Kargathia said:
I entered this thread expecting to read all about EA's latest idiocy. I wasn't disappointed.
If I understand this correctly, they are:
- entering a demographically much wider market
- planning to compete with entrenched competitors with established brand loyalty
- under the impression tv audiences are easier to monetise than their gaming counterparts
Honestly, I don't exactly have a Business MBA, but somehow this simultaneously feels like they're about a decade behind the times, and hopelessly naive about expected revenue.
Well I don't have a MBA either, however I do have a B.S. in business. I am also an entrepreneur, I own 3 businesses that all work autonomously at this point (none however are publicly traded or horribly profitable). They provide over 41 jobs to my local community and give me my entertainment budget. While I'm not trying to brag or anything of that nature, nor do my credentials mean all that much because everyone seems to be a PHD on the internet, but I do have some input as to if EA is making a reasonable move.
As a business it is important to branch out in any way possible, as well as to innovate. None of my businesses would be anywhere near as successful as they are without innovation. I think EA is making a somewhat reasonable move in trying to branch out to a new medium. The problem still remains, however, that this is EA. EA is prone to making horrible decisions when it comes to their customer base, and when trying a new product (especially one that is intended to revolutionize an established product) it is of the utmost importance to treat your customers as they were the only thing that matters to you. This is something that EA is not well known for.
With the information given, if EA can manage to do a complete 180 with their customer base for this new product, they could be wildly successful with it. If EA does not have the fortitude to swallow their pride for the duration of establishing this product, they will fail horribly.
Just my two cents, and while it may not matter to you, I hopefully have helped shed some light on why they may be exploring this route.
As an afterthought, they could also just be trying to scrabble for some form of market dominance to prevent the fallout of their recent losses.