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What's the real secret to EA's success?

According to GamesIndustry.biz the answer is diversification, with the superb progress being made by the company's casual, online, ad-funded and micro-transaction based products offsetting the rising costs in their traditional markets, which are currently eating away at the firm's margins and profits.

This new casual market is performing well for them with strong growth over the last few years and revenue up by 47 per cent to USD 127 million. Although this is still a small fraction of EA's current USD 3 billion turnover, in the coming years it is expected to become far more prominent.

It seems that the age of the one-size-fits-all boxed game is ending fast - and any games company not seriously considering the impact which this diversified future will have on their business models risks being left behind.

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gamesindustry.biz
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Cartesian3D3638d ago

after releasing many big sport titles like(FIFA,NBA,NFS etc ) , and The SIMs .. every body believed that EA going to be one of the bigest GAME companies in history..

but they abuse some subjects like FPS(MOH) , they did well but not enough for EA name.

KA-BAR3638d ago

They buy every license, title, franchise, in sight. So you end up with a company so huge, you have to buy their crap because no one else has the rights.
To top it off, they make a financial killing by selling the same game every year. They just add a few worthless features put it in a different box and wella! a new game folks!
Madden...cough..NASCAR

sajj3163638d ago

Like all businesses, its profitability over ingenuity. At this stage when most companies are transitioning to the next generation, it seems as though EA's business logic is to produce bare minimum and maximize profit through digital revenue. Bare minimum for EA is maximum for other companies and that's both a compliment and a gripe. I'm not going to expect a company like EA to push the new IP envelope since you tend to stick to winning formulas.

The article is right about the all-in-one-box game. It will be a thing of the past. Microtransactions are off-setting costs at EA. Micro-transactions are here for the long-term. Its either that or a bunch of PEPSI adds in Halo 4 ;)

darkvenom3638d ago

I like their games,the reason they're succesful is because they have a nice little monopoly in their sports games.