While there’s certainly a need for a broader perspective when it comes to PC digital download game retailers, EA’s approach seems to be the exact opposite. The publisher has vowed not to offer the same deep discounts as rival (and vastly superior for the moment) service Steam, under the excuse that it cheapens the IP on offer.
“I know both sides of it, I understand it. If you want to sell a whole bunch of units, that is certainly a way to do that, to sell a whole bunch of stuff at a low price. The game makers work incredibly hard to make this intellectual property, and we’re not trying to be Target. We’re trying to be Nordstrom,” according to Origin chief David DeMartini.
“When I say that, I mean good value, we’re trying to give you a fair price point, and occasionally there will be things that are on sale you could look for a discount, just don’t look for 75 per cent off going-out-of-business sales.”
EA’s Strategy and Market Position
EA’s strategy with Origin is to position itself as a premium service in the digital game retail market. By avoiding deep discounts, EA aims to maintain the perceived value of its games. This approach contrasts sharply with Steam’s frequent sales, which often see games discounted by as much as 75% or more. Steam’s strategy has been highly successful in attracting a large user base, but EA believes that such deep discounts can devalue the intellectual property and the hard work that goes into game development.
DeMartini’s comparison of Origin to Nordstrom, a high-end department store, versus Target, a discount retailer, highlights EA’s desire to be seen as a provider of quality and value rather than just low prices. This strategy is not without its risks, as it relies on consumers being willing to pay higher prices for what they perceive as higher quality or more valuable content.
Consumer Perception and Market Dynamics
Consumer perception plays a crucial role in the success of any retail strategy. While some gamers may appreciate the premium positioning and the perceived value of not heavily discounting games, others may be put off by the higher prices. The gaming community is diverse, with different segments valuing different aspects of their purchasing experience. Some gamers prioritize getting the best deal possible, while others may be more concerned with supporting developers and ensuring that the games they love continue to be made.
Moreover, the market dynamics of digital game retailing are constantly evolving. New competitors enter the market, and consumer preferences shift over time. EA’s strategy with Origin must be adaptable to these changes. For instance, the rise of subscription services like Xbox Game Pass and PlayStation Now offers gamers access to a large library of games for a monthly fee, which could impact the traditional model of buying individual games.
Additionally, the success of platforms like Epic Games Store, which offers free games and exclusive titles, shows that there are multiple ways to attract and retain customers in the digital game retail space. EA’s challenge will be to balance its premium positioning with the need to remain competitive in a market where consumers have many choices.
In conclusion, EA’s approach with Origin reflects a deliberate strategy to maintain the value of its intellectual property by avoiding deep discounts. While this may appeal to some consumers, it also presents challenges in a competitive and rapidly changing market. The success of this strategy will depend on how well EA can communicate the value of its games and adapt to the evolving preferences of gamers.
Source GamesIndustry International
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