In a recent financial call, EA CEO Andrew Wilson made it clear that the company will not be following the trend set by Microsoft and Nintendo of increasing game prices. Amidst a backdrop where competitors are moving to $80 for new releases, Wilson emphasized EA's commitment to delivering "incredible quality and exponential value for our playerbase." This stance comes as their successful co-op adventure game, Split Fiction, has now sold an impressive 4 million copies.
Wilson highlighted the evolution of EA's business model over the past decade, noting that while physical sales still play a role, they are now a minor part compared to the diverse range of pricing models from free-to-play to deluxe editions. "At the end of the day, whether we're doing something that costs a dollar, or we're doing something that costs $10, or we're doing something that costs $100, our objective is always to deliver incredible quality and exponential value for our playerbase," he stated. This focus on marrying quality with value has proven to be a successful strategy for EA, allowing the company to maintain strong, resilient growth.
CFO Stuart Canfield reinforced this position, stating that there are "no changes in our current [pricing] strategy at this point." This news will be a relief to many gamers, especially following Microsoft's announcement last week of price increases for Xbox consoles, accessories, and upcoming first-party games, which are set to cost $79.99 during the holiday season.
The broader AAA gaming industry has seen a shift in pricing, with standard game costs jumping from $60 to $70 over the last five years. Nintendo has gone a step further, setting prices at $80 for upcoming Switch 2 exclusive titles like Mario Kart World and other Switch 2 Edition games. The Switch 2 itself is slated to launch at $450, a decision that has sparked debate among fans, though analysts suggest it's an inevitable response to current economic conditions.
Given EA's current stance, fans can expect the next titles in popular franchises such as EA Sports FC, Madden, and Battlefield to maintain the $70 standard edition pricing. This decision comes at a time when EA has also made headlines for workforce reductions, including cutting around 100 jobs at Apex Legends developer Respawn Entertainment and making broader cuts affecting around 300 individuals across the organization.
