Electronic Arts and the Global Video Game Industry Essay -- Video Game

Electronic Arts and the Global Video Game Industrydemographic trends Gaming has become an important part of growing up for lot who were born in the last 25 years. Approximately 3.9 - 4.7% of total demesne population (250 to 300 million people) is very active or a frequent licentiousnesser of video coarse-graineds or at least owns the necessary equipment. This target group spends five or more hours a workweek playing video games. The United States is the largest video game market in the world with ab disclose 50% of the US population (145 Million people) pass 6.5 hours a week on computers and video games. The majority of video game players are preteens, teen get onrs, and young adults (between the date of 20 and 40). A full 70% of college students play video games at least occasionally in a year and 100% had played at some point in their life. The average age of game players in the US in 2003 is 29 years old and hard-core gamers purchase 10-15 new games annually. Indeed, the a verage age of game players is rising be take in gamers continue to play into their adult years, of those over age 50, 17% play video games up from 13% in 2000. The name of females who played console games dramatically rose also to about 40%. It is interesting to note that gamers over the age of 35 like to play games on PCs while those younger than 35 preferred console systems.Socio-cultural many another(prenominal) people think spending many hours in front of both PCs or video game consoles is not a good interest for kids. There are many issues such as health, personality, motivation and especially violence and aggression . Some people believe violence in video games and in other media promotes violent behavior among participants. It can commit to players becoming overweight by decreasing outdoor activity and trim down the capability of eye-sight. The content of violent games could account for changes in the players mood and cause him or her to become more aggressive or emotio nal. Political/ reasonedThe video game business is an interdependent industry. Companies have to pay a customary royalty to the console makers. The console manufacturer have the advocate to authorize all games, limited the number of games, marketing plan and hitherto the quantity of production. The guidelines and restrictions put forth by the Software Rating advance (ESRB) effects the content, storylines and features of vi... ...at encourages creativity but also will pull the political hack on ideas in the early stages so that they can concentrate resources on ventures that are more likely to pay off. Because of this most of the games EA creates are sequels to previously successful franchise brands. Finally, the company is one that prides itself on moral character. EAs Chairman and CEO Lawrence Probst states that EA will not publish games with gratuitous wind and violence. This is an important distinguishing point in an industry that is know for pushing the borderline of dec ency with regard to sex, violence and drugs.SWOT AnalysisStrengthsXDominate instrumentalist in marketXGreat game franchisesXexternal reachXStrong talent pipelineX virtuous leadershipWeaknessesXPoor Relationship with MicrosoftXOverly focussed business (on games)OpportunitiesXMobile marketXCell speech sound marketXIn car equipmentXBranch out into other forms of media (TV, movies)XOnline gamingThreatsXRising production costs.XNew entrants especially in the mobile marketX locker upgradesXIncreasing development costs