EA’s next gen plans exclude Wii U, used games DRM with always online consoles
It looking more and more like both Sony and Microsoft will be announcing next gen consoles, PS4 (Orbis) and Xbox 720 (Durango) this year with Sony going first next week. With the relase of next gen consoles, the video game landscape could change dramatically.
With Nintendo already beating everyone to the punch (some would say catching up), the industry is already splintered with the lines between current and next gen blurred.
According to Gamasutra, John Riccitiello, EA’s CEO recently stated that the company is heavily investing in “gen-four” consoles (next gen). As to why EA is adopting the term gen 3 instead calling it gen 5 (the case for Nintendo), is most likely pinning the first PlayStation as the beginning of the console cycle.
Riccitiello stated that he felt that Nintendo’s Wii U is not gen 4, but did not elaborate except stating that there was a “sharp distinction” with what’s coming soon.
Ours is an industry where a lot of devices come in and represent themselves as the next generation, or the next generation after that. In many ways we would argue that the what we’re describing as "gen 4" is yet to come. It’s that that we’re excited about, and that’s what we’re investing in. And frankly, we’ve been quite consistent with that for some time, while recognizing the frustration our inability to articulate precisely why causes for you.
EA’s CFO, Blake Jorgensen recently spoke at a Q&A session at Goldman Sachs Technology and Internet Conference in San Francisco. While Jorgensen was careful not to reveal any actual information about the next gen consoles, he did drop some compelling hints that would indicate that Xbox 720 and PS4 will be launching this holiday.
Jorgensen revealed that the company has earmarked under $100 million for R&D on next gen games which will be spread out through this year and into 2015. He also expressed his belief that games such as FIFA will help push next gen console sales as gamers will want to play with their friends and will need to switch gens.
As to if gamers should be excited about next gen consoles, Jorgensen has seen them and believes that people will be “pretty excited.”
No one’s really seen [gen 4 consoles] yet… I mean, we have internally, but no one externally has really seen what the look and feel will be like on the new consoles. So I’ll reserve judgment other than to say that I think people are going to be pretty excited.
The last topic of discussion was around the used games market, which actually left a sour taste in my mouth. Jorgensen stated that he “can’t really comment” on how next gen consoles will deal with the used games but states that the trend has always moved towards “always-on connectivity” which could become an issue with used games in the future.
I can’t really comment on where the next generation boxes are going to be relative to used games. I will say that the trend in the business is to have that always-on connectivity and connect with a customer, and to the extent that the software identifies a certain customer is going to create some issues going down the road in the used game market. But I do believe that the consumer likes it, and it’s been good for the retail channel.
A rumor reported recently by Edge indicated that the Xbox 720 will have some sort of always online requirement that prevents used games from being played on the console.
22 Responses to “EA’s next gen plans exclude Wii U, used games DRM with always online consoles”
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February 13th, 2013
“A rumor reported recently by Edge indicated that the Xbox 720 will have some sort of always online requirement that prevents used games from being played on the console.”
Well, I think we can pretty much add the PS4 to that rumour.
I think it’s the logical next step, and like I’ve said before, I’m actually ok with it.
February 13th, 2013
I am not okay with the idea of the next generation of consoles blocking used games.
February 13th, 2013
I don’t buy used games so on a personal note, I’m not affected. However, I could see how this could hurt them with some of the biggest resellers refusing to carry the console and games.
As it is, all console digital game purchasers will be like this anyway. Steam is already like this now.
If Sony does go this way, hopefully PS+ gets upgraded to allow a two day PSN pass or level cap at the very least.
Mike excluded part of the interview. The thing that hurt me the most was this guy talking about no BC and how it’s a great idea.
February 13th, 2013
Phranc
“Mike excluded part of the interview. The thing that hurt me the most was this guy talking about no BC and how it’s a great idea.”
On which Console, or was it both?
February 13th, 2013
EA guys didn’t specify so it sounded like both.
February 13th, 2013
http://m.kotaku.com/5983793/next-generation-most-likely-wont-be-backwards-compatible-ea-exec-says
“The next generation of consoles are unlikely to accommodate older games with backwards compatibility, Electronic Arts’ chief financial officer told an audience of investors in San Francisco today.
Blake Jorgensen, addressing how EA will manage when new consoles arrive later this year, as is widely expected, pointed to the company’s sports catalog and particularly their multiplayer offerings in explaining why they should sell strong up to the changeover.
