Tech Uncategorized

Electronic Arts testing new pricing model for XBox One gamers

The company behind the world's biggest sports video game titles is betting consumer loyalty and in-game purchasing will win the day.

Photo Credit: Stephen Brashear, Invision for Microsoft/AP
Photo Credit: Stephen Brashear, Invision for Microsoft/AP

Electronic Arts (EA), makers of wildly popular sports games like FIFA and Madden, is introducing a new subscription service for Xbox One that will allow members to play parts of EA’s catalog for $4.99 a month.

The service, called EA Access, allows Xbox One gamers to play FIFA 14, Madden NFL 25, Peggle 2 and Battlefield 4 with more titles to be added in the future.

Subscriptions are priced at $4.99 monthly or $29.99 annually. By comparison, those four titles would cost approximately $100 purchased individually.

EA has entered into a number of sports licensing deals to carry FIFA, Madden, NHL Live, NBA Live, PGA Tour and UFC titles that, along with other genres, has given the company the highest software-retention rate in the industry.

Predictably absent from the offering is EA NCAA Football, a discontinued title that has been at the center of courtroom discussions surrounding the NCAA and college athletes.

Photo Credit: Electronic Arts
Photo Credit: Electronic Arts

PRICE SHIFTING

Rather than make its money on selling traditional single-game titles, EA is betting that consumer loyalty — through continued subscriptions and in-game purchases — will win the day.

In addition to playing game titles, EA Access members will receive a 10 percent discount on EA digital download purchases, including full games, downloadable content and in-game currency.

EA’s efforts are just the latest example of a company experimenting with new models that shift prices to different phases of the revenue cycle when delivering a product or service.

Whether customers are being charged at the front or the back end, its money just the same for EA.

0 comments on “Electronic Arts testing new pricing model for XBox One gamers

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: