Ea have revealed that a huge 20% of its revenues now comes from DLC and full downloadable games.
Though the majority of their revenues remain in physical formats, growing app sales and PC, Xbox and PS3 download sales are bolstering their profits. According to Electronic Arts CFO Eric Brown, speaking at the UBS Media and Communications Conference in New York these sales now account for some $750 million in revenue.
“We’ve at least in part kind of cracked the code of how to extend the revenue derived from a physical disc to the digital world,” Brown said.
“We have the benefit of fairly well known brands — Madden, Need For Speed, FIFA — when these appear on a list of applications, the unaided awareness is extraordinarily high… and so we have a persistent advantage versus newcomers to the game that are trying to establish a new property.”
While it may not completely ring the death knell for physical sales, there’s definately a growing shift towards downloads in the gaming market, just as there has been in music sales. With faster downlaod speeds and an increasing confidence in digital ownership, expect to see figures like these rise.
By Gerald Lynch | December 8th, 2010