EA Outlines New Premium Download Content Strategy [Update]
New initiative offers paid "demos" prior to full game launches, say analyst.
by Jim Reilly
March 22, 2010 - Electronic Arts plans to offer extended downloadable demos for a price to players prior to the release of the full, packaged game, according to analyst Michael Pachter's latest investor report.
EA's Chief Operating Officer Nick Earl revealed the company's latest premium downloadable content (PDLC) strategy during a recent investor visit at its Redwood City studio, which includes charging a small price for an early look at upcoming titles.
"The PDLC would be sold for $10 or $15 through Xbox Live and PlayStation Network, and would essentially be a very long game demo, along the lines of 2009's Battlefield 1943," Pachter said. "A full-blown packaged game would follow shortly after the release of the PDLC, bearing a full retail price. Mr. Earl believes that the release of the PDLC first limits the risk of completing and marketing the full packaged version, and serves as a low-cost marketing tool."
In a follow-up conversation with IGN, Pachter says these paid "demos" will act as a sort of beta test for the company, saying feedback received will shape the final retail product.
"Think about Battlefield 1943 as the prototype, so a full (but short) game experience for a reasonable price," he said. "At the same time, an expanded version of the game will be under development for release as a packaged product."
"However, the idea is that if the PDLC gets favorable reviews, it will build word of mouth for the boxed product. If the PDLC has issues, they can tweak the packaged product to address those issues, improving the final product before release," he added.
Pachter said he wasn't sure if EA plans to include the PDLC content with the packaged game, adding that the content could be a "prequel" to the full game so it can continue to be sold separately. The strategy is expected to launch during the company's fiscal 2011 year, which begins on April 1, 2010.
Update: Electronic Arts has responded to Pachter's report. The company told IGN it has not officially announced any pricing details for any projects, and that traditional game demos will remain free.
"EA is working on a number of projects for delivering premium content to consumers before, during, and after the launch of a packaged-goods version of the game," said Jeff Brown, VP of Corporate Communications. "EA SPORTS, EA Games and EA Play are each experimenting with download strategies that deliver fresh game content in formats players want to experience."
"To date, there is no set pricing strategy for the entire EA portfolio. And many of the proposals include free-to-play content on models similar to Madden Ultimate Team, Battlefield Heroes and Battlefield 1943," he added.
"None of the proposals call for charging consumers for traditionally free game demos."
As reported by IGN.
