FUS1ON
07-21-2007, 02:33 PM
EA Chief Cites Need
For More Innovative Games
By NICK WINGFIELD
July 9, 2007; Page B4
Electronic Arts Inc. became the world's biggest maker of videogames by relying on a formula now widespread in the industry: pumping out sequels of familiar game franchises, like Madden football, that consumers bought almost on cue. Now, its new chief executive says EA and other game makers must change their ways or risk losing audiences to more compelling forms of entertainment.
In his first in-depth comments since taking the job in April, John Riccitiello says he worries that the Redwood City, Calif., company and others in the industry make too many games that lack innovation. He says EA and others need both to push more aggressively beyond traditional audiences to court "casual" consumers and to experiment more with new sales approaches -- outside the norm of selling $50 to $60 discs with 40-hour games that he says few players ever finish.
"We're boring people to death and making games that are harder and harder to play," Mr. Riccitiello said in an interview.
The blunt comments by the 47-year-old Mr. Riccitiello -- a former top executive at EA who returned to the company after a stint in private equity -- are likely to cause a stir at the annual E3 games conference this week in Los Angeles. Many of his criticisms have been articulated by analysts and others, but rarely have they been made so publicly by the head of major videogame company. They are a departure for EA management, which in the past has played down its challenges.
Mr. Riccitiello praises some new games, including Activision Inc.'s Guitar Hero series and Vivendi SA's online World of Warcraft, as well as a music game by Viacom Inc.'s MTV called Rock Band, which EA will distribute. But he says there aren't enough titles that break new ground. He said he believes making sequels is still a sound strategy, as long as they are more innovative than in the recent past.
"For the most part, the industry has been rinse-and-repeat," he says. "There's been lots of product that looked like last year's product, that looked a lot like the year before."
EA is suffering more than others in part because of its leading share of sales. It is common for game makers to hit a financial speed bump every five years or so as companies such as Sony Corp., Microsoft Corp. and Nintendo Co. bring out new game devices. But consumer demand for the latest machines has been slower than in the past, delaying the payoff from investments in new games by EA and others.
EA's sales in the fiscal year ended March 31 totaled $3.09 billion, up just 5% from a year earlier, while net income plummeted 68% to $76 million, continuing a three-year downtrend.
Mr. Riccitiello worries that competition puts the games business "at risk of being a little less interesting than Facebook and iPods and the next cool cellphone."
Write to Nick Wingfield at nick.wingfield@wsj.com
http://online.wsj.com/public/article/SB118387245259860156-CZxlr9ocNSbycu2KBeT8zwpcMo4_20070807.html?mod=tff_ main_tff_top
For More Innovative Games
By NICK WINGFIELD
July 9, 2007; Page B4
Electronic Arts Inc. became the world's biggest maker of videogames by relying on a formula now widespread in the industry: pumping out sequels of familiar game franchises, like Madden football, that consumers bought almost on cue. Now, its new chief executive says EA and other game makers must change their ways or risk losing audiences to more compelling forms of entertainment.
In his first in-depth comments since taking the job in April, John Riccitiello says he worries that the Redwood City, Calif., company and others in the industry make too many games that lack innovation. He says EA and others need both to push more aggressively beyond traditional audiences to court "casual" consumers and to experiment more with new sales approaches -- outside the norm of selling $50 to $60 discs with 40-hour games that he says few players ever finish.
"We're boring people to death and making games that are harder and harder to play," Mr. Riccitiello said in an interview.
The blunt comments by the 47-year-old Mr. Riccitiello -- a former top executive at EA who returned to the company after a stint in private equity -- are likely to cause a stir at the annual E3 games conference this week in Los Angeles. Many of his criticisms have been articulated by analysts and others, but rarely have they been made so publicly by the head of major videogame company. They are a departure for EA management, which in the past has played down its challenges.
Mr. Riccitiello praises some new games, including Activision Inc.'s Guitar Hero series and Vivendi SA's online World of Warcraft, as well as a music game by Viacom Inc.'s MTV called Rock Band, which EA will distribute. But he says there aren't enough titles that break new ground. He said he believes making sequels is still a sound strategy, as long as they are more innovative than in the recent past.
"For the most part, the industry has been rinse-and-repeat," he says. "There's been lots of product that looked like last year's product, that looked a lot like the year before."
EA is suffering more than others in part because of its leading share of sales. It is common for game makers to hit a financial speed bump every five years or so as companies such as Sony Corp., Microsoft Corp. and Nintendo Co. bring out new game devices. But consumer demand for the latest machines has been slower than in the past, delaying the payoff from investments in new games by EA and others.
EA's sales in the fiscal year ended March 31 totaled $3.09 billion, up just 5% from a year earlier, while net income plummeted 68% to $76 million, continuing a three-year downtrend.
Mr. Riccitiello worries that competition puts the games business "at risk of being a little less interesting than Facebook and iPods and the next cool cellphone."
Write to Nick Wingfield at nick.wingfield@wsj.com
http://online.wsj.com/public/article/SB118387245259860156-CZxlr9ocNSbycu2KBeT8zwpcMo4_20070807.html?mod=tff_ main_tff_top