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Digital game sales are becoming big business for EA

by Joey Davidson | May 10, 2017May 10, 2017 2:00 pm PDT

Net income for EA was down year-on-year, while revenue was up over the same period. That’s sort of interesting, sure, but the really interesting tidbit is in the digital sales results for the year and how they compare to the traditional stuff.

Friends, traditional, physical media is likely dying out in the world of gaming, whether you want that to happen or not.

EA generated $3 billion in revenue on only digital sales over this past fiscal year, and that’s a 20 percent increase over last year. Digital game sales now account for 61 percent of EA’s annual revenue. You think they’re interested in it now? Wait until next year.

Digital is the future, folks, here we go

Microtransactions, Season Passes (which seem to be going by the wayside, slowly) and games-as-a-service are the way of the future. As game companies increase user retention and decrease used sales by dropping constant perceived value on players, they’re doing so through digital channels. All those loot boxes and DLC packs are adding up, and digital purchases are becoming the majority revenue stream for big publishers like EA.

Do you contribute to that growing number? Are you happy to be living in a digital world of gaming? I sure hope so, because I doubt it’s set to change to physical media anytime soon after performances like this one.

Gamesutra

Joey Davidson

Joey Davidson leads the gaming department here on TechnoBuffalo. He's been covering games online for more than 10 years, and he's a lover of all...

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