Like the headline says, EA’s income from direct digital distribution was $90 million this quarter.
Now, we’re talking about hundreds of millions in gross revenue, so they’re not cutting and running from retail yet. But each dollar made over the EA Store is one that goes directly to the company without any going towards manufacturing costs, shipping and distribution or a retail discount. Obviously that would be highly appealing for a company.
I mentioned before I found the EA store wanting, but as a consumer I’m totally on board with digital distribution. What sense does it make for me to go to a store, buy a DVD-ROM, take it home, copy the game in its entirety to my computer and never use the physical media again?
EA’s numbers also included sales over Xbox Live Arcade and the PlayStation Network, but I must confess ignorance on how much Microsoft and Sony take for their cut of those sales.
Speaking of which, Hothead Games came out of the woodwork to say that the Penny Arcade game with the long title is doing quite well for a game that’s exclusively digitally distributed. Also, the game is coming out for the PS3 eventually, but they had some difficulty porting the game engine. It’s not because Gabe and Tycho hate the console or anything.
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And they really don’t anymore! Home and Little Big Planet changed their minds. But seriously, I’m totally with you on digital distribution. It works for games and it works for movies, too. I remember the commercial well where a guy went to a cheap motel for the night, couldn’t get clean towels or a wake up call or any of the basic amenities, but he asked about TV and the clerk said something like “Our TVs offer every movie ever made in the history of filmmaking on demand.” I think we’re getting to that point more and more, where you’ll be able to get whatever you want without leaving the house.