EA Makes $10 - 15 Million Off Online Pass

September 9, 2011 -

According to a Gamasutra report cover comments from Electronic Arts CFO Eric Brown, EA's "Online Pass" has made the company $10-$15 million since. Interestingly enough, the company categorizes that figure as "not a lot of money." I suppose to a company the size of EA that amount of money is chicken scratch to them.

"The revenues we derive from that haven't been dramatic. I'd say they're in the $10-$15 million range since we initiated the program," he said.

He went on to say that while the amount of money gained from the program has not been dramatic, all this "found revenue" has come from consumers who were consuming "bandwidth for free."

EA launched its Online Pass earlier this year as a way to earn some money off of used game buyers who wanted to play their games online. The Online Pass typically cost used game buyers an additional $10 - which, oddly enough, puts the price of a used game + Online Pass near the cost of a new game, typically.

Source: Gamasutra


Comments

Re: EA Makes $10 - 15 Million Off Online Pass

"Found revenue" makes it sound like it was missing. It wasn't.

Re: EA Makes $10 - 15 Million Off Online Pass

Bandwidth consumed via communication with your end user is just another cost of business, like say, electricity. In the long run, trying to recoup such costs from your customers is bad for your business and infrastructure.

If you are really worried about bandwidth, get a connection to a tier 1 ISP (a penny a gigabyte) or become an ISP to yourself.

Re: EA Makes $10 - 15 Million Off Online Pass

Forcing me to use there privacy invasive software will preclude me from buying any of their games in the future.

Re: EA Makes $10 - 15 Million Off Online Pass

...all this "found revenue" has come from consumers who were consuming "bandwidth for free."

Uh, you do realize the original owner of the game is no longer consuming your bandwidth, right?

 

Andrew Eisen

Re: EA Makes $10 - 15 Million Off Online Pass

Any sensible business model would account for the average life time of a game for a single player. In other words, costs allocated from the sale of the title would generally account for the fact that the purchaser of the game will see their gameplay wane. When you resell a game this behaviour changes such that there is likely an increase in the amount of network service usage per disc sold and I would expect this increases with every second hand sale of the game.

Game publishers/developers have to absorb a huge amount of risk for any game they publish, EA is no exception here. Personally I don't have an issue with them charging for online access so long as the fee is reasonable ($10 is reasonable), the fact that you are paying close to new disc rates after the purchase isn't the fault of EA, it is the price gouging that occurs by the reseller. Your beef should be with GameStop (or where ever you bought the game), clearly the second hand value of the game is not inline with your expectations.

Re: EA Makes $10 - 15 Million Off Online Pass

Interesting way of looking at it but the sensible business model would then account for the used market and understand that, thanks to second hand sales, the total number of users might not wane as quickly.

And to be clear, I have exactly zero problems with the "online pass" idea.  Thanks to GameStop's absurd used pricing, I think it's an excellent way to make buying new a more attractive prospect (unless the used buyer didn't care about online in the first place).  I would expect GameStop (and I don't shop there so maybe they do this) to knock an additional $10 off the used price of games that do the "online pass" thing.

 

Andrew Eisen

 
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Andrew EisenConster - Don't know. Got a link to whatever you're referring to?08/30/2014 - 7:04pm
ConsterWait, what's this about Leland Yee eliminating witnesses?08/30/2014 - 5:50pm
IanCBroke my EA boycott to pick up Plants vs Zombies Garden Warfare. Loving it. Still hate EA though. But i like Popcap. Gah.08/30/2014 - 6:01am
MaskedPixelantehttp://m.tickld.com/x/something-you-never-realized-about-guardians-of-the-galaxy Right in the feels.08/29/2014 - 6:56pm
AvalongodAgain I think we're conflating the issue of whether Sarkeesian's claims are beyond critique (no they're not) and whether its ever appropriate to use sexist language, let alone physical threats on a woman to intimidate her (no it isn't)08/29/2014 - 5:04pm
prh99Trolling her or trying to assail her integrity just draws more attention (Streisand effect?). Which is really not what the trolls want, so the only way to win (if there is a win to be had) is not to play/troll.08/29/2014 - 5:02pm
prh99Who cares, just don't watch the damn videos if you don't like her. Personally, I don't care as far as she is concerned as long there are interesting games to be played.08/29/2014 - 4:34pm
Andrew EisenZip - And yet, you can't cite a single, solitary example. (And no one said you hated anyone. Along those lines, no one claimed Sarkeesian was perfect either.)08/29/2014 - 3:51pm
Andrew EisenSaint's Row: Gat Out of Hell was just announced for PC, PS3, PS4, Xbox 360 and Xbox One making it the 150th game For Everything But Wii U! Congratulations Deep Silver!08/29/2014 - 3:49pm
ZippyDSMleeI do not hate them jsut think its mostly hyperlobe.08/29/2014 - 3:40pm
Andrew EisenSleaker - I'd say that's likely. From my experience, most who have a problem with Sarkeesian's videos either want to hate them in the first place (for whatever reason) or honestly misunderstand what they're about and what they're saying.08/29/2014 - 3:16pm
james_fudgeWe appreciate your support :)08/29/2014 - 2:55pm
TechnogeekIt gives me hope that maybe, just maybe, the gaming community is not statistically indistinguishable from consisting entirely of people that your average Xbox Live caricature would look at and go "maybe you should tone it down a little bit".08/29/2014 - 2:49pm
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E. Zachary KnightZippy, So you can't find even one?08/29/2014 - 1:04pm
ZippyDSMleeAndrew Eisen:Right because shes prefect and never exaggerates... *rolls eyes*08/29/2014 - 12:53pm
SleakerAnd honestly, nearly all of the games she references, or images she depicts I've always cringed at and wondered why they were included in games to begin with, from pinups through explicit sexual depictions or direct abuse. I think it's cheap storytelling.08/29/2014 - 12:35pm
Sleaker@AE - aren't most people fundamentally misunderstanding her at this point? haha.. On a related note I think a lot of the backlash is coming from males that think she is telling them their 'Generic Male Fantasy' is bad and wrong.08/29/2014 - 12:33pm
Andrew EisenAnd no, I don't think the female community would be upset over the performance of a case study in and of itself. Possibly the mostivations behind such a study, the methodology or conclusions but not the mere idea of a case study.08/29/2014 - 12:29pm
 

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