EA either wholly owns its gaming titles – like Battlefield and The Sims – or licenses it from others – like Fifa and Star Wars. This is a good business model to have because while Disney can take away EA’s exclusive publishing rights to publish the Star War titles, no one can take Battlefield and The Sims away from EA. In addition, Its portfolio of titles across genres give it different addressable markets to tap into as well. For example, soccer fans through Fifa, and sci-fi fans via the Star Wars franchise.
Leading games publisher has a track record of creating immensely-popular titles such as Fifa, The Sims and Command and Conquer. Its new business model emphasises higher margins and more predictable growth in revenue.
SINGAPORE (Jan 23): Computer gamers must know Electronic Arts (EA), investors should appreciate EA. The Nasdaq-listed company develops, publishes, and distributes games and sells related online services. Market intelligence projects a 12% CAGR in the number of gamers over the next five years, with the fastest growth from North America, which contributes 40% of EA’s revenue in the last financial year.
