presentationeasports-150702141304-lva1-app6892.pdf

EA sports details

2. Agenda
1.The Company: EA Sports
2.Market Structure
3.Value Chain
4.Management Strategies

3. Agenda
1.The Company: EA Sports
2.Market Structure
3.Value Chain
4.Management Strategies

4. 1. The Company -Facts
EA foundedin 1982 byTrip Hawkins
EA brandwhichcreatessportsvideogames
Foundedin 1991 tomimicreal lifesportnetworks-> EASN
Changednamein 1993 -> EA SPORTS
Hawkins left, Larry Probst came
1993 “MaddenNFL ’94“ firstgametointroduceEA Sports‘ famous
motto:
„It‘sin thegame!“

5. 1. The Company -Locations
HQ in Redwood ShoresCalifornia; centerofglobal publishing,
marketing& HR
Los Angeles: global HR forEA social& mobile publishing
Orlando: EA Triburon; industry-leadingdeveloperofMaddenNFL,
NCAA Football, PGA Tour Golf, NBA Live
Salt Lake City; HeadgateStudios, developpedPGA Tour Golf Tiger
Woods in 2000

6. 1. The Company -Locations
Vancouver, CA: developsFIFA, NHL Hockey & UFC
Bucharest, Romania: FIFA
Seoul, South Korea: focusedon online gamesdevelopment;
partneredwithNEOWIZ tobring FIFA toKoreanonline gamers

7. 1. The Company -Games
Nascar, F1, Grand Slam Tennis, Fight Night, Cricket, Rugby, MVP Baseball,
NCAA Football, FIFA Manager, EA Sports Active

8. Agenda
1.The Company: EA Sports
2.Market Structure
3.Value Chain
4.Management Strategies

9. 2. Market Structure
59% ofAmericans playvideogames
The averagegameplayeris31 yearsold
62% ofgamersplaygameswithothers(in personoronline)
24% ofonline gamesplayedaresportgames

10. 2. Market Structure
52%
48%
Gender of game players
malefemale

11. 2. Market Structure
Best sellingvideogamesgenres
20%
Shooter
31,9%
Action
12,7%
Sport

12. 2. Market Structure
Top sellingvideogamesin 2013
Grand Theft
Auto V
Call ofDuty:
Ghosts Madden
NFL

13. 2. Market Structure-Competitors
W2K ->UFC
NBA2K ->NBA
NHL2K ->NHL
Top Spin ->Grand Slam Tennis

14. 2. Market Structure-Competitors
Pro EvoSoccer->FIFA

15. 2. Market Structure–Entrancebarriers
Back in the„Playstastion/Playstation 2 days“: itcostmillionsto
developa game
=> sufficientbarriertokeepthehordesout, but low
enoughtomakerisksacceptable
Nowadays: barrierseithertohigh ortoolow
=> tomakea hityouneeda min. of100$ million
=> online gameseasilyandcheapmade
Toomanytitlesout today, difficulttostand out

16. Agenda
1.The Company: EA Sports
2.Market Structure
3.Value Chain
4.Management Strategies

17. 3. Value Chain
Investment
Design &
Creativity
Production
& Tools
Distribution
Hardware
End-User

18. 3. Value Chain
Investment
Design &
Creativity
Production
& Tools
Distribution
Hardware
End-User
EA investsin developinggames
EA Sports workswithlicenses

19. 3. Value Chain
Includesdevelopers, designersandartists
In-house developmentteams
Regardlessofthetype ofgamebeingcreatedortheplatformitis
beingdesignedfor
Investment
Design &
Creativity
Production
& Tools
Distribution
Hardware
End-User

20. 3. Value Chain
Investment
Design &
Creativity
Production
& Tools
Distribution
Hardware
End-User
Hardware/Software
Different tools, dependingon thetype ofgameandtype ofplatformthe
gameisbeingproducedfor
Game engine: ownorlicence
EA SPORTS IGNITE: gamesbecomealive

21. 3. Value Chain
Investment
Design &
Creativity
Production
& Tools
Distribution
Hardware
End-User
Publishing andmarketinggamesforretailandonline sales
Shifttoonline business-> moresalesbeingmadedigitally

22. 3. Value Chain
Investment
Design &
Creativity
Production
& Tools
Distribution
Hardware
End-User
Details oftheplatform: console, online, mobile
Somegamesproducedformultiple platforms
Wider customerrange
„Hardware-Companies“ mightpayextra

23. 3. Value Chain
Investment
Design &
Creativity
Production
& Tools
Distribution
Hardware
End-User
Includesanyonewhoisinterestedin purchasingthegame
= thegamer/user
Shifttoonline gaminghasmadeiteasiertogetaccesstothe
games, thereforemorepeopleareplaying

24. 3. Value Chain
EA SPORTS oneofthebigplayers
Value chainmorecompressed
Investment layer: noneedtofind investors, sinceEA SPORTS
investsitself
Productionlayer: in-house production
Publishing layer: noneedtomarketgamestoa producer

25. Agenda
1.The Company: EA Sports
2.Market Structure
3.Value Chain
4.Management Strategies

26. 4. Management Strategies
DEALS WITH MAJOR SPORTS LEAGUES
Deals withNFL, FIFA, …
Designinggamesusingtheplayers, stadiums& uniforms
Givesauthenticitytotheplayingexperience

27. 4. Management Strategies
CONTRACT WITH ESPN
15-year contract(signed2005, until2020)
ExclusiverighttouseESPN brandforat least 9 sports(baseball,
basketball, football,…)
Someofthemoneypaidforcommercialspromotinggameson
ESPN channels

28. 4. Management Strategies
MOBILE GAMES FOR FREE
Growinginterestin online/mobile games
Almostall EA SPORTS mobile games(exceptMMA iOS/ NBA
Android) forfree
First: generatinggamers
Lessbarriers, noneeddo buyanyconsole
Later: salesthroughin-game purchases