Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services that could be played by consumers on various platforms. The company platforms include consoles (such as the PlayStation from Sony and Xbox from Microsoft), PCs, mobile phones and tablets. The company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. The company has leveraged franchises historically associated with consoles and traditional PC gaming, such as FIFA, Madden NFL, The Sims, SimCity, and Star Wars, to create mobile and PC free-to-download games that are monetized through a business model in which it sells incremental content and/or features in discrete transactions. The company develops games and services for consoles, PCs, mobile phones and tablets, and it markets and sells its games and services through retail channels and through digital distribution channels. Digitally, the company’s console games, additional content and online services could be purchased through Sony’s PlayStation Network and Microsoft’s Xbox Store. Its PC games and additional content could be downloaded directly through its Origin online platform, as well as through third-party online download stores. The company’s mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple App Store and Google Play. Its massively multi-player online service, Star Wars: The Old Republic, is available both as a free-to-download and as a subscription basis, and certain casual games, such as card, puzzle and word games are available through its Pogo online service. The company’s packaged goods games are sold in mass market retailers (such as Walmart), electronics specialty stores (such as Best Buy) and game software specialty stores (such as GameStop). Its direct sales to GameStop Corp. represented approximately 11 percent of total net revenue in fiscal year 2015. The company sells its games to GameStop Corp. pursuant to various and frequent individual purchase orders. In its games, the company utilizes established brands that it either wholly own (such as Battlefield, Mass Effect, Need for Speed, The Sims and Plants v. Zombies) or license from others (such as FIFA, Madden NFL and Star Wars). The company contracts with external game developers, such as Respawn Entertainment, to develop its games or to publish and distribute their games. The company also partners with third parties to publish its mobile and PC games in certain Asian territories, such as its partnerships with Tencent Holdings Limited and Nexon Co. Ltd. for FIFA Online 3 in China and Korea, respectively. Strategy The company has three core strategies, such players first; commitment to digital; and one EA. Significant Relationships Under the terms of agreements the company has entered into with Sony Computer Entertainment Inc. and its affiliates and with Microsoft Corporation and its affiliates, it is authorized to develop and distribute disc-based and digitally-delivered software products and services compatible with PlayStation 3 and 4 and the Xbox 360 and Xbox One, respectively. The company has agreements to distribute its mobile applications and additional content through distribution partners worldwide, including Apple and Google. Consumers download its applications for their mobile devices from third party-application storefronts. The company has entered into agreements whereby it partners with certain companies, including Tencent Holdings Limited and Nexon Co., Ltd. or their respective affiliates, pursuant to which these companies publish its mobile and PC free-to-download games in certain Asian territories, including China and Korea. Competition The company faces significant competition, primarily from companies that are focused on developing and publishing games that operate on consoles and on PCs, such as Activision Blizzard, Take-Two Interactive and Ubisoft, as well as diversified media companies, such as Warner Bros. and Sony and Microsoft, each of which develops and publishes software for its respective console platform. Seasonality The company has historically experienced the highest percentage of its sales in its third fiscal quarter (year ended March 31, 2016) due to seasonal holiday demand. History Electronic Arts Inc. was founded in 1982. The company was incorporated in California in 1982. In 1991, the company was reincorporated under the laws of Delaware.
electronic arts inc (EA:NASDAQ GS)
209 Redwood Shores Parkway
Redwood City, CA 94065
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