Electronic Arts’ Peter Moore recently spoke at the Credit Suisse 20th Annual Technology, Media & Telecom Conference, and he had some interesting things to say. One of the most newsworthy quotes from EA’s CCO was when he discussed concerns over physical sales, and if hardware such as the PS4 Pro, PlayStation VR, and the Xbox One S were hurting software sales.
Here’s Moore explaining why he isn’t worried about physical sales:
I take a long-term view. If there are dollars being invested in hardware, that is great for the industry long term. I don’t worry as a video game executive about what’s happening this week, or this month, or this quarter. I’m actually enthused if this mid-cycle refresh, which is unique and exciting to us in the publishing business, allows this generation to continue much longer and at a much higher rate than maybe it previously [did].
Later, Moore makes poignant points about the sales numbers that the public see don’t count digital sales. He also mentioned that games are now a service, and companies have opportunities to make money on the back-end and not just the initial service. It’s why DLC is more prevalent, and microtransactions are invading the $60 games that players are buying for $5 during a PSN flash sale.
There’s no denying that the video game market is currently changing, and taking a long-term view is likely the best strategy here. Plus, as Moore states, we don’t have the full picture since so many gamers have gone digital-only. Basing business decisions on purely physical sales would be silly, just as ignoring them outright would be. There’s a balance here, and both sides can thrive.