2Group 4 Challenge

2Group 4 Challenge - Answers to Discussion Questions 1....

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Answers to Discussion Questions 1. What aspects of Electronic Arts business model have helped it succeed in electronic gaming? Electronic Arts has been successful in the video game industry due to its innovative business model. This includes its licenses with branded franchises, ranging from sports to popular movies. These licenses have allowed it to acquire an already installed customer base as fans of these franchises are willing to purchase these games based on entertainment forms they already know. In addition to this it has also launched independent game titles on several game platforms to leverage its dependence on these franchises and maintain success if its licenses franchises were to fail. The launch of online gaming through EA.com has also contributed to its success. It offers gamers free online games, chats, and access to premium games that must be purchased in bundle packages incorporating a CD purchase and a monthly access fee to play games like The Sims Online . This expansion into the online gaming world has allowed it to grow and generate higher profits. 2. What would change if EA agrees to develop software for Microsoft? As mentioned earlier, EA has been successful in the video game industry due to its innovative business strategy, using branded franchises as well as original games to stay on top of the game development industry. Microsoft’s strategy, however, is based on tight control over its games and its customer relationships. According to the case, Microsoft refuses to share subscription revenues with game publishers, which would directly affect EA and their game revenues, since most of the games that EA develops are played online and require subscription. Besides that, EA uses branded franchises in order
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This note was uploaded on 03/31/2008 for the course BUAD 497 taught by Professor Degravel during the Spring '07 term at USC.

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2Group 4 Challenge - Answers to Discussion Questions 1....

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