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EA: Origin Will Not Get 75% Discount Like Steam
Steam digital distribution platform is famous for its discounts of 75% or more – and many players love it. But EA, developer of rival platform Origin, thinks this is the wrong approach. Origin head David DeMartini said in a recent interview that such occasional significant discounts on games devalue intellectual property and promised not to repeat the practice.
“We won’t do that,” he said. – Obviously, they believe that it is right to make such significant discounts over time. I just think it lowers the cost of intellectual property. I know both sides of this practice, and I understand it. If your goal is to sell as many copies as possible, this is the right way to sell a whole bunch of everything at a low price. “.
Game developers work tirelessly to make this intellectual property, and we are not trying to be Target. We are trying to be Nordstrom (department store chain with quality products and relatively high prices). When I say this, I mean a quality product at a reasonable price, we are trying to offer customers a fair value, and from time to time some things will be sold at a discount, just do not expect the 75 percent discounts that are typical for sales, ”he added.
Origin, launched a year ago, currently ranks second in the digital distribution services market with 11 million users. First place goes to Steam with 40 million active users. In its first year, Origin brought in $ 150 million in revenues from the launch of projects such as Mass Effect 3, Battlefield 3 and Star Wars: The Old Republic.
Incidentally, Steam is sometimes accused of heavy discounts harming video game developers, as buyers postpone the purchase of new projects for several months after launch. Mr. DeMartini agrees with this point of view: “Steam teaches the buyer to think something like this: „You shouldn’t buy this game in the first month after release, because if I wait 4 or 5 months, I can buy the project during the weekend discounts for 75% less “. This has its own logic, and I’m not going to say that it does not work for Valve. She undoubtedly works for Valve; I don’t know if it works just as well for publisher partners who, for the most part, do these discounts. “.
Valve CEO Gabe Newell has defended this practice in the past, pointing out that there is no negative impact on other sales channels. “In fact, Gabe usually says that this policy improves sales in other channels, because if the game is good, discounts act as a boost effect. Without going into too much detail, I can say that one of the ways to sell an aging product is such significant discounts. There are other ways to combat product obsolescence over time, which I cannot yet talk about – you need to provide the customer with value and constantly involve him in the service, ”said David DeMartini.
He also hinted that there will be alternatives to Steam discounts on Origin: “We don’t believe in stimulating demand and returning interest in a product with 75 percent discounts, but we have something else that we believe in and are going to use it to work.”.
- Valve is not making a sequel to Left 4 Dead;
- The Linux version of the Steam client may come out this year;
- EA Confirms Battlefield Premium Existence;
- Remote download for Steam is out of beta;
- EA is preparing its response to Call of Duty Elite.
- gamesindustry.biz, eurogamer.net