News
EA Mobile: We must expand business models
Stuart O'Brien Jun 17 2008, 12:41pm
Comments (5)
Publisher calls for radical rethink of how mobile games are sold in Europe.
Electronic Arts says the European mobile games industry needs to broaden its business models in order to attract a wider audience.
The company, which estimates Europe generated a healthy 100 million mobile game downloads in 2007, insists the sector needs to move away from the one-off transactions that comprise 99 per cent of the market today.
In a press briefing this morning Javier Ferreira, EA Mobile's VP of European publishing, said: "Casual gamers are very risk averse and won't spend time researching what's on offer before they buy. Therefore we need to use techiques like bundling and subscription to reduce the perceived risk."
For example, EA Mobile says it has operator support for bundled offerings that would give users access to five games for a monthly subscription roughly equivalent to a one-off download.
EA says operators that have broadened their models, like Verizon in the US and 3/Bouygues in Europe - have been rewarded with higher average usage of games.
Ferreira added: "A hundred million downloads in 2007 shows that mobile games are no longer a niche product, but we need to close the gap between the five per cent of European mobile users Nielsen says pay to download a game and the 25 per cent that play [primarily embedded] mobile games."
EA has forecast that its own mobile revenues will increase 20 per cent in fiscal '09 to reach $185 million.
Comments
“*doh*”
Posted by: Happytree - Jun 17, 3:34pm
subscription and bundles?! tell us something new please...
“Re: *doh*”
Posted by: James - Jun 17, 3:40pm
Hold on a minute Happytree - that's the point isn't it? It's not rocket science but the European market still hasn't embraced these models. Isn't it about time it did??
“Re: Re: *doh*”
Posted by: Paul D - Jun 17, 3:51pm
What about a 'Comes With Games' model? I mean, why not? It's about time the market was shaken up a bit. Subscription have been talked about for years in Europe, but there's been no real traction. I'm not sure the Verizon model would work (£3 a month forever for one game until the user cancels doesn't exactly represent good value), but a well pitched offer providing access across the catalogue could work. And look at Guitar Hero Mobile - they're flogging thousands of song packs for that in the US.
“Re: Re: Re: *doh*”
Posted by: Happytree - Jun 17, 5:02pm
I get your point but lets talk about data flat rates and easy to get games for non tech pro users first... dont you think?
“Re: Re: Re: Re: *doh*”
Posted by: pmork - Jun 23, 5:17pm
Happytree is right. Until flat rate data becomes mainstream AND consumers are aware of that fact flexible billing will have only limited impact.