EA Executive Admits Used Games Aren't All Bad

EA Executive Admits Used Games Aren't All Bad

image

Electronic Arts CFO Blake Jorgensen says trading in an old game in order to buy a new one is "not a bad thing at all."

It's accepted as gospel that videogame publishers hate the used games trade because they get no cut of the market. You would think, then, that rumors about the next generation of game consoles not supporting preowned games would make the guys in the suits very happy. Yet the chief financial officer at EA says that's not necessarily the case, because used games have been "critical" for the health of the retail sales channel, and a healthy retail sales channel is important to the industry as a whole.

"The business will probably never be 100 percent digital. Bandwidths are a constraint, and will continue to be a constraint for many years to come, which hold back the ability to do full digital downloads of some games," he said at the Goldman Sachs Technology and Internet Conference. "So at the end of the day, it's storage capacity. Unless you've got a giant storage server in your house, keeping hundreds of games can tax your storage capacity. And so having a healthy retail channel out there like GameStop or Best Buy or others is important, and to the extent that used games is important to them, I think that's a positive."

EA would obviously prefer to sell everything at full price, but the used game trade creates "liquidity" and that's good for everyone. "If someone goes in and trades in a game, there's a good chance they're going to buy another one of our games," he said. "And so if there's a liquid market, I think that that's not a bad thing at all."

As for the rumors about anti-preowned technology in coming consoles, Jorgensen said the trend toward anti-preowned technology at the hardware level is "going to create some issues going down the road," but didn't sound entirely positive about the prospect, adding, "I think that the consumer likes [the used games trade], and it's been good for the retail channel."

It's a rather unexpected perspective from a top executive at a major game publisher, but EA seems to be in the mood for honesty these days: The company acknowledged yesterday that Medal of Honor: Warfighter was a bomb not because gamers are tired of the genre, but simply because it wasn't a very good game.

Source: Gamasutra

Permalink

Did EA have a come to Jesus meeting in their board room? They're admitting alot of things lately about their previous actions and policies.

Ah, I see EA has finally enslaved some decent PR guys.

Scorpid:
Did EA have a come to Jesus meeting in their board room? They're admitting alot of things lately about their previous actions and policies.

I know right? if EA was personified I think it would resemble "that guy" that would drown his misery in booze and be all like "I'm sorry bro, I love you guys." before vomitting all over himself again.

... huh.

(Damn you, low content rule!) It's surprising to hear this. The way they've been going, I was expecting EA (among others) to keep fighting used games sales until years after they realize they are seriously suffering from their policies.

We're experiencing some kind of good PR boom from EA. Did they get an entirely new PR staff or something?

Combustion Kevin:

Scorpid:
Did EA have a come to Jesus meeting in their board room? They're admitting alot of things lately about their previous actions and policies.

I know right? if EA was personified I think it would resemble "that guy" that would drown his misery in booze and be all like "I'm sorry bro, I love you guys." before vomitting all over himself again.

Well, this is the CFO who we don't hear from very often, he kind of reminds me of a sensible guy in a group of narcissists. I can just imagine a meeting between this guy and John RicketyCalico

"Hey John, I was reading up on some of your new policies... yes, yes they're certainly interesting... it's just, I think they won't be good for us in the long... no, I wasn't implying--I just... well, as the finance guy I thought...Okay, very well."

Oh sorry. I thought the planet I woke up on today was Earth, it appears I was wrong.

DOn't be fooled! I my fellows have a theory that EA is going on a campaign of good PR before the next console generation hits and they proceed to fuck people again as most are used to. Stay ever vigilant and take their words with a hefty pinch of salt.

Today, this article. Tomorrow, "EA CFO Blake Jorgensen Fired" or "EA CFO Blake Jorgensen Found Dead" or something like that.

MrStab:
DOn't be fooled! I my fellows have a theory that EA is going on a campaign of good PR before the next console generation hits and they proceed to fuck people again as most are used to. Stay ever vigilant and take their words with a hefty pinch of salt.

Damn right!

So this is what a parallel universe feels like...huh..
Mind if I stay?

Uh, EA? You know you have to go to a church for confession, right?

In all seriousness, this isn't some PR mouthpiece EA hired to read a statement. This is the guy in charge of THE WHOLE COMPANY'S MONEY! I hope the others are listening, cause he seems to be the only one there with even a little common sense right now.

