The sky isn't falling. A numbers based view.

Im sure almost all games will have a cash shop ready from now on though =)

So... you are denying the fact that EA is focused on box sales over all else?

MMOs is mice nards to EA. They want box sales. They will take profitable contribution of revenue from their MMOs, but make no mistake about it.... EA is a box sales company first and foremost.

In the news I read the adquisition included:

• Lucasfilm
• Industrial Light and Magic
• Skywalker Sounds
• Skywalker Ranch

No mention of LucasArts. Either (a) the adquisition was to get another movie division like Marvel or Pixar, where a game division has nothing to do with, or (b) the game division has some money loss somewhere and they said no.

“Disney bought all Lucasfilm companies, including LucasArts. For the time being, all projects are business as usual. We are excited about all the possibilities that Disney brings,” Lucasfilm publicist Barbara Gamlen said.
Read more at http://venturebeat.com/2012/10/30/di...F8OFM3ciJVF.99

It does not matter guys.

Since corporations account for capital investments in product development as a sunk captial cost, amortized over a period of years (and regardless if they ever launch a product), there is no direct cost recovery in their financials. In other words, it's not part of a calculation against the margins and contribution of the product.

EA is transitioning away from box sales and going all out for digital downloads. I think this has more to do with retailers refusing to stock PC games over higher margin console games.

.... Since they didn't change the data I would believe the old estimate is still valid.

....

No new data equals same as old data.

Very scientific......

Knock knock... from a business standpoint..... digital sales ARE box sales..... just without the cardboard box. They are point of sale retail merchant transactions... only the medium of delivery is different. And the margins are much higher... hence the business driver.

As for who is driving digital sales.... follow the profits.... the big game companies with native digital distribution capabilities is where the focus is. EA is one of them.

In fact.. EA makes a business out of distributing 3rd party games as well. Profit margins on digital sales of a product are simply higher margins if you own the product IP. For EA, selling 3rd party products through their infrastructure is sauce for the goose since it costs them virtually nothing.

Note: your inventory statement is invalid and obsolete. Retail merchants built agreements over the years for the product producer to hold inventory until "just in time". All the very large merchant chains do it this way now days. Some, like Best Buy Online are even having some inventory shipped directly from the product producer after sale to a customer. That said... when discussing digital delivery... correct.... no inventory.

I think people are missing out that they also stated that they still have 'well above' 500,000 and later stated that their sub numbers are 'much larger' than 500k.