Electronic_Arts
TEACHING NOTE FOR
ELECTRONIC ARTS IN 2002
Electronic Arts is a highly successful creator of video games for consoles and PCs. The company also creates content for online gaming. EA occupies a unique place in the information processing industry. The company must have the skills of a Hollywood studio in order to create compelling content while at the same time negotiating technological change and uncertainty associated with the platforms (e.g., consoles, PC, Internet) used to operate and distribute the games. The case gives students the opportunity to evaluate the strategic challenges associated with operating at the nexus of information processing and entertainment industries.
This case is often used in conjunction with Electronic Arts in 1995, SM-24A. While Electronic Arts in 2002 can be used by itself, use of the two cases together gives a good longitudinal perspective on the company, industry and technology. Instructors who use Electronic Arts in 2002 by itself should not use Question 1 below. (NB: The case Electronic Arts in 1999, SM-24B is largely superceded by the Electronic Arts in 2002. The latter case covers the same themes and issues as the 1999 case.)
In terms of the strategic dynamics framework, this case illustrates the challenges of trying to extend P-controlled changes into industries that are converging (or colliding). It also how EA is trying to transform itself, and realign its actions with strategy, as to take advantage of opportunities created by industry convergence.
Preparation Questions:
1. By 1995, how successful has EA been? What has been their strategy? What strategic challenges do they face in 1995?
2. How should EA think about the platform development decisions it faces?
3. How has the Internet affected the video game industry? Why?
4. In 2002, what should EA’s corporate strategy be for the next 5 years? Why? How should it execute this strategy?
Analysis:
1. By 1995, how successful has EA
ELECTRONIC ARTS IN 2002
Electronic Arts is a highly successful creator of video games for consoles and PCs. The company also creates content for online gaming. EA occupies a unique place in the information processing industry. The company must have the skills of a Hollywood studio in order to create compelling content while at the same time negotiating technological change and uncertainty associated with the platforms (e.g., consoles, PC, Internet) used to operate and distribute the games. The case gives students the opportunity to evaluate the strategic challenges associated with operating at the nexus of information processing and entertainment industries.
This case is often used in conjunction with Electronic Arts in 1995, SM-24A. While Electronic Arts in 2002 can be used by itself, use of the two cases together gives a good longitudinal perspective on the company, industry and technology. Instructors who use Electronic Arts in 2002 by itself should not use Question 1 below. (NB: The case Electronic Arts in 1999, SM-24B is largely superceded by the Electronic Arts in 2002. The latter case covers the same themes and issues as the 1999 case.)
In terms of the strategic dynamics framework, this case illustrates the challenges of trying to extend P-controlled changes into industries that are converging (or colliding). It also how EA is trying to transform itself, and realign its actions with strategy, as to take advantage of opportunities created by industry convergence.
Preparation Questions:
1. By 1995, how successful has EA been? What has been their strategy? What strategic challenges do they face in 1995?
2. How should EA think about the platform development decisions it faces?
3. How has the Internet affected the video game industry? Why?
4. In 2002, what should EA’s corporate strategy be for the next 5 years? Why? How should it execute this strategy?
Analysis:
1. By 1995, how successful has EA