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EA realigns business as iPad outdoes game consoles
30 July 2011 , Written by Dhruv Tanwar
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John Riccitiello, CEO of Electronic Arts Inc., has outlined a three key strategies to take the company forward, saying that the game industry has fundamentally changed and games are reaching a far larger audience base than ever before.

EA_Riccitiello
Offering an overview of the industry in an earnings conference call,  Riccitiello said the industry has radically changed and the pace of change has accelerated dramatically.

“Gone forever is the four to five year console cadence that gave developers ample time to invest and retool for the next big wave. Consider that just 18 months ago there was no iPad. Google was just experimenting with Android and most big games were limited to a single revenue opportunity at launch. Consider that each of the major consoles now has a controller that encourages users to get off the couch and get into the action,” he said, summing up the current market scenario.

Riccitiello  said that on smartphones and tablets such as Apple's iPhone and iPad, the top paid apps are all games. “Recognize that the fastest-growing revenue streams for console, PC, smartphones and tablets are all digital and that EA is partnering with its retail and platform partners to help jointly grow these digital revenue streams,” he said.

Accordingly, EA will now build its business around three key strategies:
  • Intellectual Property,
  • Platform, and
  • Talent.


Under Intellectual property, EA is building the strength of its most important IP, which means about a dozen very substantial properties. Riccitiello said each of these will be transformed into year-round businesses with major package goods launches, social launches, mobile launches, downloadable content and micro transactions. Riccitiello said EA's Fiscal 12 SKU plan and title focus on Battlefield, Need for Speed, Madden, [fee for] The Sims and Mass Effects are “all great examples of this strategy.” EA's recently announced acquisition of PopCap Games will also add strength to its portfolio of intellectual property, he said.

On Platform, Riccitiello said the team at EA is working to establish EA as a platform while maintaining a strong partnership with key retailers, both retail and digital.

For Talent, EA's creative teams are taking on the challenges to develop and manage content across the full spectrum of the company's various channels and business models. “This makes the job more interesting and rewarding and also connects them more closely with the changing marketplace,” Riccitiello said. He said creative and engineering talent is “at the core of what we do and we're making sure that EA is the best place to work for these industry leaders.”

Image: courtesy EA.com
 

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