Scorpid:
Did EA have a come to Jesus meeting in their board room? They're admitting alot of things lately about their previous actions and policies.

maybe CFO Blake Jorgensen found Jesus and wants to be a better person by fixing some of the mistakes EA has done over the past 2 years

or maybe, just maybe, EA has employed humans and are run by humans that can make bad decisions and reluctantly at first, dont want to admit that they were wrong, but then get a hold of themselves and do apologize instead of trying to cover the suspicion that EA IS RUN BY SNAKE PEOPLE!

Maybe there was a throwdown in the boardroom and people are looking to air out each other's dirty laundry.

Or do you think, maybe, just maybe, that EA finally put a computer in the boardroom, and the big C's started browsing forums?

ok so first EA says they wont fix the exploit in DS3 which renders the microtransactions useless, they admitted (sort of) that they screwed up MoH warfighter and now this....

is the world ending soon?

Used games are good for story-based franchises (Mass Effect) anyway. There's that sweet point when sales of a game have tailed off, and the sequel is about to come out... Many people won't buy the sequel without paying the original first, and used games give them a chance to do so at a more affordable and less risky price point, which in turn helps players know they like the game and leads to more sales of the sequel.

Economics guys have this nasty tendency to only look at the most direct effect of something (used sales = gamer gets game, we don't get money) without looking at longer-term indirect effects. They don't get that used games are still producing potential income.

P.S. Thanks

Today is opposite day? Why didn't i get the memo!

A big Yay for some PR guys with half a brain, or well, at least this CFO.

If I go into Gamestop looking for a new game...I don't see the $60 price tag in a vacuum. I see $60 minus the $30 I'm going to get when I trade it in two weeks from now. If trading it in wasn't an option, then except for a very, very few titles, I would just wait until the "new" price goes down to $30-$40 before I pick it up.

karma9308:
Oh sorry. I thought the planet I woke up on today was Earth, it appears I was wrong.

You can't spell earth without EA. And that boys and girls, is why you have to buy the vowels.

now, do some decent sales on origin and we can talk like you arent the devils hellspawn on earth, EA ^^

VincentX3:
So this is what a parallel universe feels like...huh..
Mind if I stay?

Yeah; I'd like to remain here as well... But remember the LAST time that EA realized the negative impact it was having on the industry? For those of you that don't it comes in the wake of the "Sin to Win" thing for Dante's Inferno.

... EA? Are you feeling alright? Do you need to lie down, take some medicine? Cause you're sounding a wee bit strange at the moment...

Okay, these guys must be on the verge of doing something terrible if they keep spouting all this stuff that actually kind of has us liking them right now.

I'm waiting for the other shoe to drop.

I remember when EA came out with this

http://www.destructoid.com/ea-admits-it-blew-it-with-bullfrog-origin-and-westwood-69491.phtml

and then released Mirrors Edge and Mass Effect.

Things were looking up, Kotick was shooting his mouth off, things were looking up.

Today however

http://www.forbes.com/sites/erikkain/2012/04/09/why-ea-won-the-worst-company-in-america-award/

I'm not going to be taken in that you've changed again EA.

Tahaneira:
... huh.

(Damn you, low content rule!) It's surprising to hear this. The way they've been going, I was expecting EA (among others) to keep fighting used games sales until years after they realize they are seriously suffering from their policies.

My reaction as well. I'm not holding my breath here though.

VladG:
Ah, I see EA has finally enslaved some decent PR guys.

looks like it. also nice caveat, we only like used games if that measn the guy will buy more of our games.

i guess we once again shoudl look at thier actions (origin) and not words (admitting they want us to tradei n old games so we could buy new ones). you know, this also fits well with "shut down servers in 2 years because everyone already sold their copy fo the game' strategy.

If EA keeps going on like this, they may end up slightly higher on my list than Activision. Still not that high mind you, but it'll be a start.

I think that's the first time I've ever seen someone from EA say something (anything) intelligent.

Quick, someone check hell to make sure it hasn't frozen over and that there isn't a giant astroid meandering towards earth!

I like this guy. Of course, being a PC gamer, I can't buy or sell used games anyway. Fuck you, Steam/Origin/Uplay.

 

Reply to Thread

Log in or Register to Comment
Have an account? Login below:
With Facebook:Login With Facebook
or
Username:  
Password:  
  
Not registered? To sign up for an account with The Escapist:
Register With Facebook
Register With Facebook
or
Registered for a free account here