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 game consoles (such as the PlayStation 3 and PlayStation 4 from Sony, and Xbox 360 and Xbox One from Microsoft), PCs, mobile phones, and tablets. In the company’s games, it utilizes brands that the company either wholly owns (such as Battlefield, Dragon Age, The Sims and Plants v. Zombies) or licenses from others (FIFA, Madden NFL, and Star Wars). Operations The company operates development studios in North America, Europe, Asia, and Australia. It also engages third parties to assist with the development of its games and services at their own development and production studios. Internationally, the company conducts business through its international headquarters in Switzerland and has wholly-owned subsidiaries throughout the world, including offices in Europe, Australia, Asia and Latin America. Divisions The company’s studios and development teams are organized around three divisions: EA Studios, EA Mobile, and Maxis. Each division operates worldwide with support from its Global Publishing and Marketing organizations, as well as its Digital Platform team. EA Studios This division is home to the company’s studios and development teams, and is responsible for developing games and related content and services across a range of game categories. The company’s franchises include FIFA, Madden NFL, Need for Speed, Battlefield, Mass Effect, Star Wars and Dragon Age. The company’s primary studios within the EA Studios organization are located in the United States, Canada, and Sweden. The company also contracts with external game developers for development services or to establish publishing and distribution relationships, such as the one that the company has with Respawn Entertainment for Titanfall. EA Mobile This division develops and publishes interactive games for play on mobile phones and tablets, as well as certain casual games for the PC. This division’s brand portfolio includes wholly owned properties, such as Plants vs. Zombies, Real Racing and Bejeweled, as well as licensed intellectual properties, such as Tetris and The Simpsons. This division also manages the company’s Pogo online service, through which it offers casual games, such as card, puzzle and word games on www.pogo.com, as well as on other platforms. Pogo generates revenue through paid subscriptions, Internet-based advertising and sales of digital content. This division has studios located in the United States, Canada, China, Australia, Finland, and India. Certain mobile games, such as those related to the company’s EA SPORTS franchises, are developed primarily by this division. Maxis This division focuses on creating compelling games and related content and services that engage player creativity. This division’s portfolio includes the wholly-owned franchises, The Sims and SimCity. Maxis games are primarily developed at studios in the United States. Global Publishing and Marketing The company’s Global Publishing and Marketing organizations are responsible for the distribution, sales, and marketing of its products and services, including operations, and manufacturing functions, as well as the company’s global media advertising sales business and customer support teams. Mobile game publishing is overseen by the company’s EA Mobile organization. Digital Platform The company’s Digital Platform team is responsible for creating and maintaining a technology foundation that improves the company’s ability to deliver gameplay services and facilitate transactions across platforms for all of its games. Relationships Channel Partners Sony Computer Entertainment Inc.: Under the terms of agreements that the company has entered into with Sony Computer Entertainment Inc. and its affiliates, the company is authorized to develop and distribute disc-based and digitally-delivered software products and services compatible with PlayStation 3 and 4. Microsoft Corporation: Under the terms of agreements that the company has entered into with Microsoft Corporation and its affiliates, the company is authorized to develop and distribute disc-based and digitally-delivered software products and services compatible with Xbox 360 and Xbox One. Apple, Google, and Other App Stores: The company has agreements to distribute its mobile applications through distribution partners worldwide, including Apple and Google. Consumers download the company’s applications for their mobile devices from third party-application storefronts. Publishing Partners in Asia: The company has 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 the company’s mobile and PC free-to-download games in certain Asian territories, including China and Korea. Retailers In North America and Europe, the company’s major markets, the company sells packaged goods products to retailers, including mass market retailers (such as Walmart), electronics specialty stores (such as Best Buy) or game software specialty stores (such as GameStop Corp.). Seasonality The company’s business is highly seasonal with the highest levels of consumer demand and a significant percentage of its sales occurring in the holiday season quarter ending in December and a seasonal low in sales volume in the quarter ending in June. Competition Competition in Games for Console Devices and PCs: The company competes directly with Sony Computer Entertainment Inc. and Microsoft Corporation. It also competes with Activision Blizzard, Take-Two Interactive, and Ubisoft. Competition in PC Free-to-Download Online Gaming Services: The company’s competitors in this market include Riot, Tencent Holdings Limited, Valve, Activision Blizzard, and Nexon Co., Ltd. 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
(ERT:German Stock Exchange)
209 Redwood Shores Parkway
Redwood City, CA 94065
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