GSBA 556 Business Development in the Networked Digital Industry Electronic Arts Mobile.

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Presentation transcript:

GSBA 556 Business Development in the Networked Digital Industry Electronic Arts Mobile

Fiscal Year 2007 Revenue Breakdown*: Fiscal 2007 NI Change*: $236M->$76M * Source: Electronics Arts (ERTS) 2007 Annual Reports (Form 10-K) 5 EA Mobile 2007 Update

Game Publishers Console Makers Content Provider Game Developer Middleware Consumer Retailer Broadband Provider Ecosystem: Video Gaming

Ecosystem: Mobile Phone Gaming Cell Phone Vendors Mobile Carriers Content Provider Game Developer Consumer Game Publisher

VISOR Value Proposition 1.Provide entertainment anytime and anywhere 2.Could be easily purchase through wireless environment 3.Could allow multiple users interaction Interface 1.UI is inconvenient (small screen, small pad, bad audio output, bad computation ability) Revenue 1.Game downloading 2.Service subscription 3.In-game Advertisement Service Platform 1.Different Cell Phone OS 2.Different Carrier and wireless Protocol Organizing Model 1.Game developer studio 2.Game publisher 3.Service Carrier Cost 1.Game developer studio 2.Carrier 3.Server maintenance “The problem is: the input and the device is still too slow, even on simple games. The reaction time of the little four-way controller and your character...the lag is still enough to where you couldn't play the game very well.” - Richard Garriott (a.k.a. Lord British, Creator of Ultima Online)

Strategic Issues & Choices 1)Biz Model / Revenue Sources –Selling Game Titles Heterogeneity – Supporting multiple platforms is crucial –Harvesting Subscription Fees? Mobile Internet Connectivity: Ubiquitous? –In-Game Advertisement? 2)What strategy can EA mobile implement? 3)Alliance and Partnerships –Brand Phone Vendors –Carriers –ODM and 3 rd -party Game Developers

Mobile Phone Gaming Value Chain 3 rd -party Game Develop ers Chip Vendor s ODMs Phone Vendor s Carrier s Users Advertis ers Create Mkt-Pull System Integration Co- develo pment/ Co-Mkt Channe l/Server Co- location

Recommendations Preloading Game Downloaders in new phones –Working closely with Brand phone manufacturers Revising Service Platform User Interfaces –Streamlining purchasing process Supporting more Platforms –Incorporating cross-platform technology (J2ME etc.)