EA cuts some game prices to boost sales

Posted on Tuesday, November 15 2005 @ 3:29 CET by Thomas De Maesschalck
Some lovely news from the gaming industry just came in today. CNET reports Electronic Arts decided to cut prices on some titles by 20 percent to boost sales and thwart competition!

They report NBA Live 06, Burnout Revenge and NASCAR 06 were among the console games subject to the price cut from $49.99to $39.99.

Unfortunately EA claims there's no change in EA pricing policy. A spokesman says EA is making pricing decisions on a title-by-title, market-by-market basis. One of the reason for the price drop appears to be soft sales of video games as consumers are waiting on new consoles like Microsoft's Xbox 360.
Cooper said he believed EA also reduced prices on superhero game "Marvel Nemesis" and extreme sports title "SSX On Tour" due to sluggish sales. He said it appeared that EA trimmed the prices on sports games to stimulate sales.

"Lower prices are likely to stimulate increased demand, but to what degree is unknown," Cooper said.

Cooper noted that lower prices would pressure gross margins but that EA may be able to offset the impact by cutting marketing spending as store traffic increases.
Lets hope other firms will follow. I believe they could make a lot more money by selling games much cheaper. And this doesn't only count for the gaming industry but also for the music and movie industry.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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