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

 
Forgot your password?
Username :
Password :

Poll

How do you usually divide up your Humble Bundle payments?:

Shout box

You're not permitted to post shouts.
MaskedPixelantehttp://i5.minus.com/iN5o9iu1ON2NG.jpg "It cursed my gear? WHY WOULD IT DO THAT?! THIS GAME IS BUGGED!"04/24/2014 - 9:51pm
Matthew Wilsonthe lose of nn would not be good for us, but it will not be good for verizion/comcast/att in the long run ether.04/24/2014 - 2:16pm
Matthew Wilsonsadly yes. it would take another sopa day to achieve it.04/24/2014 - 2:13pm
NeenekoI am also confused. Are you saying NN would only become law if Google/Netflix pushed the issue (against their own interests)?04/24/2014 - 2:10pm
E. Zachary KnightMatthew, you are saying a lot of things but I am still unclear on your point. Are you saying that the loss of Net Neutrality will be good in the long run?04/24/2014 - 2:06pm
Matthew WilsonOfcourse it does I never said it did not.though over time the death of NN will make backbone providers like Google, level3 and others stronger becouse most isps including the big ones can not provid internet without them. they can peer with smaller isps04/24/2014 - 1:54pm
E. Zachary KnightMatthew, and that still plays in Google's favor over their smaller rivals who don't have the muscle to stand up to ISPs.04/24/2014 - 1:45pm
Matthew Wilsongoogle wont pay becouse they control a large part of the backbone that all isps depend on. if verizon blocks their data, google does the same. the effect is Verizon loses access to 40% of the internet, and can not serve some areas at all.04/24/2014 - 1:14pm
Neenekolack of NN is in google and netflix interest. It is another tool for squeezing out smaller companies since they can afford to 'play'04/24/2014 - 12:57pm
Matthew WilsonI have said it before net nutrality will not be made in to law until Google or Netflix is blocked, or they do what they did for sopa and pull their sites down in protest.04/23/2014 - 8:02pm
Andrew EisenGee, I guess putting a former cable industry lobbyist as the Chairman of the FCC wasn't that great of an idea. http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rules.html?_r=204/23/2014 - 7:26pm
Andrew EisenIanC - I assume what he's getting at is the fact that once PS3/360 development ceases, there will be no more "For Everything But Wii U" games.04/23/2014 - 5:49pm
Andrew EisenMatthew - Yes, obviously developers will eventually move on from the PS3 and 360 but the phrase will continue to mean exactly what it means.04/23/2014 - 5:45pm
IanCAnd how does that equal his annoying phrase being meaningless?04/23/2014 - 5:09pm
Matthew Wilson@Andrew Eisen the phrase everything but wiiu will be meaningless afer this year becouse devs will drop 360/ps3 support.04/23/2014 - 4:43pm
Andrew EisenFor Everything But... 360? Huh, not many games can claim that title. Only three others that I know of.04/23/2014 - 3:45pm
MaskedPixelantehttp://www.joystiq.com/2014/04/23/another-world-rated-for-current-consoles-handhelds-in-germany/ Another World fulfills legal obligations of being on every gaming system under the sun.04/23/2014 - 12:34pm
Matthew Wilsonhttp://arstechnica.com/gaming/2014/04/steam-gauge-do-strong-reviews-lead-to-stronger-sales-on-steam/?comments=1 Here is another data driven article using sales data from steam to figure out if reviews effect sales. It is stats heavy like the last one.04/23/2014 - 11:33am
Andrew EisenI love RPGs but I didn't much care for Tales of Symphonia. I didn't bother with its sequel.04/23/2014 - 11:21am
InfophileIt had great RPGs because MS wanted to use them to break into Japan. (Which had the side-effect of screwing NA PS3 owners out of Tales of Vesperia. No, I'm not bitter, why do you ask?)04/23/2014 - 10:52am
 

Be Heard - Contact Your Politician