Electronic Arts's Plan to Get Your Last Gaming Dollar

A trailer for Battlefield 3, the latest installment of the hit video game franchise, fills the giant screen at a theater used by Electronic Arts (ERTS) to show off its movie-like wares. "You can fly F-18s, Cobra attack choppers, and drive tanks in the same space at the same time!" says EA executive Frank Gibeau over the noise, as realistic-looking soldiers grunt, curse, and shoot their way through a ravaged city. "It's all-out war!" Battlefield 3, due out later this year, is what big-time games aimed at PlayStation 3s (SNE), Xbox 360s (MSFT), and Wiis are supposed to be: engaging, high-production-value spectaculars.

A few minutes later, Gibeau, who oversees EA's nonsports games, enthuses just as much about Battlefield Heroes, which has none of that cinematic stopping power. It's a stripped-down, cartoonish version of the game that EA lets people play for free on a dedicated website. About 7 million people have signed up so far, and many end up spending money on add-ons that spruce up their characters—the same characters they use on their Battlefield console game. During one recent limited-time offer, EA sold 20,000 virtual parrots, at $10 each, that sit on soldiers' shoulders. Over the past year, the company sold $48 million worth of digital goods and services tied to the Battlefield franchise. "In the past, that figure would have been zero dollars," says Gibeau.