About Dan Gendro

Author: Dan Gendro

Mobile games with “freemium” model are the future, according to EA

Dan Gendro | April 5, 2013

EA continues to become more enthusiastic toward mobile games

Electronic Arts is one of the most powerful companies in the game industry, so when it starts putting more focus on mobile games, it is not doing so arbitrarily. Mobile games are quickly becoming the most popular product that the game industry has to offer. These games are enjoyed by millions of mobile consumers around the world, many of whom are more than happy to put their own money into these games to unlock new features are purchase virtual currencies. Electronic Arts has been growing more vocal on the issue of mobile games as consumers begin to become more critical of the company’s entry into this sector.

Freemium model enjoyed by most consumers

According to EA, the vast majority of people that play mobile games prefer the free-to-play, often called “freemium,” business model. Through this model, consumers can obtain and play mobile games free of charge. This allows games to circulate among a larger audience, potentially acquiring more fans and exposing more people to in-game advertisements, which generate revenue for both the game’s developer and the game’s publisher. Many of the features of these games could be locked, however, with players having to pay to access such features. This particular practice has been criticized by many gamers as greedy and dubious.

In-app purchases are widely supported

EA notes that consumers are enthusiastic about in-app purchases because the can choose how they want to experience the game they are playing. Some purchases involve power-ups that can significantly decrease the time investment requires to complete mobile games. These allow players to enjoy games at a pace that is more accommodating to their tastes. Moreover, in-app purchases are the ideal way for mobile games to generate revenue for their developers. EA suggests that traditional games that require an upfront purchase in order to play typically generate less revenue and are considered, on the business side, outdated.

Freemium is the most popular model among independent developers

While a large portion of gamers enjoy mobile games, many suggest that EA’s insistence on the freemium model is a prime example of corporate greed ruining the game industry. Developers, however, are the primary parties responsible for this business model. Independent developers, those that release games without the backing of publishers like EA, rely heavily on this model in order to remain in business, as the freemium model is the best way for these developers to generate profits from their mobile games.

EA claims mobile games will not kill consoles

Dan Gendro | April 4, 2013

Mobile games are unlikely to dethrone consoles in the game industry

Mobile games are quickly becoming a formidable force in the game industry. Millions of consumers around the world play mobile games for the sake of entertainment and because these games are simply more convenient than those that are played on consoles. For decades, console games have dominated the game industry, but the advent of mobile technology has taken consumers out of their homes and given them a new way to play games while on the go. Indeed, many within the game industry believes that mobile games could eventually dethrone consoles as the staple of the industry.

Peter Moore champions console gaming

The downfall of console gaming is not something the industry has to worry about, according to Electronic Arts COO Peter Moore. While mobile games have certainly cut into the sales of consoles and other gaming hardware, Moore suggests that console gaming will continue to be the most prominent form of gaming in the world. Moore claims that the suggestion of the demise of console gaming is “very premature,” especially as a new generation of consoles is about to dawn.

Next generation consoles will find success with consumers

Moore notes that there are thousands of people at Electronic Arts alone that are focused on developing games for current generation consoles. Many of these developers will continue this focus well into the future, but many more will come to focus on new consoles like the Playstation 4 and the rumored Xbox 720. While Moore holds out hope for consoles, the executive does note that the sale of physical games is likely to become a thing of the past, especially as digital distribution becomes more capable of meeting the needs of consumers.

Mobile games may be more formidable than Moore anticipates

Though Moore may be a champion for console games, Electronic Arts is beginning to focus more heavily on mobile games. The publisher has recently been backing developers that focus solely on the mobile space. Electronic Arts has even launched its own publishing division devoted entirely to mobile games. Moore, who is likely to become the next CEO of Electronic Arts, claims that console games provide a more immersive experience for consumers. Mobile games, however, may actually provide more value to consumers.