Entertainment Arts Positioning for the Next Big Wave in Video Games
Electronic Arts
“Video Game companies are business trend leaders and creators” says Ken Burridge the Editor-in-Chief of GameMaster.com.
If one follows the money it could very well lead you to the future of video games and the video game industry. Game related technology has historically been credited with many advancements and innovations such as sound and graphic cards, 3D graphic accelerators, and the acceptance and deployment of wide-spread use of CD and DVD drives.
So it pays…to pay attention to what the big boyz in the industry are doing. Currently even though Electronic Arts, the world’s second-largest video-game publisher has closed studios, sacked 1,500 employees, and moved moved jobs to lower-cost regions in the last year, due to the global economic crisis (GEC). However, during that same time period the GEC has not stopped EA from spending approximately $1.23 billion on R&D, or 34 percent of their revenue, mostly to develop new online gaming services. Entertainment Arts seems to be making a move away from game consoles towards favoring web-based video games.
“The shear amount of R&D funds being spent speaks volumes of where the Redwood City, California game company believes they are going to be making their money in the future. The video game industry is being transformed by the internet not unlike the changes we have seen in the music, TV/Film and newspaper industries and Electronic Arts is clearly getting themselves into position to catch the next big wave.”, says Mr. Burridge.
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