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We're -- to be joined here at the CEO of -- EA electronic arts says John intelligent thanks for joining us we just off an impressive display of particularly shooting games a lot of violent games -- the -- your best source of the diehard gamers.
But what about the casual gamer you looking to broaden the audience a little bit more to bring more people under the -- so to speak.
-- super stop one of the major titles we showed today that appeals to a broader audience is the Sams and frankly it's more of the -- -- anything you can ever imagine it has virtually everything it's partially life on your PC your life on your console.
We should need for speed today what's the driving racing on can be hunted game.
I'm one of the biggest franchise in the history of driving of course justice of the shooters you know great kind of like medal of honor on titles like -- -- crisis to.
These are the -- and writer at.
Help monopoly its 75 edition not a big part of the great but it's a big part of marketplace this column and is that your your your parents house report.
And talked about connect we've seen -- Microsoft's unveiled that move is coming from Sony obviously the -- hardy had a mission control.
How does this -- challenging guys and open new doors and thinking obviously you know Madden.
Tiger Woods sports but it.
Really across all of your titles these you know the new gesture control what does it do for you guys let's remember -- we.
We love the regular control -- -- -- spectacular way to play most.
Now we also know that the -- has been incredibly successful -- -- control so -- a new kind of interface for gaming and now Microsoft's got.
The connect that would previously Project Natal.
We've got moved from Sony about it it's really just expands the market.
I'm -- -- working with while we showed here on states today.
REA sports active two which is also got a heart monitor that works with both the Sony move parent or since Sony but it's its own good input device and whip.
Xbox respect to connect.
Have been pulling back we saw the April numbers really not very -- across the entire industry -- shift to mobile.
Are you changing year in the way you're approaching the business hear -- people sort of nibbling.
You know on the 99 cents specials of the succeed awfully and he owns more if you look at the app stores in this.
How is that the change in the business it seems to be happening fairly rapidly how does that affect your business model while.
You know what I think it sort of interest thing the only public -- it's reported gaming is just the US retail sales of new but not used games.
Which is you know the US market by itself is half the industry and and but half of that is -- -- new package -- so it's a very small data point the overall -- industry grew in 2009 the overall games industry's growing 2000 and it has really is that the new reality of the connected gamers changed a lot -- -- -- the leader in mobile.
One of the leaders in social network games.
You know world leader in digital direct services in a Tiger Woods on line and you know early pioneer and and memos so -- out there doing a lot of things we're getting a lot of growth from that effect these new digital businesses the ones.
Where there really is that -- -- in the involved.
Are the fastest growing part of our business but overall it's a growth industry and were grown along with a -- a little faster.
And how are the margins in that business compared to the package goods.
They're generally -- bomb digital but this is often you know have better.
No margin structures are not dramatically so but it's a better business sports and are -- getting closer to exiting the packaged goods at some point at the controllers are going away maybe to console go away.
We got a cloud gaming united.
What -- the the hard packaged goods the resale business but we had a flying car my guess is retail goes -- But and tell my -- are probably flying cars at the point that I wanted to make is they.
It in order to get seven gigs of content which is what you can deliver or more on a Blu-ray guest on.
Into your home one of the most convenient ways to do it is is mr.
In fact we're partnering with major retailers like GameStop for our digital revenue street so.
In -- retails not when he went with a disc is going away thinking that this might as a whole lot of games where you really start.
From a different place FaceBook mobile -- we don't start with a -- But one of the fastest growing parts of the country right now are these new business models that come connected to disc based games so like Madden ultimate team -- a card based game.
That millions upon millions of consumers are in and joining.
It's it's digital cards but it starts off of the -- So I think it's way too early to call -- demise of the package it that that -- from.
And -- you're looking to expand it you know I look at the success that the mobile games the App Store type based games are having their very simple if you're looking at -- more casual gamers.
Are we seeing sort of a retro -- a throwback if you will to some these days where you're just.
Moving and shooting -- moving clicking as opposed to the more hardcore gamers where you're using more buttons and fingers.
Actually that the entire industry over the last decade it's gotten simpler.
So the core thesis on Madden that we showed here.
