Electronic Arts: Strategic Differentiation in the Global Video Gaming Industry

ABSTRACT:  Electronic Arts Incorporated (EA) is a leading global developer of video game software with FY2018 revenues in excess of $5B. And although the organization has demonstrated innovative leadership in the industry for many years and has an established portfolio of “hit” game titles, industry trends have created an increasingly competitive environment. Digital game distribution, for example, has dramatically reduced the cost of product delivery, but has also negated a previous barrier to entry for new competitors. In a $36B industry that has been completely reshaped by digital content and distribution, EA seeks to better engage and retain players via digital capabilities. This case study analyzes EA’s differentiated competitive strategy founded on three pillars: Player-First, Commitment to Digital, and One EA. Each of these strategic focuses has a direct connection to trends in the transforming video game industry, as the company seeks to expand its player base across platforms, geographies, and business models. Together, these highlight the path for the company to operate more efficiently, create more engaging products and services, and develop increased customer loyalty towards EA games.

KEYWORDS: Electronic Arts Inc., digital content, video games, strategy