In a reassuring move for gamers, EA has announced it will not be following the trend of increasing game prices, despite competitors like Microsoft and Nintendo opting for a price jump to $80. During the latest financial call with investors, EA's CEO Andrew Wilson emphasized the company's commitment to providing "incredible quality and exponential value" to its playerbase. He cited the success of their co-op adventure game, Split Fiction, which has impressively sold 4 million copies, as a prime example of this strategy.
Wilson elaborated on the evolution of EA's business model over the past decade. "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, but it’s a significantly smaller part," he explained. Today, EA's pricing strategy spans from free-to-play models to deluxe editions, reflecting a diverse approach to meeting consumer demands. "At the end of the day, whether we're doing something that costs a dollar, or we're doing something that costs $10, or we're doing something that costs $100, our objective is always to deliver incredible quality and exponential value for our playerbase," Wilson stated, emphasizing that combining quality and value results in a robust, growing business.
CFO Stuart Canfield reinforced this stance by confirming no changes in EA's current pricing strategy are reflected in their financial guidance. This decision comes as a relief to gamers, especially in light of Microsoft's recent announcement to raise Xbox prices, including controllers, headsets, and certain games. The price increase for Xbox consoles and accessories is already in effect, and while game prices remain unchanged for now, new first-party titles are expected to cost $79.99 during the holiday season.
This move by EA stands in contrast to the broader trend in AAA gaming, where prices have escalated from $60 to $70 over the past five years. Nintendo has also announced a price of $80 for upcoming exclusives like Mario Kart World for the Switch 2, alongside other Switch 2 Edition games. The Switch 2 itself is set to launch at $450, a price that has stirred debate among fans, though analysts have noted it's inevitable amid current economic conditions.
Given EA's firm stance on pricing, fans can anticipate that future releases such as EA Sports FC, Madden, and Battlefield will adhere to the $70 standard edition pricing model. This commitment to maintaining current prices comes amidst news of workforce reductions, with EA cutting around 100 jobs at Apex Legends developer Respawn Entertainment and making broader cuts affecting approximately 300 individuals across the organization.
