Video game publishers have been having a slightly more difficult time with the console transition than they may have anticipated. In order to help push current-gen sales, EA is slashing prices on some of its upcoming titles.
In a move that leading publisher Electronic Arts likely is making to spark sales of current-generation softwareâ€â€which many analysts have said are in decline and will continue to slumpâ€â€Reuters is reporting that the company plans to cut prices on certain current-gen titles.
Two of EA's most anticipated video games, The Godfather (March 14) and Black (February 28), will retail for $39.95 when they hit store shelves. This is a 20 percent discount on the typical $49.95 debut price, which should make a purchase more appealing to consumers. Many consumers have been sitting back, waiting for next-gen, but because of the Xbox 360 hardware shortages many customers have left stores empty handed, ignoring current-gen software in the process. This has made the console transition more difficult for many publishers in the industry, not just EA.
"$39 is resonating with consumers given the transition," said EA spokesman Jeff Brown. "There are indications that $39 is a solid and sustainable price point."
This isn't the first current-gen price cut that EA has made as the company grapples with the overall sales slump in the market. In January the publisher lowered the price on Need for Speed Most Wanted to $39.95 to boost sales of that title as well. Brown indicated to Reuters that the price cut seems to have stabilized sales of the racing game for now.
It'll be interesting to see how the market reacts to these price cuts. We would guess that several other publishers could soon follow EA's lead and drop the prices on their upcoming current-gen software also. It could be just the strategy the industry needs to boost overall sales. $39.95 looks like a bargain when it's sitting on the shelf next to a next-generation game priced at $59.95.
In a move that leading publisher Electronic Arts likely is making to spark sales of current-generation softwareâ€â€which many analysts have said are in decline and will continue to slumpâ€â€Reuters is reporting that the company plans to cut prices on certain current-gen titles.
Two of EA's most anticipated video games, The Godfather (March 14) and Black (February 28), will retail for $39.95 when they hit store shelves. This is a 20 percent discount on the typical $49.95 debut price, which should make a purchase more appealing to consumers. Many consumers have been sitting back, waiting for next-gen, but because of the Xbox 360 hardware shortages many customers have left stores empty handed, ignoring current-gen software in the process. This has made the console transition more difficult for many publishers in the industry, not just EA.
"$39 is resonating with consumers given the transition," said EA spokesman Jeff Brown. "There are indications that $39 is a solid and sustainable price point."
This isn't the first current-gen price cut that EA has made as the company grapples with the overall sales slump in the market. In January the publisher lowered the price on Need for Speed Most Wanted to $39.95 to boost sales of that title as well. Brown indicated to Reuters that the price cut seems to have stabilized sales of the racing game for now.
It'll be interesting to see how the market reacts to these price cuts. We would guess that several other publishers could soon follow EA's lead and drop the prices on their upcoming current-gen software also. It could be just the strategy the industry needs to boost overall sales. $39.95 looks like a bargain when it's sitting on the shelf next to a next-generation game priced at $59.95.
