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rafap ressi Shutte rsto ck.com Electronic Arts | Inside Fantasy Sports EiectronicArts is the third-iargest and one of the most profit- abie players in the video game industry. Exciusive contracts with professionai sports teams have enabieo' it to dominate the sports gaming market. Can EA stay in the poie position as gaming shifts to mobiie in a crowded and contentious marioet? Founded in 1982 by William \"Trip\" Hawkins, an early director of strat- egy and marketing forApple 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 strat- egy and first-person shooter games, it left its heart on the gridiron, diamond, court, or any other playing field long ago. According to for- mer EA Sports marketing chiefJeffrey Karp, EA wanted to be "a sports company that makes games.\" Ad Revenue In, Ad Revenue Out Word of mouth may still be the most trusted form of advertising, 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 to develop 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 have been wasted if EA games didn't include the one element fans most wantto see: their favourite players. However, top athletes aren't cheap, and neither are their virtual depictions. EA spends $100+ million annu- ally to license athletes, players' associations, and teams. It's a complex dance: FiFA Soccer for iPad, for example, requires hundreds of different licenses from a total of 22 club leagues, 500 teams, and 15,000 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 bankover the course of a 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. Or blame Apple. Or blame Android and social media platforms. Or blame the success of Activision Blizzard's mas- sively successful World of Warcraft (WOW) that dominated EA's failed Star Wars: The Old Republic, which was intended to compete with Wow for gaming dollars. Apple's App Store and Android stores became self-sufficient gaming platform destinations for simple but time- swallowing games. With successive generations of improved iOS gam- ing, this industry has become a crowded field. This kind of gaming was worlds away from EA's graphics-intense, true-to-life realism traditions, and it forced the company to do some serious reckoning on its future. The competition EA faces now is coming on three fronts-one of the growing trends in the gaming industry is free-to-play, console-level qual- ity, for mobile games. Quality and sophistication equivalent to 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 Carolina-based competitor, Epic Games, which is the gaming studio responsible for the tremendously successful, free-to-play, Fortnite. Fort- nite's tremendous success has been attributed to the fact that the console- level quality of this free-to-play game has seamless, cross-platform playability. The experiences that EA offers as a subscription-based pay-to-use 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 Critical Ops, Mad Finger Games, whose first-person shooter Shadow Gun series have been downloaded tens of millions of times, and Gameloft, with a large stable of high-end graphic, mobile-enabled, free-to-play 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 trend setter under his waning days at the top. When arch rival Activision found market success with its game Call of Duty, Ricciti- ello tried to copy their success with similar products. But consumers showed fatigue with first-person shooter military-themed games. EA also failed to remain current with market trends, making a failed foray into online gaming with SimCity and not keeping pace with rivals in gaming hardware. Another threat emerged with the announcement that com- puter code from third-party servers could infiltrate some of the EA gam- ing platforms. And then unwanted bugs appeared in Battlefield 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 of doing business, legal issues, dissatisfied gamers, and growing free-to-play, mobile-enabled com- petition. The next great bet by EA is another futuristic shooter game, Titanfall. EA has also launched its first wave of games on Steam in 2020, including more than 25 titles. Games like Dragon Age: Inquisi- tion, Need for Speed Heat, and Unraveled are on the service right now. More games are coming, and EA says that new games it develops for PC will launch on Steam alongside other platforms. It sounds good, but can EA overcome these threats and continue producing games with franchises that brought the company consider- able success in the past? Above all, does EA have its operations under control as it makes plans for the growing big thing-free, high-quality, mobile-enabled games?Step 4: Step 2: The Control Take process Measure necessary actual action performance