Greetings! E3 perspective: An interview with John Riccitiello, CEO of Electronic Arts ... VB: Why are you doing some things like Nucleus (a community that connects gamers who play multiple EA games)? What is that heading toward? JR: There is a longer-term transition from a disk-based model for retail sales to an “average revenue per user” model. Five to seven years from now, investors will look at EA as how we have 100 million customers where we have an ARPU relationship that amounts to so many dollars a month. It’s different from selling so many disks a month at wholesale prices. It’s a gradual evolution. But we need the tools to be able to do that. The ARPU model is a better margin business for us. It’s less cyclical. It’s a better business. Some of our businesses have characteristics like that: EA Mobile, Pogo.com, and The Sims. We want to move in that direction. People predicted the demise of the DVD rental model for Blockbuster a long time ago. I don’t want to be the guy with a retail store renting DVDs in a world that has moved to Netflix and pay-per-view. We want to innovate and drive along that front, whether it’s with FIFA Online or Pogo or The Sims. Nucleus is a positive step in that direction. Spore has a download model. We could wait for someone else to eat our lunch or we could do it ourselves. So, expect to pay for play. Limited installations are here to stay, monthly fees to play online, paid downloadable content, EA Store and its limited download policy will continue, DRM will escalate, etc.