Strong brand recognition: The Electronic Arts brand valuation has featured in 35 brand rankings, including the strongest and most valuable technology brands, the biggest US brands, and the best Global brands (Brandirectory, 2024). This consistent recognition underscores EA’s high brand value and market recognition. EA’s established brand can drive initial interest and sales of the EA VR.
Popular IP resources: EA has many popular IPs. Each IP has its loyal user base that will want to dive deeper into the gaming world with EA VR. The classic IP FIFA 21 was the best-selling game in the UK in 2020 and the franchise sold over 325 million units’ lifetime. Another popular IP, The Sims, has had a 24-year history. The Sims 4 has more than 70 million players worldwide (Electronic Arts, 2023).
Innovation: EA is good at innovating. In 2022, Electronic Arts (EA) was honored with the Schwartz Innovation Award by the Orlando Economic Partnership (UCF Today, 2022). This highlights EA’s ability to lead in new technologies such as virtual reality.
Strong financial performance: In FY2023, EA demonstrated solid financial performance, with record net bookings and an 11% year-over-year increase, driven by their EA SPORTS FIFA franchise (Electronic Arts, 2023). Stable finance gives EA the ability to invest in innovative programs such as EA VR and support R&D and marketing.
Weaknesses:
Overly aggressive business strategy: EA has faced criticism and regulatory scrutiny over its use of loot boxes in games such as “FIFA” and “Star Wars Battlefront II.” Players criticized EA for the inclusion of pay-to-win elements (EnvZone, 2023). This could undermine consumer trust and willingness to adopt new products like EA VR.
Dependence on a few popular games: EA is highly dependent on its flagship game series. As stated in the FY23 results, the increase is mainly driven by their EA SPORTS FIFA franchise (Electronic Arts, 2023). For EA VR, relying on a few series to drive adoption could be limiting if the brand doesn’t have diverse content that appeals to a broader audience.
Game quality and technical issues: Certain games were released with technical issues, such as Mass Effect: Andromeda was released with character animation bugs (Gamespot, 2017). Past issues could make consumers hesitant to invest in a new EA VR system
Opportunities:
Surging of the VR market: In 2023, the gaming category occupied 24% of the U.S. VR market. By 2030, the VR market is projected to reach a staggering $165.91 billion (Fortune Business Insights, 2023). The growing interest and investment in VR are creating a larger audience and wider acceptance.
Globalgamingmarket expansion: The global gaming market is booming, with a compound annual growth rate of 13.4% expected from 2023 to 2030, as reported by Grand View Research (Grand View Research, 2023). As the global gaming market continues to grow, EA VR has the potential to gain a broader user base worldwide.
The rise of eSports: eSports is becoming more and more popular globally. Its value is projected to increase from USD 1.88 billion in 2022 to USD 12.10 billion by 2030, marking a compound annual growth rate (CAGR) of 26.8% (Grand View Research, 2023). The popularity of eSports means that more viewers and gamers may be interested in immersive gaming experiences. EA can appeal to this demographic by integrating VR into eSports tournaments.
Partnerships and Acquisitions: Many game studios are emerging. EA can partner with other companies or acquire them to absorb new technologies and add new IPs. This will not only extend the market reach but also help EA build its leadership in the competitive VR market.
Threats:
The established leader in VR: The current leaders in the VR market, such as Sony’s PlayStation VR, have built strong brand loyalty. PlayStation VR offers a VR experience that is compatible with PS4 and PS5 consoles, thus attracting many customers. The market share held by these leaders may make it difficult for new entrants like EA to gain market share.
The game market’s competition intensifies: The number of competitors grows as the game market grows. Companies like Activision Blizzard and Ubisoft are expanding their market share with innovative game releases. If they launch VR products that surpass EA VR, these competitors could divert consumer attention and market share from EA VR.
Rise of AI games: As gaming technology advances, AI-powered games are becoming more mainstream due to their innovative and interactive nature. This trend may force traditional VR games to reposition themselves. AI games’ highly dynamic and interactive capabilities may set new industry standards (Marr, 2024), making it difficult for traditional VR games to meet player expectations.
