In a major departure from its traditional business model, E.A. plans to announce Monday that it is developing a new installment in its hit Battlefield series that will be distributed on the Internet as a free download. Rather than being sold at retail, the game is meant to generate revenue through advertising and small in-game transactions that allow players to spend a few dollars on new outfits, weapons and other virtual gear.Instead of charging for the game up front, EA makes their money on advertising and in-game products. This definitely gets rid of the piracy issue. I will be interested to see how profitability is impacted.
At a conference in Munich, the company intends to announce that the new game, Battlefield Heroes, will be released for PC this summer. More broadly, E.A. hopes the game can help point the way for Western game publishers looking to diversify beyond appealing to hard-core players with games that can cost $60 or more.
E.A.’s most recent experiment with free online games began two years ago in South Korea, the world’s most fervent gaming culture. In 2006, the company introduced a free version of its FIFA soccer game there, and Gerhard Florin, E.A.’s executive vice president for publishing in the Americas and Europe, said it has signed up more than five million Korean users and generates more than $1 million in monthly in-game sales.
Players can pay not only for decorative items like shoes and jerseys but also for boosts in their players’ speed, agility and accuracy. Mr. Florin said that while most users do not buy anything, a sizable minority ends up spending $15 to $20 a month.
via NY Times