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  • 1. Electronic Arts Q1 2012-13 Talk by Frank Gibeau and Results Slideshttp://www.audiologiks.com
  • 2. EAs Philosophy“Our philosophy is to give players maximumchoice by offering premium subscription servicesalongside a la carte microtransactions. Webelieve this makes our games more acceptableand attracts the largest possible audience. “http://www.audiologiks.com
  • 3. Star Wars – The Old Republic “....subscriptions have been on a declining trajectory and have now slipped below 1million.” The message from players exiting the game is clear -- 40% say they were turnedoff by the monthly subscription, and many indicate they would come back if we offer afree-to-play model.”“Our plan now is to pivot and provide a two-tiered pricing plan, which will make the gamemore accessible and grow the audience. The first tier is a premium playersmembership for Star Wars fans who want everything the game has to offer. For $15 amonth, premium players will receive comprehensive access to the game plus monthlyinfusions of in game currency, which can be used for booths, customization and formoving more quickly through each level.”“The second tier is a free-to-play option which allows consumers to experience the first 50levels at no charge, but with some restrictions on content and advanced player features.Upgrades to the experience can be purchased with in game currency. Players will moveat their own speed and comfort level, and if and when they are ready, they can easilyswitch to the premium tier.““Additionally, we are introducing new pricing next week in North America and Europe. http://www.audiologiks.comBeginning August 6, Star Wars - The Old Republic will retail for $14.99, essentiallyoffering the first month for free. “
  • 4. Battlefield 3“... the disappointing performance of Star Wars was largely offset by thegreat performance of our Battlefield 3 premium service. The core game,Battlefield 3, launched 10 months ago and has shipped over 15 millionunits to date. The premium service introduced in June has sold roughly1.3 million downloads in just two months. Offering both a premiumsubscription and an a la carte option has proven to be enormouslypopular with consumers. “ http://www.audiologiks.com
  • 5. Upcoming Releases in 2012http://www.audiologiks.com
  • 6. Upcoming Releases (Part 2)http://www.audiologiks.com
  • 7. Electronic Arts has 637 games across all platforms ● Has the majority of games on pc and console ● Shows a preference for apple platforms like the iPhone and iPad. ● Handheld gaming to be done on a mobile phone or tablet ● However, bets on Windows, Nintendo 3DS, and Rim are small ● Online and Facebook investments look small relative to the potential market ●http://www.audiologiks.com
  • 8. Categories that EA Focus On Electronic Arts looking to produce large global franchises and their areas of focus would be Action, Sports and Simulations Target audience would be heavily male, due to the above focus, less focus on Strategy and RPG Family, Kids and Puzzle are significant sub-sector categorieshttp://www.audiologiks.com
  • 9. Almost 20% of 600+ Titles Launched in the Last Yearhttp://www.audiologiks.com
  • 10. Partnerships Dominate the List of Franchise Games => Partnering with sports organizations: FIFA, NBA, NHL => Partnering with board game company Hasbro => Partnering with a movie company Harry Potter => Partnering with leading sports figures Madden, Tiger Woodshttp://www.audiologiks.com
  • 11. Electronic Arts Missionhttp://www.audiologiks.com
  • 12. EA Launches Games across Multiple Platformshttp://www.audiologiks.com
  • 13. Strong QoQ Growth in Mobilehttp://www.audiologiks.com
  • 14. Strong Growth in Content Downloadshttp://www.audiologiks.com
  • 15. “Free-to-Play Will Emerge as the Leading Business Model for PC and Mobile Gaming”http://www.audiologiks.com
  • 16. Building Communities Around Gameshttp://www.audiologiks.com
  • 17. Newer Releases Power Digital Growthhttp://www.audiologiks.com
  • 18. PC and Console Still Dominate EA Game Releaseshttp://www.audiologiks.com
  • 19. Games Now Rely on Multiplayer Networking and Social Features“...EAs major releases for Q2, the holiday and Q4. Illstart with Madden NFL 13 because this years gamerepresents a huge leap in innovation. Powered by the all-new Infinity Engine, every impact is more intense and notwo plays ever look the same.Madden 13 also includes Connected Careers mode, anew feature which allows you to create a player or coachin a league with 32 of your friends.The presales for Madden NFL 13 are up 25% versus lastyear, and purchase intent, based on weekly Nielsen http://www.audiologiks.comsurveys, is also up significantly.”
  • 20. “FIFA Franchise Validates Three Fundamental Assumptions in our Digital Strategy”“First, big brands have global appeal and can attractmass audiences in multiple markets.Second, high-quality free-to-play games can generateimpressive revenue and profitability.Third, our digital strategy is not beholden to a singleproduct, platform, geography or business model.” http://www.audiologiks.com
  • 21. Highlights for EA SPORTS“First, watch for NHL 13 in September, a title many critics feel is the best-looking sports game on the market. This years game includes an all-newskating engine and a GM Connected mode that allows you to manage,coach or play online against friends.Second, we are incredibly excited about our new partnership with theUFC. The team is already hard at work on creating a connected universeof fighting games for consoles, PCs, mobile and tablets. In my opinion,this franchise could easily grow to be one of the top three EA SPORTSbrands worldwide.Madden NFL 13 - this years game represents a huge leap in innovation.Powered by the all-new Infinity Engine, every impact is more intense andno two plays ever look the same. Madden 13 also includes ConnectedCareers mode, a new feature which allows you to create a player orcoach in a league with 32 of your friends.” http://www.audiologiks.com
  • 22. Development Differentiating EA in Upcoming Releases“...big titles scheduled to ship this fiscal year include Medal of HonorWarfighter. Built on the Frostbite 2 engine with the direct involvement ofspecial forces combat veterans, the game drops players into real-worldhotspots. The primary competition in this category, Halo and Call ofDuty, are both sci-fi games this year. We believe the authenticity ofMedal of Honor Warfighter will help us extend the positive trend line wehave established with this franchise.Next, Need For Speed Most Wanted is being developed by arenowned Criterion studio in the UK. Most Wanted had a strong debut atE3. It won best racing game and was the only non-shooter nominated forbest online multiplayer. http://www.audiologiks.com
  • 23. Free-to-Play is EAs Fastest- growing Business Model“...some perspective on our fast-growing free-to-play games, aportfolio that includes social network games, as well as browser-based experiences for PCs, consoles and mobile.”“...with year-over-year Free-2-Play revenues that are up 156%, thisalready makes up 17% of our overall revenue in Q1, thecompounded annual growth rate is significantly outpacing theoverall market.”“The Sims Social continues to perform well, averaging roughly 3 million dailyactive users in the past month. The game has generated more than $50 millionin revenue since it launched last summer.“ http://www.audiologiks.com
  • 24. Examples of Recent Free-to-Play GamesSimCity Social launched in June and hit 1.6 million DA used last week.While it is still early, the game is monetizing well and on track to exceedour internal projections.Need For Speed World, a browser-based free-to-play title, has alreadyregistered 15 million players. And Bejeweled Blitz from PopCap wasonce again EAs top-grossing game on IOS. A clear trend line isemerging here. While I look at the quality of these games and therevenue they produce, Im convinced that free-to-play will emerge as theleading business model for PC and mobile gaming. http://www.audiologiks.com