Essay about Electronic Arts and the Global Video Game Industry

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Electronic Arts and the Global Video Game Industry


Demographic trends

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
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Video games will move from stand-alone game systems such as consoles or PCs to become online games accessible via many devices. Continuous participation of other gamers around the world will make the games more challenging. Moreover, the high performance of next generation of chips and 3-D graphic animations will attract even more gamers to the market.
Global Markets

The importance of the non-US market is growing every year. However, regulations, cultures, language and other attitudes of each country can differ from the US. For example, people play ¡§soccer¡¨, instead of American football and baseball and different rules exist for the game of chess in Asia and the US. Therefore, the company and industry may need to customize some products and introduce multi-language online games to appeal to the diverse global tastes.
Current Performance
Vision

Chairman Probst¡¦s vision for Electronic Arts is to overcome traditional entertainment companies like Disney, Viacom, and Time Warner as the biggest and best entertainment company in the world.
Goals

Electronic Art¡¦s had two stated goals. The first near term goal is to be the market leader of games played on the current generation of 128 bit consoles. The second near term goal is to generate hundreds of thousands if not millions of users to their online EA Sports product.
Corporate Strategy

EA is focusing on video game…