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EA sees more console price cuts, longer console cycle down the road

“The point here is that we’ve seen one major price drop thus far in this console cycle; we feel that we have a long ways to go, and a lot more of the unit sales will occur at the lower price points. History holds more [hardware] units translates, times tie ratio, to more software units and software dollars for third-party publishers. Those are the key takeaways in terms of where we see this console cycle at this point in time.” - Electronic Arts CFO Eric Brown

Mr. Brown also discussed the success of the Wii, and how it proves that the latest in graphical technology isn’t always the best way to go. On top of all this, Brown shows how consoles don’t sell their majority lifetime share at their original price point. The Wii is kind of bucking that trend, but perhaps it will sell even more after its first price drop.

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Categories: Consoles
Tags: wii

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