Last year’s console price cuts were too late to the party, EA’s John Riccitiello feels. Speaking during the company’s third fiscal quarter earnings call recently, the CEO put the late price cuts among the reasons the industry as a whole showed weakness last year. A “factor in 2009 was sort of a lack of aggressive pricing on first-party if you will, a little bit too late with their price-cuts,” he said, pointing out that users not spending time with their machines is not the issue. Console usage has in fact increased according to their research.
“First up we do have data and research on the amount of time consumers are spending with games, and increasingly and importantly they’re spending more time with their consoles than they ever have before – so I don’t think it’s a consumer behaviour issue if it’s anything at all.”
Analysts have said they expect further price cuts this year, as early as by summer according to Wedbush’s Michael Pachter.