Susan Arendt
Culture

EA Chief: Games Industry Can't Afford to Be Arrogant

The games industry needs to reevaluate its business model, says EA’s CEO John Riccitiello, or else it will suffer the same fate as the "arrogant" ABC, NBC, and CBS, who failed to view cable television as a threat. The networks were dominant, he says, and so failed to recognize the change that ultimately cost them […]

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The games industry needs to reevaluate its business model, says EA's CEO John Riccitiello, or else it will suffer the same fate as the "arrogant" ABC, NBC, and CBS, who failed to view cable television as a threat.

The networks were dominant, he says, and so failed to recognize the change that ultimately cost them a huge share of the market. Similarly, game companies must realize that consumers won't pay $60 for games indefinitely:

In the next five years, we're all going to have to deal with this. In China, they're giving games away for free. People who benefit from the current model will need to embrace a new revenue model, or wait for others to disrupt.

Agree, disagree? Discuss.

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