EA CEO Says Time for Game Console Cycle to End

EA CEO John Riccitiello said in a quarterly earnings call yesterday that the game console cycle, that is, the 4-5 year long space between console development and launches, is over. Between this and recent statements that physical storefronts will be disappearing in the near future, it sounds like EA has it all figured out.

During the conference call, which was spearheaded by reports of a good quarter thanks to Portal 2 and pre-orders for the coming releases of Battlefield 3 and Star Wars: The Old Republic, Riccitiello mentioned that the video game industry has been "radically changed."

"Gone forever is the 4- to 5-year console cadence that gave developers ample time to invest and retool for the next big wave," Riccitiello said. "Consider that just 18 months ago, there was no iPad, Google was just experimenting with Android and most big games were limited to a single revenue opportunity at launch. Consider that each of the major consoles now has a controller that encourages users to get off the couch and get into the action."

Above: EA "digital distribution rocks" Origin

Of course, Riccitiello followed these comments by playing up digital distribution, mentioning that the top paid apps on smartphones and tablets are all games, and that it's "the fastest growing revenue [stream]" for consoles, PCs and smart devices.

Keeping that in mind, Riccitiello said EA's three-pronged approach to digital distribution involves developing intellectual property, establishing a platform for digital distribution, and growing a talent pool capable of working "across the full spectrum of EA's many channels and business models." He also mentioned that EA has "a dozen very substantial IPs" that it wants to transform into year-round businesses with major packaged goods launches (so much for ditching the brick-and-mortar stores), social launches, mobile launches, downloadable content and micro-transactions.

Basically, he means "finding every possible space to squeeze a Madden game into."
Via:  PC World
dammonritter 3 years ago

Hmm... Onlive, steam... I doubt the next console will be a standalone device. More likely a PCoIP device which may help fend off the looming ISP caps or they will just come out with a gamer package and charge us more, yeah that's probably what will happen.

omegadraco 3 years ago

Yep EA certainly thinks they have it figured out. But ISP caps are here and they are here to stay at this point so poo on them for digital distribution only.

animatortom 3 years ago

ALL it will take is Microsoft to turn the X-Box into a HTPC! Then you can play Xbox style games as well as PC games along with watching HD movies all from one box that is also a PC!

They should call it the F-Box! The All in one,....Frag-Box :P

rapid1 3 years ago

Yup; and it will all run on windows 8 the cloud OS by M$, which will also supposedly own the smart phone market by 2015, and there 8 OS will also run on any major processor type built it looks like to. Hmm if they jump on board with Clearwire, Sprint, and Light Squared they could own the world. I think they should buy Comcast, and Verizon to, then we will all only need one provider for all OS, Office, Gaming, cellular, cable as well, when there done they can buy Walmart because they would own pretty much 50% of everything else by then anyway.

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