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

Electronic Arts and the Global Video Game IndustryDemographic trends Gaming has travel an important part of growing up for people who were born in the last 25 years. Approximately 3.9 - 4.7% of total world tribe (250 to 300 one million million million people) is very active or a frequent player of video plot of grounds or at least owns the necessary equipment. This target group spends five or more hours a week playing video games. The United States is the largest video game market in the world with about 50% of the US population (145 Million people) spending 6.5 hours a week on computers and video games. The majority of video game players are preteens, teenagers, and young adults (between the age of 20 and 40). A blanket(a) 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 ave rage age of game players is rising because gamers continue to play into their adult years, of those over age 50, 17% play video games up from 13% in 2000. The number of females who played console table games dramatically rose also to about 40%. It is interesting to none that gamers over the age of 35 like to play games on PCs while those young than 35 preferred console systems.Socio-cultural Many people think spending many hours in front of either PCs or video game consoles is non a good hobby for kids. There are many issues such as health, personality, motivation and especially violence and aggression . Some people cerebrate violence in video games and in other media promotes violent behavior among participants. It can contribute to players becoming overweight by decreasing outdoor employment and reducing 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 emotional. Politica l/ juralThe video game business is an interdependent industry. Companies have to pay a customary royalty to the console makers. The console manufacturer have the power to crystallize all games, limited the number of games, marketing plan and even the quantity of production. The guidelines and restrictions put forth by the Software Rating Board (ESRB) effects the content, storylines and features of vi... ...at encourages creativity but also will pull the plug on ideas in the early stages so that they can concentrate resources on ventures that are more apt(predicate) 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 sex and violence. This is an important distinguishing point in an industry that is know for pushing the edge of decency with regard to sex, violence an d drugs.SWOT AnalysisStrengthsXDominate Player in marketXGreat game franchisesXInternational reachXStrong talent pipelineXMoral leadershipWeaknessesXPoor Relationship with MicrosoftXOverly focused business (on games)OpportunitiesXMobile marketXCell squall marketXIn car equipmentXBranch out into other forms of media (TV, movies)XOnline gamingThreatsXRising production costs.X novel entrants especially in the mobile marketXConsole upgradesXIncreasing development costs