It seems that the cost of gaming is set to rise significantly, with Mario Kart World priced at $80 as a launch game for the Switch 2 and Microsoft confirming similar pricing for its in-house titles. This follows the upward trend in base video game prices from $60 to $70 that began in 2020. However, Electronic Arts (EA) has no immediate plans to increase their prices along with other publishers.
During a Q&A segment of their Q4 and FY2025 earnings call, EA was questioned about potentially adapting a strategy similar to other companies by adjusting the pricing for its major intellectual properties in the future. In response, EA’s CEO, Andrew Wilson, stated that “our business model has changed significantly over the past decade.
10 years ago, our focus was primarily on selling physical discs in stores. However, that aspect of our business has shrunk significantly. Today, our pricing ranges from free-to-play options to deluxe editions and more. Regardless of whether we’re offering a product for a dollar or a hundred dollars, our ultimate goal remains the same: delivering exceptional quality and immense value to our players. We’ve learned over time that when we can effectively blend quality and value, our business thrives, proving to be robust and continually expanding.
Speaking about gaming strategy, Stuart Canfield from EA stated that they have not introduced any modifications to their present approach at the moment. It’s important to note that a significant portion of EA’s income comes from microtransactions. In the 2025 fiscal year, microtransactions generated an impressive $5.34 billion, while video game sales accounted for $2 billion in revenue.
These remarks follow the release of Electronic Arts’ (EA) financial report for the fourth quarter ending on March 31, 2025. Wilson stated that the company “surpassed expectations substantially,” with major contributions coming from games such as EA Sports FC in Q4, The Sims, and Split Fiction. In this quarter, live-service revenue increased by approximately 1% to reach $1.42 billion. Notably, The Sims saw the highest growth in the series’ history, while sales of Split Fiction are almost double what EA initially anticipated from the game developed by Hazelight Studios.
Concurrently, EA has faced some turbulence, with numerous employees being let go, and two burgeoning projects at Respawn Interactive being shelved at an early stage.
While things have been going well for EA overall, there have been some challenges too, such as layoffs of many workers and the cancellation of two new projects at Respawn Interactive that were still in their initial stages.
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2025-05-07 15:23