 1.44 inch floppies is still insane.
> But I guess, over time, we have to expect that.
>
>
> "RnR Lesnar" <rnrnospamcartman@hotmail.com> wrote in message
> news:ct8e37$gil$1@news.datasync.com...
>
>
| |
| Jordan 2005-01-27, 1:32 pm |
| It doesn't surprise me that floppies are still so expensive:
http://www.officedepot.com/ddSKU.do...DSK&id=3D405791
Office Depot=AE 3 1/2" Bulk Diskettes, IBM=AE Format, DS/HD, Black, Box
Of 100
List Price - $66.50
Our Price - $29.99
I just bought a spindle of 50 DVD-R's for $29.99... Hmmm... 144 MB at
$0.208 per MB or 235 GB for $0.127 per GB? Decisions, decisions...
Think about it... how many moving parts does a CD or DVD have?
Mechanical media is just more expensive to make than non mechanical
media. Ditto for video tapes.
- Jordan
| |
| Fred Liken 2005-01-27, 1:33 pm |
| >Office Depot® 3 1/2" Bulk Diskettes, IBM® Format, DS/HD, Black, Box
quote:
>Of 100
>List Price - $66.50
>Our Price - $29.99
>
>I just bought a spindle of 50 DVD-R's for $29.99... Hmmm... 144 MB at
>$0.208 per MB or 235 GB for $0.127 per GB? Decisions, decisions...
>
>Think about it... how many moving parts does a CD or DVD have?
>Mechanical media is just more expensive to make than non mechanical
>media. Ditto for video tapes.
>
>- Jordan
Not to mention that the laws of supply and demand would drive the price up
as the competition for the supply dries out. Plus losing benefits of
producing larger lots at a time.
For games, it seems a bit that production costs have gone up, but so has
number of sales, so those kind of work against each other as a necessity to
raise price.
A lot of it comes down to the fact that the games industry has come of age,
and the businesses have to have growth to appease the new investors that
might not necessarily give a crap about the industry or the product, or
anything other than growth. There's two ways to increase the revenues.
Sell more copies or sell the copies you do sell for more. If you've bought
up all the competition, you can do that.
Luckily there's Nintendo, and companies like them, in the mix, though. EA's
really just a bunch of derivative crap anyways, it seems.
| |
| Bobby Butane 2005-01-31, 4:31 am |
| If we don't pay those prices. They don't charge those prices. Keep your
wallet closed for anything that's released over 50 dollars. It's the
reason I didn't own Warcraft III .
| |
| Arcane Hayter 2005-02-13, 12:42 pm |
| I agree, I wonder if there's any correlation between the price a game
is released at how often its illegally downloaded. Maybe this doesn't
pertain to consoles, but its something to ponder.
|
| |
|
|