“An important thing to remember is that next-gen consoles will most likely not be backwards compatible,” he said at Goldman Sachs Technology and Internet Conference in San Francisco, according to a transcript of remarks published by Gamasutra. “And if you [play] multiplayer on a game, you’ll most likely not be able to play with someone on a different generation.”
These sports gamers will not wait until the holidays for the next console generation, Jorgensen reasoned, if their favorite games are releasing between July and October. “I think that works for us positively in both ways. It helps us continue to sell gen-three products, and it will help us sell gen-four products as that cycle finally gets into place.”
Sports also present a strong draw for what Jorgenseen foresees—again, doing so very broadly—as a distinguishing feature of the next console generation. “You’re going to see people playing on glass at the same time they’re playing on the console,” Jorgensen said.
This has several applications in keeping gamers connected to EA Sports’ lucrative Ultimate Team modes. Jorgensen imagined gamers playing their matches at night, then in the morning, continuing their experience during a commute—trading players, managing rosters, and more. “And all along the way, we’re either doing microtransactions or just simply staying connected to the customer,” Jorgensen said.
Jorgensen didn’t revisit backwards compatibility and was careful to be vague about potential features for the next console generation, saying that EA, of course, has seen their capabilities internally. He largely avoided a question about what the next Xbox or PlayStation would mean for used games. “I can’t really comment on where the next generation boxes are going to be relative to used games,” he said. “I will say that the trend in the business is to have that always-on connectivity and connect with a customer, and to the extent that the software identifies a certain customer is going to create some issues going down the road in the used game market,” he said.”
February 13th, 2013
http://m.kotaku.com/5983813/gamestop-says-60-of-surveyed-gamers-wouldnt-buy-a-console-if-it-blocks-used-games
February 13th, 2013
I don’t really buy used games either but this means that I would forever be stuck with any dud of a game that I happen to buy new because I can no longer trade the game in anymore.
February 13th, 2013
Hmm
Interesting about the used games & BC thing.
I’ve seen loads of stuff about MS having BC.
Some speculated that the machine would be able to boot to a 360 mode for older games,(in the same way the 360 does for xbox originals) others that it could straight out play the 360 games in 720 mode with enhancements due to improved hardware.
So far what I’ve read regarding MS has all suggested that it’s got BC.
PS4 on the other hand will need to have some kind of hardware module to allow PS3 games to play, just because the PS4 setup is so vastly different to the PS3, wich has some features that just can’t be emulated. This for me makes BC for the PS4 more unlikely due to the expense of including the necessary hardware.
It ill be interesting to hear what both parties actually do.
February 13th, 2013
Hmm
Interesting about the used games & BC thing.
I’ve seen loads of stuff about MS having BC.
Some speculated that the machine would be able to boot to a 360 mode for older games,(in the same way the 360 does for xbox originals) others that it could straight out play the 360 games in 720 mode with enhancements due to improved hardware.
So far what I’ve read regarding MS has all suggested that it’s got BC.
PS4 on the other hand will need to have some kind of hardware module to allow PS3 games to play, just because the PS4 setup is so vastly different to the PS3, wich has some features that just can’t be emulated. This for me makes BC for the PS4 more unlikely due to the expense of including the necessary hardware.
It will be interesting to hear what both parties actually do.
February 13th, 2013
My preference. I’d take BC before, being able to play used games.
What I see based off of what I’ve been reading though, is most people would not bother with the Next box if it blocked used games but care a bit less about the BC aspect.
So far it appears from what a Sony exec said that it’s anti consumer to block used games…
http://whatculture.com/gaming/at-least-one-sony-executive-against-blocking-used- games.php
February 13th, 2013
I hate how my links get broken.
https://www.google.com/search?q=sony+exec+states+used+games+are+good&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a
February 13th, 2013
IF neither machine has BC, I will pass on getting them at launch.
I’ll wait till there are enough games and probably a price drop before buying.
If only one Has BC I will get that machine at launch, and wait a while for the other,
If they both Have BC, it will be down to cost, performance & launch games. But would probably end up getting both pretty soon after launch anyway.
February 13th, 2013
Told you Wii U is current gen lol.
February 13th, 2013
To hell with EA and any always on console.
February 13th, 2013
I’m ready for next gen but I will say to hell with it. It will give me more time for my new baby.
February 13th, 2013
By the way someone tell that dick it’s not gen 4 or 5.
I recall many consoles before the PS came to pass. Hell even Nintendo had the NES, SNES, N64 and game cube before the Wii and WU.
