Currently Electronic Arts (EA) is the leading game developer, publisher and marketer. It developed games for various devices, such as consoles (Sony PS, Microsoft Xbox and Nintendo Wii), wireless phones and handheld devices (Nintendo’s Game Boy and Sony PSP), personal computers and Websites. Its goal is to become the biggest and best entertainment company in the world, that’s what EA’s chairman and CEO, Lawrence Probst is aiming. But this is not an easy task as a few years before, the gaming industry had suffered a declining profit due to slower-than-expected transition to next-generation video game platforms and partly because of significantly higher costs to develop new games. On the other hand the video game industry is expected to increase significantly. This is mostly due to the enthusiasm shown by game users to purchase Sony Playstation 3 (PS3), Microsoft’s Xbox 360, Nintendo’s Wii and also other new game consoles.
In order to recommend a strategy which will increase EA’s profitability, shown below is the SWOT analysis and Macroenvironment Analysis: StrengthOpportunity
-Leading independent developer, publisher and marketer of video games with the biggest market share. -Developed games for various types of game console
-Able to distribute and sell all over the world-High speed internet connections can have an impact to how interactivity between users can be enhanced and also the ease of purchasing the games online will decrease production and distribution cost -Growth of game players. Now, more adults continue to play games. This in turn makes the target market doubled. -Broader game content.
-Better quality of graphics and play.
-Multiple uses of games console which include TV, DVD player, radio, internet, stream video and other capabilities -Easier to develop games based on Movie or certain type of sports. The creative process is only in making the game more interactive and not in developing the new characters and...