Earlier today EA announced that CFO Blake Jorgensen and CTO of EA, Rajat Taneja would be holding a conference discussing the PlayStation 4 at Morgan Stanley’s Technology, Media and Telecom conference. During the conference, Tanejz went over several aspects of EA’s strategy, thought process and approach to Sony’s new hardware. The highlights of the event are as follows:
- They have never been more prepaired or ready for a new console launch
- Giant leap for the industry, every step and function. “Between 8 & 10 times the power of current generation.”
- Not limited to current generation “1080p, 60 fps, camera IQ”
- All of internal software will work flawlessly.
- What used to take months will now “take days” to do.
- Seeing new ways to approach current IP’s and new IP’s.
- The ability to have cross platform play, will open up new consumer base.
- EA has slimmed down their lineup from 85 games to 15 core titles
- Allows stream lining the backbone of game creation
- Sony and Microsoft in-line for their transition will reduce cost of production
- 5% to 10% increase in cost of production on current games.
- No pricing on retail games set, but you may see a trend of “$69.99” at start and dropping down to $59.99 similar to the beginning of the current generation.
- Saving time and money in comparison to the roadmap they set up last year.
- Data collected on gamers through created technology and algorithms allow them to engage the players.
- Gross margin as gone from 55% in 2010 to 55-65% range currently.
- Due to the transition into the digital world from boxed gaming.
- Discussed the progression and advantage of the PS4 in regards to downloading games
- Many more opportunities in “always on” connected gaming
- The focus is always focused on the “consumer experience”
- Discussion of margins in regards to digital expansion packs and the margins it drives
- Doing so builds an actual community, and overall over time, more profitability
- Building into all games micro-transaction: “Consumers are enjoying and embracing that way of the business”
- Over $25 Million revenue in micro-transactions alone last quarter.
- Much has been learned on infrastructure in regards to the failed iOs launch of the Simpsons.
- Absence at PS4 reveal is not indicative to their status on the console.
- Between now and E3 you will see a lot of stuff from EA
- Thrilled with the PS4 specs – the new Battlefield is stunning
That wraps up the conference, let me know what you think of this by subscribing to me here or following me on twitter @NicholasGigante.