EA: Bandwidth Still An Obstacle For Digital Game Delivery
Eventually, the majority of all video games sold will be delivered digitally.
But it won't be happening tomorrow. Electronic Arts CFO Blake Jorgensen says the full digital revolution is still a ways off; speaking during the Credit Suisse 2013 Technology Conference (as cited by GameSpot), the executive was asked when approximately one-third of all EA games would be sold via full-game download.
"I don't know when the 30 percent target hits. That's probably still a ways off. We're much lower than that today on full-game downloads."
Although all PlayStation 4 and Xbox One games are available digitally right off the bat, Jorgensen says bandwidth speeds aren't where they need to be for the majority of consumers. Furthermore, as file sizes continue to increase, the delay in delivery gets even longer.
"I think a lot of the constraint there will continue to be bandwidth into people's homes. At the same time, the size of games has gotten bigger and more complex and so it's eaten up some of the benefits of [increased] bandwidth."
That all being said, he added that digital is the "right direction" because it will benefit the company's economics. Simply, digital games have a much higher margin when compared with physical products, and for obvious reasons. And there's no doubt that most consumers will embrace digital if they haven't already. It's basically inevitable.
12/3/2013 9:25:33 PM John Shepard