More signs of digital disruption in the entertainment industries. Peter Moore discusses how EA has adjusted its approach to marketing and now sees the gamer as their customer, not retail outlets:

The online environment has been incredibly valuable to EA in building a direct customer relationship. Moore said that EA’s customers used to be the retailers, but now they’re the gamers. In fact, EA has tripled its customer facing support staff resources in the last five years. It’s changing how the publisher interacts with, and markets to, gamers. He eschews “marketing” and prefers “engaging”. Social media has become crucial to success, and Moore noted that on Twitter a gamer will get a response from EA within 30 minutes to resolve a problem.

On the marketing end, Moore said that EA’s TV spend is down 20 percent while the company has actually doubled its digital spend and engagement. Social media and community management are changing the rules. Don’t spend tens of millions on TV to see if it lifts sales, Moore said; instead game companies can more effectively use digital channels and focus on performance-based marketing.

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In his keynote address, Moore also reported that digital sales now accounts for more than half of EA’s gaming sales revenue.

One Response to “Peter Moore Predicts Digital Game Revenue Will Outstrip Retail”

  1. Nathan Sisk says:

    I actually wrote a post along these lines just yesterday. The video game industry is beginning to see some upheavels that are very similar to what we’ve been going through.

    A lot of the big names behind the development houses are bailing on their publishers. Their reasoning sounds awfully familiar too.

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