Was -- -- game to an entirely new way to play the game that is far more intuitive -- simpler.
One of the great things about advanced technology faster processors faster graphics chips is we can actually make things simpler for the game -- while keeping it down.
And so the frankly what I expect to have happened is the entire industry is is getting to a place where its -- in Iraq which is why we're growing now.
I expect also on the pure digital -- games might you know discovered a social networking might discovered mobile.
Those are actually benefiting.
From the big production values of sort of our version of Hollywood big package -- games.
And the packaged goods games are benefiting from all the social networking that is typical of these -- in a pure digital -- In many ways I don't think one or the other is winning I think -- -- What about partnerships Hasbro obviously very good year year year tops in the App Store there and you're talking about monopoly coming out.
Do you have other partnerships are looking do you expand upon here.
First off I'd be remiss not to mention division of Brian Goldman CEO of Hasbro and I share which is that that has programs can be huge in interactive.
I'm not flying down here playing boggle on my iPad.
If Franklin Hasbro brands whether it's inside of pogo it's in mobile iPad and iPhone are huge success.
-- -- future partnerships we don't make and practice of announcing what we might.
You know be publicly announcing tomorrow on live TV so lob a lets you know we got some health that.
Now that the whole industries of the stock prices have been depressed what do you tell investors mean all the headline news consumers pulling back jobs picture still -- -- -- -- economy and certain.
Debt crisis in Europe.
What do you tell investors they -- severe obviously a consumer discretionary business here.
The first thing I would say in as you know it's sort of January through now.
-- business is up about 20% so.
We're taking part in leading in the areas that are sort of the growth story while expanding market share and the -- -- -- So for -- it feels very good right now is quality delivers market share delivers -- -- -- the other thing I would say the overall industry has -- so as I said before.
Investor doesn't care if dollars of revenue came from an extension to -- -- the -- itself or comes from a mobile game.
-- from a desk worker comes from my social networking application that is -- that the revenues are there in the game industry is growing strong even in a recession.
Make sense by the way you think about the value that a consumer gets out of gaming vs virtually any other form of entertainment.
-- it's hard to spend more than a dollar an hour in the gaming industry for some of the most profoundly good entertainment.
So we deliver great value -- him -- It better again and lastly.
Do you see a that maybe -- price points coming down and then they add ons may -- is where you start to generate more the revenues limited the RAZR model if you well.
-- It's really hard for me a forecast and Nick Price points -- gonna have to show some of -- the games it gamers actually spend the most money on our technically trained.
And then they pay for micro transactions inside of the game in some of the games that give you the lowest price per hour per game.
The title like Madden.
Consumer can pay 25300.
Hours with their brother 500 hours of gaming for 59 dollars it's an incredible bargain in terms of our our game play.
Soak in -- frankly.
My guess is that over time what's gonna happen is consumers are going to be able to buy it if you will ala -- I want to game -- -- plant forever or one of him by you know in different you know.
Increments perhaps hourly or through micro transaction.
It's a very dynamic market think about the way by music today.
You know ten years ago -- to go to Tower Records and buy CDs.
And I can remember eight tracks cassettes that -- -- me aback but you know icing on the retail store to buy them and bought them by the album.
The -- -- -- music today anymore but I occasionally buy CDs and you often buy CDs from Amazon but I download a lot of music.
Now music didn't have a lower price point it's repackaged.
I was always paying a dollar song -- is paying it in the guise of a big piece of vinyl.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I think expected to be really dynamic think about really -- the world's it was going to be that way it is today.
When I lived in Manhattan you know ten years -- a college.
I can't remember is there were four record -- and walking it's it's my apartment my understanding is the last.
Retailer that sells new CD's in Manhattan close last year.
-- -- walking distance they're all gone the world changes in evolved I think our business is going to be vibrant for retailers.
Viagra for download businesses vibrant for online game services.
And from there it's hard to predict -- be a lot of change on the change is good for companies that are sort of fleet of -- on top of it.
Electronic arts for example of leadership in mobile social network package -- its PC and held it gives us a lot of different ways by the intelligently and industry in transition and a lot of fun as well -- so much for joining us here any theory on Fox Business.
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