Wednesday, February 2, 2011

Electronic Arts goes Bankrupt



Electronic Art’s recent Project $10 has the company once again attacking it’s consumer base for it’s own financial gain; you would have thought they would have learned their lesson from the DRM Spore debacle. Make no mistake, whether there is a one and done code (for some DLC) or limited installs of a new game, this all centers around digital rights management; more and more publishers feel they can infringe on the consumer’s rights for their own personal gain. In addition to EA’s misguided efforts to reclaim lost revenue from used game sales, recently Ubisoft announced that they are using an online verification system for PC games and Sony is requiring an online code to unlock portions of certain games (i.e. online play for SOCOM). Both policies are infringing on consumer’s first sales doctrine rights; how long will it take for a smart lawyer to realize this and initiate a clash action lawsuit. I understand where publishers are coming from, but I think there are better ways to handle DRM that do not exploit consumers and may even generate some good will (enhance and future sales).
Free DLC- If used game sales are the issue, prevent the discs from being traded in (stop the problem at the source), by giving consumers free DLC. Free DLC is a no brainer, if consumers knew that they could get added use out of the game they would keep them longer and there would be nothing to trade. Publishers will argue that the DLC costs them money, but this could easily be recouped if they combine the DLC and release it on a compilation or Game of the Year Disc/version.
Limit Game Print Runs- Do not over print games; this is a huge factor that generally leads to devaluation of game values across the board. Many Japanese developers (Atlus being the prime example) will limit initial print runs and pull games quickly once sales slow; this creates a sense of urgency with consumers, “if I do not buy it now I may not be able to get it later”. The same technique is used with sales promotions (that only exist for a short time); buy now or lose is a powerful motivator.
I think EA is heading down a dangerous path that at the best will alienate their fan base and at worst may bankrupt the company. There are clearly better ways to handle DRM, it just takes a little thought and some motivation and we can make a healthier video game industry where everyone benefits.

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