Document Type

Closed Project

Publication Date

Summer 2001


Dilek Cetindamar

Course Title

Economics of Technology Innovation

Course Number

EMGT 510/610


Electronic Arts (Firm) -- Management, Internet games industry, Technology -- Management, Engineering -- Management, Electronic Arts (Firm) -- -- Strategic planning


Electronic Arts Company is the dominant market leader of interactive entertainment software. As the leading independent publisher of video and computer games, Electronic Arts continues to take action to capitalize technology breakthrough and to grow revenue and profit. On the other hand, EA has another significant problem that can threat within its segment market. The problem is online gaming via internet. The important key within online gaming is the ability of players competes against others players. Another key advantage upon online gaming, players are not just playing, chat groups and others forum keep users online for longer periods that make online gam~ng sites more attractive to users and advertisers. As a result, the online gaming industry grows dramatically in the future entertainment software industry. EA knows that online gaming will increase rapidly over the next few years. EA took action with development of its initial online product Ultima Online in August 1997 and continue to merge with American Online in the second half 2000, but EA realizes that effort is not enough for becoming leader online game site, so EA should provide new strategies to compete with online gaming.


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