EA Makes $10 - 15 Million Off Online Pass

September 9, 2011 -

According to a Gamasutra report cover comments from Electronic Arts CFO Eric Brown, EA's "Online Pass" has made the company $10-$15 million since. Interestingly enough, the company categorizes that figure as "not a lot of money." I suppose to a company the size of EA that amount of money is chicken scratch to them.

"The revenues we derive from that haven't been dramatic. I'd say they're in the $10-$15 million range since we initiated the program," he said.

He went on to say that while the amount of money gained from the program has not been dramatic, all this "found revenue" has come from consumers who were consuming "bandwidth for free."

EA launched its Online Pass earlier this year as a way to earn some money off of used game buyers who wanted to play their games online. The Online Pass typically cost used game buyers an additional $10 - which, oddly enough, puts the price of a used game + Online Pass near the cost of a new game, typically.

Source: Gamasutra


Comments

Re: EA Makes $10 - 15 Million Off Online Pass

"Found revenue" makes it sound like it was missing. It wasn't.

Re: EA Makes $10 - 15 Million Off Online Pass

Bandwidth consumed via communication with your end user is just another cost of business, like say, electricity. In the long run, trying to recoup such costs from your customers is bad for your business and infrastructure.

If you are really worried about bandwidth, get a connection to a tier 1 ISP (a penny a gigabyte) or become an ISP to yourself.

Re: EA Makes $10 - 15 Million Off Online Pass

Forcing me to use there privacy invasive software will preclude me from buying any of their games in the future.

Re: EA Makes $10 - 15 Million Off Online Pass

...all this "found revenue" has come from consumers who were consuming "bandwidth for free."

Uh, you do realize the original owner of the game is no longer consuming your bandwidth, right?

 

Andrew Eisen

Re: EA Makes $10 - 15 Million Off Online Pass

Any sensible business model would account for the average life time of a game for a single player. In other words, costs allocated from the sale of the title would generally account for the fact that the purchaser of the game will see their gameplay wane. When you resell a game this behaviour changes such that there is likely an increase in the amount of network service usage per disc sold and I would expect this increases with every second hand sale of the game.

Game publishers/developers have to absorb a huge amount of risk for any game they publish, EA is no exception here. Personally I don't have an issue with them charging for online access so long as the fee is reasonable ($10 is reasonable), the fact that you are paying close to new disc rates after the purchase isn't the fault of EA, it is the price gouging that occurs by the reseller. Your beef should be with GameStop (or where ever you bought the game), clearly the second hand value of the game is not inline with your expectations.

Re: EA Makes $10 - 15 Million Off Online Pass

Interesting way of looking at it but the sensible business model would then account for the used market and understand that, thanks to second hand sales, the total number of users might not wane as quickly.

And to be clear, I have exactly zero problems with the "online pass" idea.  Thanks to GameStop's absurd used pricing, I think it's an excellent way to make buying new a more attractive prospect (unless the used buyer didn't care about online in the first place).  I would expect GameStop (and I don't shop there so maybe they do this) to knock an additional $10 off the used price of games that do the "online pass" thing.

 

Andrew Eisen

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
MechaTama31I appreciate the sentiment of the Ms Marvel thing, but defacing *is* still defacing, and free speech is a license to spread hate, if that's really what you want to do with it.01/27/2015 - 7:42am
ConsterAm I the only one imagining the Deep Silver spokesperson making scare quotes Dr Evil style while saying 'incorrectly classified'?01/27/2015 - 7:22am
Michael Chandrahttp://www.telecompaper.com/news/kpn-vodafone-fined-for-net-neutrality-violations--106167501/27/2015 - 5:10am
Michael ChandraThe other for allowing people to watch HBO through an app without being charged for the data-traffic, which was steering customers in their internet behaviour. Both of them against the Net Neutrality Law. 01/27/2015 - 5:10am
Michael ChandraYay, two dutch telephone companies got fined. :) One for blocking selective traffic at their free wifi-hotspots (internetcalling amongst others, prolly Skype and such).01/27/2015 - 5:09am
Andrew EisenHow many people do you think will return their copy for a censored version of the game? My money is on zero.01/27/2015 - 12:47am
Goth_Skunk@Cheater: If I were an Australian consumer, there's no way I'd be returning it.01/26/2015 - 10:43pm
Cheater87Ooops http://stevivor.com/2015/01/ps4-copies-saints-row-iv-re-elected-undergoing-product-recall-australia/01/26/2015 - 10:13pm
Andrew EisenOkay, well I've passed the request along.01/26/2015 - 9:03pm
ZippyDSMleeI loath itunes..........01/26/2015 - 9:02pm
Goth_SkunkUNLESS you haven't downloaded the most 3 recent episodes. Then it cancels your subscription automatically.01/26/2015 - 8:56pm
Goth_Skunk@AE: No. iTunes instead just downloads it automatically, provided you've set it up to do so in your preferences.01/26/2015 - 8:56pm
Andrew EisenAnyone know if iTunes sends email notifications when there's a new episode of a podcast you're subscribed to?01/26/2015 - 8:30pm
ZippyDSMleeAck!! Sorry lack of spell checker means I more incoherent than ever :P, Sign up for email notification thing for the pod cast. Probly more trouble than its worth, I guess I will have to check the site more often ><01/26/2015 - 8:22pm
Andrew EisenWhat is a "sign u email thing"? We provide a direct download link to the show every week. The video version is on my YouTube channel. You can use our RSS feed to add it to a news reader. You can also subscribe to the show on iTunes.01/26/2015 - 6:48pm
ZippyDSMleeMmm you guys ever thought about doing a sign u email thing for the pod cast? If I can click a direct link to downlaod it to toss in all daily podcast listening I might listen to it more than randomly forgtting its on here 0-o01/26/2015 - 6:37pm
prh99Too much time listening to Faux News and Bill Mahr.01/26/2015 - 5:12pm
james_fudgeit's bad pr for the bus company01/26/2015 - 5:10pm
Andrew EisenI'm sure the ones who purchased the ads are a bit peeved but I find my sympathies lacking. I have to wonder why the bus line would buy such ads in the first place. Hard to imagine it doesn't have policies against that stuff.01/26/2015 - 5:07pm
Wonderkarpthats cute. I Like Ms Marvel(hate her powerset). Whomever is doing this? Good Job01/26/2015 - 4:49pm
 

Be Heard - Contact Your Politician