Future of Electronic Arts | Quantumrun

Future of Electronic Arts

Electronic Arts Inc. (EA) is a US video game company headquartered in Redwood City, California. Established and incorporated by Trip Hawkins on May 28, 1982, the company was a pioneer of the early home computer games industry and was famous for promoting the programmers and designers responsible for its games. As of 2014, Electronic Arts was the 4th-largest gaming company in the globe measured by revenue following Tencent, Sony, and Microsoft. The company sparked controversies over its advertising efforts and purchase of other studios.

Home Country: 
United States
Industry: 
Video Game Industry
Industry vulnerability to disruption: 

<p>Belonging to the entertainment sector means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:</p>

<p>*First off, the cultural shift among Millennials and Gen Zs toward experiences over material goods will make entertainment consumption an increasingly desirable activity.<br />
*By the late 2020s, virtual reality (VR) and augmented reality (AR) will reach a level of market penetration significant enough for entertainment companies to start shifting sizeable resources into content production for these platforms.<br />
*By the late 2030s, the widespread popularity of VR and AR will shift the public’s media consumption tastes away from voyeuristic storytelling (traditional movies and television shows) to participatory forms of storytelling that immerses the content consumer by allowing them to influence the content they experience—kind of like being an actor in the movie you’re watching.<br />
*The shrinking cost and versatility of artificial intelligence systems, combined with the increasing computational capacity of future quantum computing systems, will drive down the cost of producing higher budget looking content, especially for future VR and AR platforms.<br />
*All entertainment media (especially video games) will eventually be delivered primarily through subscription based platforms.</p>

Total patents held: 
63
Number of patents field last year: 
1
Ranking List: 
360
Ranking List: 
2017 Quantumrun Global 1000
241
Ranking List: 
2017 Quantumrun US 500
36
Ranking List: 
2017 Quantumrun Silicon Valley 100
Market Revenue Country: 
Market country 
North America
Revenue from country 
0.44
Market country 
Other
Revenue from country 
0.56
Prod/Serv name revenue: 
Prod/Serv name: 
Offerings for Xbox one, Playstation 4
Prod/Serv revenue: 
2183000000
Prod/Serv name: 
Offerings for Xbox 360, Playstation 3
Prod/Serv revenue: 
752000000
Prod/Serv name: 
Offerings for PC/Browser
Prod/Serv revenue: 
814000000
Founded: 
1982
Company Name: 
Electronic Arts
Sector: 
Revenue: 
4845000000
3y average revenue: 
4585333333
Operating expenses: 
2323000000
3y average expenses: 
2201666667
Company profile data note: 
All company data collected from its 2016 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page.
Global employee count: 
8800
Domestic employee count: 
3300
Number of domestic locations: 
6
Funds in reserve: 
2493000000
Investment into R&D: 
1205000000
create term: 
#360 | 2017 Quantumrun Global 1000
#241 | 2017 Quantumrun US 500
#36 | 2017 Quantumrun Silicon Valley 100

Electronic Arts Inc. (EA) is a US video game company headquartered in Redwood City, California. Established and incorporated by Trip Hawkins on May 28, 1982, the company was a pioneer of the early home computer games industry and was famous for promoting the programmers and designers responsible for its games. As of 2014, Electronic Arts was the 4th-largest gaming company in the globe measured by revenue following Tencent, Sony, and Microsoft. The company sparked controversies over its advertising efforts and purchase of other studios.

Home country:
United States
Sector:
Technology
Industry:
Video Game Industry
Website:
Founded:
1982
Global employee count:
8,800
Domestic employee count:
3,300

Financial Health

Revenue
$4,845,000,000 USD
3y average revenue
$4,585,333,333 USD
Operating expenses
$2,323,000,000 USD
3y average expenses
$2,201,666,667 USD
Funds in reserve
$2,493,000,000 USD
#1 Market country
North America
% of revenue from country #1
0.44%
#2 Market country
Other
% of revenue from country #2
0.56%

Asset Performance

#1 Product/Service/Dept. name
Offerings for Xbox one, Playstation 4
#1 Product/Service revenue
$2,183,000,000 USD
#2 Product/Service/Dept. name
Offerings for Xbox 360, Playstation 3
#2 Product/Service revenue
$752,000,000 USD
#3 Product/Service/Dept. name
Offerings for PC/Browser
#3 Product/Service revenue
$814,000,000 USD

Innovation assets and Pipeline

Investment into R&D
$1,205,000,000 USD
Total patents held
63
Number of patents field last year
1
All company data collected from its 2016 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page.

Disruption Vulnerability

Belonging to the entertainment sector means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:

*First off, the cultural shift among Millennials and Gen Zs toward experiences over material goods will make entertainment consumption an increasingly desirable activity.

*By the late 2020s, virtual reality (VR) and augmented reality (AR) will reach a level of market penetration significant enough for entertainment companies to start shifting sizeable resources into content production for these platforms.

*By the late 2030s, the widespread popularity of VR and AR will shift the public’s media consumption tastes away from voyeuristic storytelling (traditional movies and television shows) to participatory forms of storytelling that immerses the content consumer by allowing them to influence the content they experience—kind of like being an actor in the movie you’re watching.

*The shrinking cost and versatility of artificial intelligence systems, combined with the increasing computational capacity of future quantum computing systems, will drive down the cost of producing higher budget looking content, especially for future VR and AR platforms.

*All entertainment media (especially video games) will eventually be delivered primarily through subscription based platforms.