February 13th, 2013
“I don’t buy used games so on a personal note, I’m not affected”
I always laugh when people say things like this. Sales don’t affect you in any way either? Like when a dev doesn’t sell enough of your fav game so they make the choice to kill the IP? Or a console company doesn’t sell enough hardware and decides to axe a console you have hundreds invested in.
Used games help keep retail stores in business. And hardware? Well if people like me can only buy new games I would only be able to buy a fraction of games and there is no way I would buy a $400 console to get a few games to play. And I am not alone.
So it affects every gamer.
February 14th, 2013
Maybe it would help if you didn’t half quote me ncaissie.
The rest of that paragraph stated:
” However, I could see how this could hurt them with some of the biggest resellers refusing to carry the console and games.
When all you’re really saving is $5 per used vs new games the saving shouldn’t make it impossible for you to afford new games.
While I also understand that “some” used game sales in return turn into a new game sale, by looking at resellers like Gamestop, you can see that a huge percentage of the money they make is on used games sales.
Gamestop also has a practice that straight up hurt the gaming industry.
If you’re not satisfied with a used game purchase, for any reason, you can bring it back and exchange it for another used game. This more or less makes the initial purchase of the used game for say $35, a subscription to go back and forth and “renting” unlimited used games.
Don’t say this isn’t possible, as I know someone who does it. Whenever he has the nerve to complain to me one way or another that Sony’s doing this or Sony’s doing that…My retort is simple. He doesn’t support the industry in any way that he’s complaining about. His points are moot.
February 14th, 2013
I don’t care at all about BC, once I’m upgraded to a new machine, I never play old games.
But as for used games? First, how are you only saving $5? I never buy a used game until it’s under $20. Every game I buy used is a game I wouldn’t buy otherwise. But if I enjoy it I’ll buy the next one at full price. For example, I bought Dead Space 1 for $12. Would never have tried it or bought future games. But I loved it and bought 2 & 3 at full price. That $12 game was basically advertising for the next games in the series.
And quite honestly, games like CoD aren’t worth anything like $60. Especially if, like me, you only play the single player.
And I don’t know what Gamestop you’re going to but they don’t accept any returns other than to exchange for the same game. Sure, you can sell your used game back, but you’ll get even less than you paid for it.
I’d also expect $70 games in the next gen too, making used games even more important.
February 14th, 2013
“But as for used games? First, how are you only saving $5? ”
I’m going to use Gamestop here and not third party sellers on ebay (for clarification).
Sometimes less than $5.
http://www.gamestop.com/ps3/games/dead-space/67935
“And quite honestly, games like CoD aren’t worth anything like $60. Especially if, like me, you only play the single player.”
In the same boat, but it’s really that I refuse to support Activision in any way (like they need me).
I would just borrow it from someone, or you could also wait until it’s cheap new. Also.. when I say new, I mean not pre owned.
Blops 2 preowned is $10 more than NEW!
h*tp://www.gamestop.com/xbox-360/games/call-of-duty-black-ops-ii/101863
“And I don’t know what Gamestop you’re going to but they don’t accept any returns other than to exchange for the same game. Sure, you can sell your used game back, but you’ll get even less than you paid for it. ”
You can return the used game for your money back within 7 days.
h*tp://www.gamestop.com/gs/help/Returns.aspx]
“Pre-owned Guarantee
This pre-owned product has been carefully tested, and is guaranteed to work. If you are not completely satisfied, simply return the product within 7 days for your money back or identical exchange within 30 days of purchase.”
My buddy just uses the money he gets from them for another used game. It’s straight up exploitation of what would seem like a nice policy, but you can see how this can hurt the game industry if people, buy used, play, return, and repeat.
February 20th, 2013
Why would you buy a used game that was just released? Sure, you’re not getting more than $5 off. Although, add my Game Pro Plus membership and I get another $5 off, so I save $10. That’s not bad, and certainly better than paying $60. But wait a month or 2 and you’ll get it for half price at most.
But I’m, talking about buying used games that are 6 months old. Dead Space 1 may now be listed at $30 used, but it’s easily available for less than $10, I just saw it at my local GameStop for $8.99.
You say to borrow it. From who? Not everyone has friends that buy the games I want to play. That’s not an option for many people and quite honestly, it’s worse than buying used because even GameStop doesn’t make any money.
And BTW, your return link is no good. But a quick glance at GameStop’s site shows they do not allow any returns on new or used games, only exchanges. Period. The only way to get your money back is if the game doesn’t work, which they test in-store. I even called to for clarification on the policy. Either your buddy is full of shit or you are.