EA will focus more on the free-to-play model

Electronic Arts CEO John Riccitiello believes the company can regain its leadership position in the game industry by focusing more on the free-to-play model and online distribution. Retail products do remain the core activity.

This reported Riccitiello according to Gamasutra at the Goldman Sachs Technology and Internet Conference. “As it stands, this is a better model for us than pay-to-play.” To support his point, Riccitiello gave FIFA Ultimate Team as an example; revenue from that quadrupled from $10 million to $40 million as the game’s price dropped from $10 to zero. ‘Play now, pay later’ is the success factor of this model, according to Riccitiello.

“We got it wrong in the transition to the PS3 era. Our intellectual property weakened, our costs went up and we had no real response to the rise of online distribution.” To reverse this trend, EA has shifted its focus to release fewer games and keep a closer eye on the online market. There is a great emphasis on the free-to-play model.

Riccitiello indicates that EA will not ignore retail products for HD systems; this remains the core activity of the company. However, exploiting IPs like Mass Effect and The Sims through social networks and platforms like the iPhone is a fruitful venture. He still sees potential for motion-sensitive controls, despite EA Sports Active’s lackluster sales.

EA’s CEO also addressed Star Wars: The Old Republic. “I don’t think we’ll knock World of Warcraft off the throne, but we’re definitely targeting a big chunk of the market.” Riccitiello believes that The Old Republic’s new technology makes the game distinctive. “Actually, WoW is a silent film and our mmog is the first talkie. The Old Republic is fully voiced.” However, investors are less confident in EA’s mmog. They think that Electronic Arts does not know how to market the game well.