Looking back on the exciting times of about five years ago, it’s fair to say EA misread the tea leaves of public opinion. The PS3 seemed like an overpriced, hard-to-develop-for mess, and the Wii seemed like, well, the Wii, but that wasn’t as good a thing at the time as it is now.
All of this led to a fumbling start to the next generation transition for the publisher, but EA says those days are behind it and it has free to play to thank for that.
“Through this last transition to the PS3 era… for a whole bunch of reasons that aren’t worth getting into in a short answer, I think it’s fair to say we dropped the ball,” says EA CEO John Riccitiello. It’s hard not to find his usage of the term “the PS3 era” both telling and amusing.
The Challenges of the PS3 Era
The PS3 era was indeed a tumultuous time for many game developers and publishers. The PlayStation 3’s complex architecture, which included the Cell processor, posed significant challenges for game development. Many developers found it difficult to optimize their games for the system, leading to higher development costs and longer production times. This complexity was a stark contrast to the more developer-friendly Xbox 360, which quickly became the preferred platform for many studios.
Moreover, the initial high price point of the PS3 deterred many consumers, leading to slower adoption rates compared to its competitors. This slow start affected game sales and, consequently, the revenue streams of publishers like EA. The Wii, on the other hand, was a unique case. While it eventually became a massive success due to its innovative motion controls and family-friendly games, it was initially met with skepticism from hardcore gamers and developers alike.
The Rise of Free to Play
But how did free to play turn EA around? “As the head of our Playfish division likes to say, ‘There’s no such thing as free to play… It’s play first, pay later,’ and that’s a very compelling model,” Riccitiello explained. You might not want to explain all the different types of bait to all the fishies there, John.
The free-to-play model revolutionized the gaming industry by offering games at no initial cost, allowing players to try them out without any financial commitment. This model relies on in-game purchases, where players can buy virtual goods, cosmetics, or other enhancements to improve their gaming experience. This approach has proven to be highly lucrative, as it lowers the barrier to entry and attracts a larger player base.
EA’s adoption of the free-to-play model allowed it to tap into new revenue streams and reach a broader audience. Games like “FIFA Ultimate Team” and “The Sims FreePlay” became significant sources of income, demonstrating the potential of this business model. Additionally, the rise of mobile gaming further bolstered the free-to-play market, with millions of players downloading and engaging with games on their smartphones and tablets.
The success of free-to-play games also encouraged EA to invest in live services, where games are continuously updated with new content, events, and features. This approach not only keeps players engaged for longer periods but also provides ongoing opportunities for monetization. Titles like “Apex Legends” and “Star Wars: Galaxy of Heroes” exemplify this strategy, offering regular updates and in-game purchases that keep the player base active and invested.
In conclusion, EA’s initial missteps during the PS3 era were a learning experience that ultimately led to a more adaptive and forward-thinking approach. By embracing the free-to-play model and investing in live services, EA managed to turn its fortunes around and secure a strong position in the ever-evolving gaming industry. The lessons learned from this period continue to shape the company’s strategies and innovations, ensuring that it remains a key player in the market.
Via Eurogamer
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