Electronic Arts \ EA

Electronic Arts, Inc. (EA) is an American developer, marketer, publisher and distributor of video games. Founded and incorporated on May 28, 1982 by Trip Hawkins, the company was a pioneer of the early home computer games industry and was notable for promoting the designers and programmers responsible for its games. Electronic Arts is the world's third-largest gaming company by revenue after Nintendo and Activision Blizzard.

Currently, EA develops and publishes games under several labels including EA Sports titles, Madden NFL, FIFA Football/Soccer, NHL, NCAA Football, SSX and NBA Jam. Other EA labels produce established franchises such as Battlefield, Need for Speed, The Sims, Medal of Honor,Command & Conquer, as well as newer franchises such as Dead Space, Mass Effect, Dragon Age, Army of Two and Star Wars: Knights of the Old Republic, produced in partnership with LucasArts. EA also owns and operates major gaming studios, Tiburon in Orlando, EA Canada in Burnaby,BioWare in Edmonton as well as Montreal and DICE in Sweden.

Originally, EA was a home computing game publisher. In the late 1980s, the company began developing games in-house and supported consoles by the early 1990s. EA later grew via acquisition of several successful developers. By the early 2000s, EA had become one of the world's largest third-party publishers. On May 4, 2011, EA reported $3.8 billion in revenues for the fiscal year ending March 2011, and on January 13, 2012, EA announced that it had exceeded $1 billion in digital revenue during the previous calendar year. In a note to employees, EA CEO John Riccitiello called this “an incredibly important milestone” for the company. EA began to move toward direct distribution of digital games and services with the acquisition of the popular online gaming site Pogo.com in 2001. In 2009, EA acquired the London-based social gaming startup Playfish, and in June 2011, EA launched Origin, an online service to sell downloadable games directly to consumers. In July 2011, EA announced that it had acquired PopCap Games, the company behind hits such as Plants vs. Zombies and Bejeweled.

EA continued its shift toward digital goods in 2012, folding its mobile-focused EA Interactive (EAi) division "into other organizations throughout the company, specifically those divisions led by EA Labels president Frank Gibeau, COO Peter Moore, and CTO Rajat Taneja, and EVP of digital Kristian Segerstrale."

EA is currently headquartered in the Redwood Shores neighborhood of Redwood City, California. Following the retirement and departure of Trip Hawkins in 2000, EA decided replace its logo with a new one, and Larry Probst took over the reins.

In 2004, EA made a multimillion dollar donation to fund the development of game production curriculum at the University of Southern California's Interactive Media Division. On February 1, 2006, Electronic Arts announced that it would cut worldwide staff by 5 percent. On June 20, 2006 EA purchased Mythic Entertainment, who are finished making Warhammer Online.

After Sega's ESPN NFL 2K5 successfully grabbed market share away from EA's dominant Madden NFL series during the 2004 holiday season, EA responded by making several large sports licensing deals which include an exclusive agreement with the NFL, and in January 2005, a 15-year deal with ESPN. The ESPN deal gave EA exclusive first rights to all ESPN content for sports simulation games. On April 11, 2005, EA announced a similar, 6-year licensing deal with the Collegiate Licensing Company (CLC) for exclusive rights to college football content.

Much of EA's success, both in terms of sales and with regards to its stock market valuation, is due to its strategy of platform-agnostic development and the creation of strong multi-year franchises. EA was the first publisher to release yearly updates of its sports franchises—Madden, FIFA, NHL, NBA Live, Tiger Woods, etc.—with updated player rosters and small graphical and gameplay tweaks. Recognizing the risk of franchise fatigue among consumers, EA announced in 2006 that it would concentrate more of its effort on creating new original intellectual property.

In September 2006, Nokia and EA announced a partnership in which EA becomes an exclusive major supplier of mobile games to Nokia mobile devices through the Nokia Content Discoverer. In the beginning, Nokia customers were able to download seven EA titles (Tetris, Tetris Mania, The Sims 2, Doom, FIFA 06, Tiger Woods PGA Tour 06 and FIFA Street 2) on the holiday season in 2006. Rick Simonson is the executive vice president and director of Nokia and starting from 2006 is affiliated with John Riccitiello and are partners.

During its period of fastest growth, EA was often criticized for buying smaller development studios primarily for their intellectual property assets, and then producing drastically changed games of their franchises. For example, Origin-produced Ultima VIII: Pagan and Ultima IX: Ascension were developed quickly under EA's ownership, over the protests of Ultima creator Richard Garriott,and these two are widely considered to be subpar compared to the rest of the series.

In early 2008, current CEO John Riccitiello acknowledged that this practice by EA was wrong and that the company now gives acquired studios greater autonomy without "meddling" in their corporate culture.

In 2008, John D. Carmack of id Software said that EA is no longer the "Evil Empire" and decided to go with EA Partners, despite having a poor opinion of the publisher's past record.

Like other EA Partners, such as Harmonix/MTV Games, Carmack stressed that EA Partners deal "isn't really a publishing arrangement. Instead, they really offer a menu of services—Valve takes one set of things, Crytek takes a different set, and we're probably taking a third set".

