Company Presentation on Electronic Arts

1. Electronic Arts
Michael Rygiel

2. Problem
● Relaxation from real world
● Video games are entertaining
● Competitive

3. Product
● Video games

4. Financials
● $4.845 billion revenue (2017)
● Top 10 video game company (revenue)
● Third party distributor and publisher

5. Business Model
● Full game downloads
● Microtransactions
● Mergers and Acquisitions

6. Timeline
May 27, 1982
Electronic Arts
founded by Trip
Hawkins
2012 - 2013
Voted Worst
Company in America
twice in a row
1991
EA Sports division
founded
Nov. 2004 - Oct. 2006
Acquisition of
DICE
Nov. 2017
Acquisition of
Respawn
Entertainment
May 2013
EA and Disney sign
exclusive deal for
Star Wars

7. Worst Company in America?
● Voted Worst Company in America by Consumerist (2012, 2013)
● Reason: Microtransactions, Acquisition Strategy
● Result: CEO steps down

8. Microtransactions
● $1.6 billion revenue in past year
● $800 million from Ultimate Team
● Advantages and cosmetics

9. Controversy - Microtransactions
● Compared to gambling
● Large scale controversy from Star Wars
● Result: Pulled loot boxes, lawmakers draft bills

10. Competition

12. Prediction
Electronic Arts will succeed in the future

13. Citations
● Problem
○ Why Video Games?
■ http://www.irishhealth.com/article.html?id=19577
○ Business insider predicts the rise of e sports to be about $1.5 billion industry by 2020:
■ http://www.businessinsider.com/esports-popularity-revenue-forecast-chart-2017-3
○ Growth hit about 660 mil:
■ https://newzoo.com/news/esports-quarterly-update-global-esports-market-will-generate-660-million-2017-34-yoy-growth/
● Product
○ List of ea games:
■ https://en.wikipedia.org/wiki/List_of_Electronic_Arts_games
● Financials
○ Total market for video games is about 100 bil:
■ https://newzoo.com/insights/articles/the-global-games-market-will-reach-108-9-billion-in-2017-with-mobile-taking-42/
○ Metacritic ranks EA as #1 for ratings of games for 2016 releases:
■ http://www.metacritic.com/feature/game-publisher-rankings-for-2016-releases
● Business Model
○ Graph
■ https://venturebeat.com/2016/11/01/ea-63-of-q2s-898-million-in-game-revenues-were-digital/
● Timeline
○ DICE:
■ https://www.gamespot.com/articles/ea-rolls-dice-for-23-million/1100-6159171/
○ Star Wars
■ https://www.polygon.com/2013/5/6/4306022/ea-disney-star-wars-games-exclusive-rights

14. Citations Pt. 2
● Worst Company in America
○ https://venturebeat.com/2015/07/10/electronic-arts-stock-price-is-at-an-all-time-high/
○ https://consumerist.com/2013/04/09/ea-makes-worst-company-in-america-history-wins-title-for-second-year-in-a-row/
○ https://www.forbes.com/sites/insertcoin/2013/04/09/ea-voted-worst-company-in-america-again/#7e7fd58f7aeb
● Microtransactions
○ Ultimate Team:
■ http://www.gamesindustry.biz/articles/2017-03-01-eas-ultimate-team-now-worth-USD800-million-annually
● Controversy - Microtransactions
○ Downvoted comment:
■ https://www.reddit.com/r/StarWarsBattlefront/comments/7cff0b/seriously_i_paid_80_to_have_vader_locked/dppum98/
○ Star Wars controversy
■ http://variety.com/2017/digital/news/star-wars-video-game-controversy-microtransaction-loot-box-1202621913/
○ Lawmaker drafts bills
■ http://fortune.com/2017/12/09/lawmaker-working-to-ban-sale-of-games-with-lootboxes-to-minors/
● Competition
○ http://financials.morningstar.com/competitors/industry-peer.action?t=EA
● Competition Revenue Graph
○ https://newzoo.com/insights/articles/supercell-acquisition-tencent-set-to-take-13-percent-of-the-games-market/