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June 23, 2011

EA's Peter Moore Comments on EA Sports' software as a service...

The following responses come from EA's Peter Moore...

On EA Sports software as a service...

“Software as a service, SAAS as they call it, is the future. Software that’s not on a floppy disk or a disc or some form of cartridge, that is the key. Once you have software as a service, games as a service becomes important as well. Having EA Sports as a service rather than individual, discreet purchases becomes important to us. How do I provide all of my portfolio and franchises to you as a service as software is usually delivered rather than hoping you go to a store and buy my game instead of the game next to it on the shelf? That is the NetFlix model. That is any online subscription model.

“Ultimately our industry has got to move towards being able to build services, and we have a unique situation at EA Sports where we’re really the only true ‘brand’ in video games. There are publishers like ourselves, Activision, and Ubisoft, you can argue they’re brands, but I’m not sure if you buy an EA game, for example, you buy a game that happens to be published by EA. Our research shows people will be an EA Sports game. EA Sports is a brand they trust, and so what we’ve got to be able to do is how do we tie that all together? That’s what I was talking about, this concept of a service, of subscription models, and of being able to go direct to consumer.

“If you’re our average guy, maybe you buy two or three games a year. That’s $180. Can I provide you with a service that’s less expensive, that provides you with more content? Those are the models that all software companies look at and we’re no different.”

On Wii U online...

“We’re a long way away from [Wii U] going live, but their intentions are good. They recognize they fell behind a little bit with the Wii at the same time Xbox 360 and PlayStation 3 are accelerating by the tens of millions of users. You weren’t getting that level of interaction and engagement from Wii consumers.

“Nintendo has recognized the future is connected. The future is online. The future is about building powerful communities. They know they have to do that, and certainly with the conversations I’ve been in with them I’m very optimistic. We all need to help them, which we’re all willing to do. When I say “we” I mean developers and publishers bringing their best practices.

“I think it would be great to have three, powerful online game networks going at it with each other.”

On Wii U bringing in expanded audience gamers...

“You’d like to think they’ll continue to bring in a broader audience. What the Wii did was create a whole new class of gamers. Whether it was through interactive fitness with the Wii balance board or Wii Fit, it created a bunch of people that have never seen themselves as a console owner before. With the intuitiveness of the device, people from 9 to 90 started to play video games. That helped democratized gaming on top of the core.

“You’d like to think that whatever they do more people play games because of them rather than the same number of people that play games and have to make hard choices between a Wii U, PlayStation 3 or 4, and Xbox 360 or ‘Xbox 720.’

“I would rather that we continue to grow our business horizontally than deepen our business vertically. I’ll take both, though.”

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