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View Full Version : FPS-Admin/EA spends 2 or 3 times more on advertising


Wolverine
08-27-2009, 09:32 PM
Than on development..

Quote:
In a speech at the Hot Chips conference at Stanford, Hilleman talked about the changes he has seen in more than 25 years at EA, which he joined as employee No. 39 in 1983. The audience is moving beyond males. The platforms are becoming mobile, social and online-connected. And the play style is moving from hardcore to casual. The business models are in flux as well.

Hilleman, who once worked at the Nevada nuclear weapons test range, got a job copying disks and packaging games at EA. He quickly shifted into making games and oversaw the development of the first EA Sports games, such as Madden football and NHL Hockey. EA Sports is now a multibillion dollar franchise and it now includes “anything that EA can market on ESPN.” Last year, he became chief creative officer, replacing Bing Gordon, who left to join Kleiner Perkins.

EA now typically spends two or three times as much on marketing and advertising as it does on developing a game. That’s because advertising is critical to getting a game in the top ten rankings. If you have a $10 million game, don’t be surprised if the the TV advertising costs drive the ad budget to $30 million. If a $60 game yields revenue of $35 for EA, then (according to my math) the company has to sell 1.1 million copies just to break even.
http://games.venturebeat.com/2009/08...e-engineering/ (http://games.venturebeat.com/2009/08/26/eas-chief-creative-officer-describes-game-industrys-re-engineering/)

Thanks to NZ at nvnews for the post.

So thats why the quality of games is declining yet cost is rising. I think I understand now.


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