November 28, 2022

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EA is resigning from selling boxed games in first countries.  The restructuring has begun.

EA is resigning from selling boxed games in first countries. The restructuring has begun.

There are promises of huge changes to some EA production fans from Europe, who preferred physical versions of production. According to the latest information presented during the last financial report, one of the company’s subsidiaries is planning a complete change in the approach to sales.

The huge popularity of digital versions of games should come as no surprise to industry watchers – subsequent letters from representatives of PlayStation, Take-Two or Activision Blizzard only confirm that fans of electronic games are increasingly choosing to buy in digital stores. According to the latest financial report of the PlayStation manufacturer, about 70% of the items have already been purchased through the PlayStation Store.

How Provided by Gameswirtschaft.deAnd the The German branch of Electronic Arts reports the increasingly difficult situation of selling games in physical copies. Although hardware and gaming revenue in Germany increased in 2021 to €10 billion, funds have not long been as popular as digital editions, subscriptions or in-game purchases. It turns out that other companies are responsible for trading EA’s digital positions.

“The ongoing transition from physical goods to digital versions continues to have a negative impact on sales growth. Digital download revenue is not processed by EA, but by an entity that works with the company.”

Therefore, the working group in the German city of Cologne began a “financial restructuring” and in May ended cooperation with local contractors, as a result Traditional games will no longer be sold in German-speaking countries and EA will no longer generate sales of boxed versions.. Of course, chiefs dealing with this part of the European region are well aware of the limitations and anticipate a “significant drop in sales revenue” in the current fiscal year.

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Electronic Arts GmbH is a branch with around 100 employees who watch not only the German market, but also Austria, Scandinavia and Switzerland. So far, there is no talk of closing the company’s headquarters, because many products are adapted there for the needs of some customers from Europe, localized and dubbed.