Case 6 Electronic ArtsInside Fantasy Sports Using Chapter n content from the Schermerhorn, John R. Jr. ExpioringManagemenr, Seventh Edition, please completely answer the following questions. To earn t'ull points; it is important to utilize content and examples from the text to support your answers. Electronic Arts {EA} is the thirdviorgest and one of the most protable players in the video game industry. Exclusive contracts with professional sports teams have en ohied it to dominate the sports gaming market. Con EA stay in the pole position as gaming shifts to mobile in a crowded and contentious market? Founded in 1932 by William "Trip" Hawkins, an early director of strategy and marketing for Apple Computer, EA gained quick distinction for its detail-oriented sports titles compatible with the Nintendo and Sega platforms. Although EA has also received good reviews for its strategy,Ir and first-person shooter games, it left its heart on the gridiron, diamond, court, or any other playing eld long ago. According to former EA Sports marketing chiet]effrey Karp, EA wanted to he "a sports company that makes games." Ad Revenue In, Ad Revenue Out Word of mouth may still be the most trusted form ofadvertising, and EA has always depended on fans to spread its gaming gospel. But in a highly competitiveand lucrativegaming market, EA knows better than to skimp on brand building: It spends two to three times as much to market and advertise a title as it does developing it. The realism of EA's graphics set it apart from competitors long ago, but the energy and talent used to depict that realism might be wasted if EA games didn't include the one element fans most want to see: their favorite players. However, top athletes aren't cheap, and neither are their virtual depictions. EA spends S [1230+ million annually to license athletes, players' associations, and teams. It's a complex dance: FiFA Soccerfoi' iPad, for example, requires hundreds of different licenses from a total of 22 club leagues, Sill} teams, and 15,l]lJfJ players. Past Glory EA's past devotion to sports games has been a winning asset. But a funny thing happened on the way to the bank: Over the course ofa few short years, the gaming market radically changed. The way games were played in the past is not the way they are played now. Blame the Wii. Dr blame Apple. Dr blame Android and social media platforms. Cir blame the success ofActivision Blizzard 's massively successful Worid of Wdrcm Wail!) that dominated EA's failed Star Wars: The Old Republic, which was intended to compete with Wow for gaming dollars. Successive generations of iPhone and iF'ad improved iDS gaming. and Apple's App Store suddenly became a self-sufficient gaming platform faster than you can say Angry Birds. Android apps are keeping the smart device playing field on the move and increasingly popular. Faeebook also came into its own as a destination for simple but timeswallowing games. This kind of gaming was worlds away from EA's graphicsintense, truetolife realism traditions, and it forced the company to do some serious reckoning on its future. The competition EA faces now is coming on three frontsone of the growing trends in the gaming industry is freetoplay, consolelevel quality, for mobile games. Quality and sophistication equivale nts of EA's best offerings are now enabled for use on mobile devices. And, it's free. . . . The most dangerous competition that EA may be facing comes from a North Carolinabased competitor, Epic Games, which is the gaming studio responsible for the tremendously successful, freeto-play, Fartnlte. Fortnita's tremendous success has been attributed to the fact that the consolelevel quality of this freetoplay game has seamless, cross platforrn playability. The experiences that EA offers as a subscriptionbased paytouse service are now being offered for free by the competition. Numerous competitors in this space have emerged. Some of the most prominent include Critical Force, the studio behind the uber- successful Eritical Ups, Mad Finger Games, whose firstperson shooter Shadow Gun series have been downloaded tens of millions of times, and Garneloft, with a large stable of highend graphics, mobileenabled. free-to-playr games, including the highly-successful Asphalt franchise. Playing for Keeps These competitive clashes have led to management turbulence at EA. Former CEO John Riccitiello stepped down in the face of management failures and tumbling market value. Although historically a leader and an innovator in the gaming space, EA may have become more of a trend follower than a trendsetter under his waning days at the top. When arch rival Activism found market success with its game Call ofum, Riccitiello tried to copy their success with similar products. But consumers showed fatigue with firstperson shooter militarythemed games. EA also failed to remain current with market trends, making a failed foray into online gaming with Slm'ity and not keeping pace with rivals in gaming hardware. Another threat emerged with the announcement that computer code from thirdparty servers could infiltrate some ofthe EA gaming platforms. And then unwanted bugs appeared in Battleeld 4, and the market turned against EA games made for aging console players. Although still a top player, EA faces substantial challenges from competing game companies, the cost ofdoing business, legal issues, dissatised gamers, and growing freetoplay, mobile enabled competition. The next great bet by EA is another futuristic shooter game, Tltanfal'l. It sounds good, but can EA overcome these threats and continue producing games with franchises that brought the company considerable success in the past? Above all, does EA have its operations under control as it makes plans for the growing big thingfree, highquality, mobile enabled games. It looks like EA may have recently found its way back to a winning formula. Star Wars: Battlefront 2, which has been getting rave reviews, may have been the spark that ignited EA's stock to a 22% rise and its second quarter of growth. But, only time will tell if EA has found its way back to the top. Check the News! At a time when details matter, EA finally put the disastrous FlFA 2ft bugpresent at the game's launchinto the rearview mirror. The bug had an almost instantaneous, negative impact on game flow, causing enough chaos to disrupt full seasons of play. In a dramatic development, EA has released a \"h u ge patch" available for PC, and which will be released for Xbox and PlayStation \"at a later date". 1|Illp'rhat does this importantyet delayedtechnical remediation signal for EATJr Does it bode well that FIFA 2G is now playable, or is this a signal of broader underlying issues with the innovative Sportsmedia giant? Case Analysis Questions 1. Discussion [5 Puintsl How can feedf'orward, concurrent, and feedback controls help Electronic Arts meet its quality goals for video games? 2. Discussion [5 Puintsl Which of'the control systems and techniques can be most useful to EA's next round of business decisions, and why? 3. Prhlem Solving {11] Points] Break the video-game production process down into its various components, a starttonish workllow model. Identify for each phase in the process the control standards that could be set so that managers make the process work best overall. 4. Further Research {5 Bonus Points] What is the latest in Electronic Arts's quest to regain its former glory as among the top gaming publishers? How is it doing? W'I'lat's the quality of its games? Is it positioned for future competitive advantage in an industry moving fast into mobile?I Overall, is EA's executive team in control and keeping the company on \"top of its game\":JI