EA was criticized for shutting down some of its acquired studios after they released poorly performing games (for instance, Origin). Though, in some of the cases, the shutdown was merely a reformation of teams working at different small studios into a single studio. In the past, Magic Carpet 2 was rushed to completion over the objections of designer Peter Molyneux and it shipped during the holiday season with several major bugs. Studios such as Origin and Bullfrog Productions had previously produced games attracting significant fanbases. Many fans also became annoyed that their favorite developers were closed down, but some developers, for example the EALA studio, have stated that they try to carry on the legacy of the old studio (Westwood Studios). Once EA received criticism from labor groups for its dismissals of large groups of employees during the closure of a studio. However, later, it was confirmed that layoffs were not heavily confined to one team or another, countering early rumors that the teams were specifically targeted—countering the implication that the under performance of certain games might have been the catalyst.

EA was once criticized for the acquisition of 19.9 percent of shares of its competitor Ubisoft, a move that many felt would lead to a hostile takeover but has not yet materialized. However, Ubisoft CEO Yves Guillemot later indicated that a merger with EA was a possibility. "The first option for us is to manage our own company and grow it. The second option is to work with the movie industry, and the third is to merge". he said. However in July 2010, EA elected to sell its reduced 15 percent share in Ubisoft That share equated to roughly €94 million (US$122 million).

For 2006, the games review aggregation site Metacritic gives the average of EA games as 72.0 (out of 100); 2.5 points behind Nintendo (74.5) but ahead of the other first-party publishers Microsoft(71.6) and Sony (71.2). The closest third-party publisher is Take-Two Interactive (publishing as 2K Games and Rockstar Games) at 70.3. The remaining top 10 publishers (Sega, THQ,Ubisoft, Activision, Square Enix) all rate in the mid 60s. Since 2005, EA has published eight games that received "Universal Acclaim" (Metacritic score 90 or greater): Battlefield 2, Crysis, Rock Band, FIFA 12, FIFA 13, Mass Effect 2, Mass Effect 3 and Dragon Age: Origins.

EA's aggregate review performance had shown a downward trend in quality over recent years and was expected to affect market shares during competitive seasons. Pacific Crest Securities analyst Evan Wilson had said, "Poor reviews and quality are beginning to tarnish the EA brand. According to our ongoing survey of GameRankings.com aggregated review data, Electronic Arts' overall game quality continues to fall... Although market share has not declined dramatically to date, in years such as 2007, which promises to have tremendous competition, it seems likely if quality does not improve."

EA had also received criticism for developing games that lack innovation vis-à-vis the number of gaming titles produced under the EA brand that show a history of yearly updates, particularly in their sporting franchises. These typically retail as new games at full market price and feature only updated team rosters in addition to incremental changes to game mechanics, the user interface, and graphics. One critique compared EA to companies like Ubisoft and concluded that EA's innovation in new and old IPs "Crawls along at a snail's pace," while even the company's own CEO, John Riccitiello, acknowledged the lack of innovation seen in the industry generally, saying, "We're boring people to death and making games that are harder and harder to play. For the most part, the industry has been rinse-and-repeat. There's been lots of product that looked like last year's product, that looked a lot like the year before." EA has announced that it is turning its attention to creating new game IPs in order to stem this trend, with recently acquired and critically acclaimed studios BioWare and Pandemic would be contributing to this process. In 2012, EA’s games were ranked highest of all large publishers in the industry, according to Metacritic.

In June 2013, EA attracted criticism from users for replacing its Scrabble app on Facebook with a new version that did not retain players' histories and statistics. The new version added functionality including support for other languages and board customization.

In April 2012, The Consumerist awarded EA with the title of "Worst Company in America" along with a ceremonial Golden Poo trophy. The record breaking poll drew in more than 250,000 votes and saw EA beating out such regulars as AT&T and Walmart. The final round of voting pitted EA against Bank of America. EA won with 50,575 votes or 64.03%. This result came in the aftermath of the Mass Effect 3 ending controversy which several commentators viewed as a significant contribution to EA's win in the poll. Other explanations include use of day-one DLCand EA's habit of acquiring smaller developers to squash competition. EA spokesman John Reseburg responded to the poll by saying, "We’re sure that British Petroleum, AIG, Philip Morris, and Halliburton are all relieved they weren't nominated this year. We're going to continue making award-winning games and services played by more than 300 million people worldwide."

In April 2013, EA won The Consumerist's poll for "Worst Company in America" a second time, consecutively, becoming the first company to do so. Games mentioned in the announcement included the critically controversial Mass Effect 3 for its ending, Dead Space 3 for its use of micro transactions, and the more recent SimCity reboot due to its poorly handled launch. Additionally, poor customer support, "nickel and diming", and public dismissiveness of criticisms were also given as explanations for the results of the poll. The Consumerist summarized the results by asking, "When we live in an era marked by massive oil spills, faulty foreclosures by bad banks, and rampant consolidation in the airline and telecom industry, what does it say about EA’s business practices that so many people have — for the second year in a row — come out to hand it the title of Worst Company in America?"

When asked about the poll by VentureBeat, Frank Gibeau, President of EA Labels, responded “we take it seriously, and want to see it change. In the last few months, we have started making changes to the business practices that gamers clearly don’t like.” Gibeau attributes the elimination of online passes, the decision to make The Sims 4 a single-player, offline experience, as well as the unveiling of more new games to the shift in thinking. “The point is we are listening, and we are changing,” Gibeau said.