Electronic Arts will no longer distribute physical copies of games in German-speaking nations including Germany, Austria, and Switzerland; instead, those markets will switch to a digital-only distribution strategy.
Digital has unquestionably made a name for itself in the market over the past few years and is now the favored format for the majority of players. Electronic Arts have made a significant choice in various Central European nations considering the unstoppable drop in sales of physical goods.
- German-speaking nations will no longer be able to purchase physical games from Electronic Arts.
- The company describes the reason as falling revenue despite physical sales.
- The decision won’t have an immediate effect since certain games will be released physically as per schedule.
Electronic Arts GmbH has about 100 employees, a company situated in Cologne’s Rheinauhafen, who serve not only the German market but also those in Austria, Switzerland, and Scandinavia.
According to the most recent statement from EA Deutschland, as published by Games Wirtschaft, based on Games Economy, the company described how the shift from physical to digital was particularly detrimental to sales development and required the team to undergo economic restructuring.
As a result, EA won’t be able to sell packaged goods in German-speaking nations such as Germany, Austria, and Switzerland. EA already expects a “substantial reduction in sales” in the current 2022–23 fiscal year as a result.
In any case, the clause won’t take effect right away. The physical versions of It Takes Two and Need for Speed Unbound for the Nintendo Switch will be routinely published on November 4 and December 2, 2022, respectively.
German players may come up with a harsh reaction, dependent on how people purchase their games. Electronic Arts has updated its model for distribution. While physical releases for German players won’t be made impossible by the internet’s power, it looks like they might make use of extra methods.
The company also does not completely rule out the potential of going back on its choice should it have a bad effect or if it is successful in finding an outside partner for the physical distribution of its games in the aforesaid nations.
According to the German website Games Wirtschaft, Electronic Arts has been constantly asked to categorize the specific effects of this choice on the German location, retail, the employees, and of course, the customers since the beginning of October. The business has not yet responded to the inquiries.
In any case, the decision-making firmness of EA will depend on how German gamers respond to the decision. Anyhow, we shall be watching the outcomes of an end to physical sales.
However, we get the notion that we are in front of the beginning of a trend that may eventually also affect the other major publishers.
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