Riccitiello: Price cuts were too late

John Riccitiello has accused the major console platform holders of taking too long to cut the pieces of their consoles last year as the industry fought to cope worldwide economic challenges.

In 2009 there was a lack of aggressive first party pricing – [they were] a little bit too late with their price cuts,” the EA boss told investors, as transcribed by Seeking Alpha. The market was soft for the reason I just identified.”

Sony and Microsoft waited until August last year to cut the prices of PS3 and Xbox 360, and Nintendo didn’t make its move until a month after that.

However, despite its recent struggles Riccitiello continues to believe EA is well positioned for the year ahead.

Our packaged goods business is performing,” he added. We have gained market share this fiscal year as a result of great quality and improved marketing. In fiscal 2011, we believe titles like Medal of Honor, Crisis 2, Dead Space, the Sims 3 on console and others have breakout potential.

We have a profitable scaled digital business that recently hit the $0.5bn threshold. Our digital business is growing at 30 per cent, and is projected to break through three quarters of $1bn in fiscal 2011. We have programs in place that should take this to well beyond $1bn in the coming two fiscal years.”