EA will officially announce today the launch of their new service: EA Link. EA Link is a complete digital distribution system for computer games meant to replace the older clunkier EA Downloader and to compete with Valve’s Steam service.
This is EA’s first true attempt at full digital distribution of their games. They will now be making every one of their PC games available for download on the same day the game is released at retail. This move signals a significant shift in EA’s strategy. EA is making sure they are positioned to grab a piece of the digital pie.
The only downside with EA’s new service is that the prices online will be identical to those in retail stores. Of course this is no different than what Valve did with Steam and Half-Life 2, but it is disappointing to consumers who expect some of the savings to be passed down to them. However, EA has to be careful not to undercut the retailers who are already upset at the loss of market share. Retail sales will continue to provide a large portion of EA’s revenue for several years to come.
As for EA, it’s a win-win solution. Every sale that goes through their service instead of retail means an increase in the profit margin. It also means greater control, as they will finally have a part in every step the entertainment pipeline, from content creation to the final sale.
