EA Case Study PDF

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EA case study...

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Electronic Arts Inside Fantasy Sports

Prepared for Judy Kovacs, Business Management Instructor Northern Alberta Institute of Technology Edmonton, AB

Prepared by ___________ JR Shaw School of Business, MGMT1120 Section OA05 Northern Alberta Institute of Technology Edmonton, AB

April 2, 2021

Table of Contents

Introduction......................................................................................................................................3 Case Study.......................................................................................................................................3 Feedforward Controls..................................................................................................................3 Concurrent Controls.....................................................................................................................4 Feedback Controls........................................................................................................................5 Control Process............................................................................................................................6 Conclusion.......................................................................................................................................7 References........................................................................................................................................8

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Introduction Electronic Arts Inc. (EA) is an American video game company, founded in 1982 by William “Trip” Hawkins. EA develops and publishes a massive portfolio of critically acclaimed titles such as Anthem and Apex Legends, as well as established franchises such as Need for Speed, Battlefield, and Star Wars, including EA Sports titles FIFA, NHL, NFL, and UFC[ CITATION Ele1 \l 4105 ]. EA distributes these titles on various platforms, including PC, Xbox, PlayStation, Nintendo, and mobile. EA has several development studios present across Canada, USA, England, Sweden, and South Korea. As of 2020, Electronic Arts is the sixth largest gaming company in the world, with a revenue of USD $5.5 billion[ CITATION All21 \l 4105 ].

Case Study

Feedforward Controls Feedforward controls, also called preliminary controls, ensure the right directions are set and the right resource inputs are available (Schermerhorn et al., 2017, p. 161). An example of a feedforward control which Electronic Arts could implement is to conduct strategic analyses; these analyses could include SWOT, CREST, and Porter’s Five Forces. In order to improve performance at the leading edge of the gaming industry, it is vital for EA to determine factors which differentiate them from their competitors. Conducting such analyses before workflow operations would allow EA to take into consideration factors such as market trends, competition, and player preferences. 3

An example of a feedforward control taken within the video game industry was regarding loot boxes and microtransactions. In recent years, EA has faced major backlash from the gaming communities for selling loot boxes (randomized, redeemable items in games purchased through in-game or real-world currency) which give competitive advantage to players making in-app purchases [ CITATION Fre19 \l 4105 ]. In other words, gamers who don’t spend real-world currency on games are put at a disadvantage. EA can implement feedforward controls and modify their gameplay to create a fair and free-to-play gaming environment.

Concurrent Controls Concurrent controls, also called steering controls, ensure the right things are being done as part of workflow operations (Schermerhorn et al., 2017, p. 161). An example of a concurrent control which Electronic Arts could implement is constantly monitoring market trends and conducting polls and surveys throughout the workflow operations. In order to improve the process of game development and sales, it is vital for EA to monitor, study, and predict trends in the video games industry. Although highly profitable, the gaming industry is thought to be very volatile in terms of market trends. Many game developers have cancelled games mid-production, simply because market trends change, and certain genres and gameplays become outdated over a short period of time. For example, in 2016, EA announced an Asian market specific online game Titanfall Online, which would compete directly with Nexon’s Counter Strike Online and Activison’s Call of Duty Online. However, due to poor reception during testing and a changing market, the game was cancelled in mid-2018[ CITATION Ash18 \l 4105 ]. Although the game was cancelled post-

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beta, EA might have saved a great deal of time and resources if the thoroughly studied market trends.

Feedback Controls Feedback controls, also called post-action controls, ensure that final results are up to standards (Schermerhorn et al., 2017, p. 161). An example of a feedback control which Electronic Arts could implement is conducting polls and surveys during and post beta testing. In order to achieve immediate information on how the company is performing relative to its competitors, it is vital for EA to maintain a long-term loyalty base with its gamers. Through beta testing (a final round of testing before a game is officially launched), EA can uncover as many bugs and issues as possible by allowing a limited number of gamers to play before the official release. Through these gamers’ inputs, EA can tweak and refine the game as much as possible to create a smooth experience for gamers. For example, when EA launched Battlefield 4 to its Battlefield franchise in 2013, the game’s online-mode was plagued with issues, “to the point where many couldn’t even play the game”[ CITATION Ste \l 4105 ]. Although the game was fixed soon after, and went on to win several awards, the damage to EA’s reputation was irreversible. In order to improve feedback from their gamers, EA could set up in-game polls or surveys which would allow gamers to rate their gaming experience and write about any complaints or issues they have regarding the gameplay. An incentive, such as in-game rewards, often work well to lure more participants to take the survey.

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Control Process The first step of the control process is to establish objectives and standards. This step is the planning stage, wherein performance objectives and standards to measure are set (Schermerhorn et al., 2017, p. 165). Electronic Arts approaches this step with much caution, taking into consideration factors such as market trends, player preferences, and competition. EA dedicates a fair share of time in the planning stage to make their games superior than their competitors. The second step of the control process is to measure actual performance. This step combines output and input standards to carefully document results (Schermerhorn et al., 2017, p. 166). EA is recognized worldwide for its wide portfolio of AAA (higher development and budget) games. Games such as FIFA and Battlefield are distinct examples of the tremendous planning and efforts put in by EA. The third step of the control process is to compare results with objectives and standards. This step weighs the goals set in the first step against the results obtained in the second step (Schermerhorn et al., 2017, p. 167). EA puts its games through several tests before officially releasing the game. These tests include hours of beta testing by developers as well as a limited base of gamers. The fourth and final step of the control process is to take corrective action. This step highlights any gaps found in the third step (the gap between goals and results) and takes necessary actions to resolve them (Schermerhorn et al., 2017, p. 167). EA attempts to fix any gameplay issues before officially launching games; as a drastic measure, EA may also cancel a game if the issues are beyond solvable or if markets change.

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Conclusion Although Electronic Arts is considered a pioneer in the video games industry, especially in the sports genre, there are still several factors which could take the company to greater heights. One of EA’s strengths is that they specialize and differentiate their games from their competition in a unique way, and don’t go directly head-to-head recklessly. Through greater communication with their gamers and a more thorough study of market trends, EA has the opportunities and resources to claim the number one spot in the video games industry.

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References

About EA. (n.d.). Electronic Arts. https://www.ea.com/about Ashcraft, B. (2018, July 9). Titanfall online canceled in South Korea. Kotaku. https://kotaku.com/titanfall-online-cancelled-in-south-korea-1827440902 Freedman, A. E. (2019, August 9). What are loot boxes? Gaming’s big controversy explained. Tom’s Guide. https://www.tomsguide.com/us/what-are-loot-boxesmicrotransactions,news-26161.html Schermerhorn, J., Bachrach, D., & Wright, B. (2017). Management. Wiley. Steinberg, N. (2015, June 3). 10 games that were broken at launch. Goliath. https://www.goliath.com/gaming/10-games-that-were-broken-at-launch/ Top 10 biggest video game companies in the world. (2021, March 23). All Top Everything. https://www.alltopeverything.com/top-10-biggest-video-game-companies/

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