EA Video Game Publisher To Focus On Subscriptions, Services In 2020

As next-generation gaming consoles are set to come to market, Electronic Arts will have a narrow release lineup in 2020, after the newest Star Wars game assisted in the company’s formidable results in the holiday quarter, The Wall Street Journal reported.

The electronic gaming company intends to expand its business in 2020 by focusing on live services, comprised of revenue from subscriptions and in-game services. The tactic mirrors a larger industry trend in which gaming firms aim to bring in revenue from blockbuster titles long after their release.

EA’s “Star Wars Jedi: Fallen Order” made its introduction in November and sold approximately eight million units over the quarter. While the firm predicted selling a range of six to eight million units by March 31, it now forecasts sales of approximately 10 million units within that timeframe.

The firm also noted that it would wait to roll out the next “Battlefield” franchise installment until the 2021 holiday season, when more consumers will be likely to own new gaming consoles that are coming to market later this year from Sony and Microsoft.

At the same time, digital revenue for the hit “Fortnite” game from Epic Games Inc. was down 70 percent in Q4 from the year-earlier period across all platforms, per Nielsen Holdings PLC’s SuperData estimates.

With more than 2.5 billion gamers around the world, consumers are demanding more content, perks and options in their online subscriptions. Gamers are set to spend $152.1 billion on games by the end of last year, putting pressure on gaming subscription services to offer competitive content, features and pricing.

Even as subscribers want access to new technologies and support for mobile games, gaming subscription services also have to cater to the historic preferences that have been slow to change in the digital world.