Electronic Arts and the Global Video Game Industry Essay
2158 WordsJun 17th, 20059 Pages
Gaming has become an important part of growing up for people who were born in the last 25 years. Approximately 3.9 - 4.7% of total world population (250 to 300 million people) is ¡§very active¡¨ or a ¡§frequent¡¨ player of video games or at least owns the necessary equipment. This target group spends five or more hours a week playing video games. The United States is the largest video game market in the world with about 50% of the US population (145 Million people) spending 6.5 hours a week on computers and video games. The majority of video game players are preteens, teenagers, and young adults (between the age of 20 and 40). A full 70% of college students play video games at least…show more content…
EA¡¦s current strategy is to focus on franchise and sports related games that develop loyal followings and repeat sales. They use a unique multi-lingual/multi-platform approach to producing and distributing games around the world. The company¡¦s three main differentiators are their internal sports culture, ability to localize games, and international distribution.
Product strategy: EA¡¦s product strategy is based on the franchise model. 70% of their sales consist of new releases of previous hits. They also seek to be toward the cutting edge of technological innovation. Sales strategy: The company¡¦s current sales strategy is to use their field sales representatives and call centers to sell their games to over 80,000 retailers. Internationally EA has strong sales in Europe with a relatively weak representation in Asia. Their strategy in that arena is to spread the fixed costs of producing a game over as many different sales channels as possible. Marketing Strategy: Sustain leadership status in industry by simultaneously promoting popular EA game titles and releasing localized multi-lingual games on several platforms. EA Sports VP is branding EA Sports as a ¡§sports company that makes games as opposed to a game company that makes sports games.¡¨ EA sets the price of their products from $30-$50. Electronic Arts has set lower prices for their classic titles. HR Strategy: To attract creative
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