Innovation and Disruptive Technology .
Evaluating Innovation Killers .
Trip Hawkins founded Electronic Arts, commonly known as "EA," in 1982. EA has established themselves as one of the largest companies in the video games industry, and in May 2005, was the leading provider of video games for consoles and personal computers. Their net revenues had reached a staggering $3 billion dollars, and they released 31 platinum titles on a variety of gaming consoles and genres, in 2005 alone. EA has reached a pinnacle in the video game industry, as some of their largest game franchises have sold more than 5 million units worldwide. Some of these franchises include FIFA Soccer, Need for Speed, Medal of Honor, Madden NFL, Lord of the Rings and The Sims. .
EA faces a rough couple of years as the video game industry slowly shifts to next generation consoles. In order for EA to maintain its dominance in the industry, they face choosing which medium to pursue, mobile, film, television and Internet space. This report will look at the integration into the online space, as it shows the greatest potential for EA to cement its place at the top and gain competitive advantage over its competitors. A thorough analysis of the video game industry, as well as, the current status of EA was conducted in order to gain insight into how EA should approach integration into the online space. Following this, analyses of the importance of disruptive technologies in the industry and innovation traps that EA should be wary of were discussed. Following this, the issues EA face includes, the shift in demographics of gamers, distribution and supply of products, and ineffectiveness of marketing and advertising. The report finishes off with a thorough examination of these issues and solutions that are recommended for them to cement their place in the industry.
EA operates in the highly competitive video game industry, valued at almost $22 billion globally.