Console price cuts “not enough,” EA says

During the company’s fiscal Q2 earnings call earlier today, EA CEO John Riccitiello said the recent console price cuts, while driving hardware sales, are “not enough to get the industry back to flat software sales for the calendar year.”

“We now expect packaged goods software to be down mid-to-high single digits in North America and Europe combined. This is well below our initial expectations for the year,” he said, adding that EA believes this to be a temporary condition with two things giving the company confidence.

First — even further price cuts. “We believe there is still room on the console price points,” Riccitiello said. “In the last cycle, the bulk of console sales occurred at $149 or below.” And second — Microsoft and Sony’s upcoming motion controllers.

Riccitiello says EA believes those two factors “will bring new consumers to the market” and “drive growth and extend this cycle.”