Electronic Arts Inc. is undoubtedly one of the leaders on the market of video games development. Throughout the decades of its existence, the company has experienced both financially beneficial advancements and stock value declines. Overall, in order to present and analyze EA’s performance, it would be the most reasonable to take into account the company’s performance since 1982, while also focusing on the most recent decade due to its significant impact on the company’s position on the market.
First of all, it is critical to acknowledge that since the beginning of its existence, EA has aimed its interest in the cooperation with independent game creators. In such a way, the company was able to reduce production costs as well as ensure the quality of the final product and the public’s interest in it. The majority of the video games produced in such a way has become popular among the clients and financially profitable. Nevertheless, some of the recent releases have been incredibly unsuccessful, which caused the EA’s position on the market to decline. The primary reason for such a downturn is related to the company’s decision to purchase smaller organizations instead of recruiting their artists. As a result, the highly-anticipated presentation of Battlefield 5 has resulted in a major loss of revenue for the EA.
In order to conclude, it is critical to acknowledge that Electronic Arts is a company with an extensive history in the market of video gaming. The image of recruiting independent developers was the primary reason for the company’s growth in previous decades. With the decision to purchase smaller companies, the EA has consequently faced a decline in product quality, customer satisfaction, and financial profit.