To Electronic Arts COO Peter Moore, retail is still primary for his company’s business. While the company is committed to digital sales, most of the revenue will come from retail, which also presents a viability bonus.
“Once we get that disk installed in the tray of an Xbox or a PS3, we then look at our consumer on an ARPU basis,” Moore said. “We love what retail does for us. We love its ability to create massive launches and create excitement. GameStop probably sees three million hardcore gamers walk through their doors every day, and that’s a marketing opportunity for us.”
Moore also believes that many consumers are still cautious about spending much online. “A lot of our consumers don’t own credit cards. A lot of our consumers are still afraid of what happened to the PlayStation Network when 77 million accounts were accessed by Anonymous in 2011,” Moore said. “A lot of our consumers prefer to go into retail buy those Xbox Live or PlayStation Network cards, and retail gets a very strong margin on that. For retail, if they can evolve to be not just a physical media purveyor, but a digital media purveyor, it’ll play a very strong role in our business going forward.”
Moore was also keen to emphasize the benefits of day one DLC. “The other key thing is selling digital content on the day of launch . . .When we sold Mass Effect 3 back in March, we saw a 40 percent attach rate that first week to DLC at GameStop in the United States. Not only are you selling a $60 game . . . you’re selling $20 DLC, so the sale becomes $80,” Moore said.
Source: Gamasutra
