Stockholders May Not Appreciate EA's New Creativity
Business is business. Creativity isn't always good for business, though; in fact, it usually translates to risk.
Electronic Arts CEO John Riccitiello came to the top of the company with new ideas: he wanted to develop AAA new IPs, because his goal was to focus on quality rather than quantity. And so, in following that plan, EA launched several fresh names this generation, including Mirror's Edge, Dragon Age and Dead Space. But it's not like he completely ignored the established franchises; we continue to see new Need for Speed iterations, for instance. But even so, some analysts think that Riccitiello's bold emphasis on creativity may not go over well with the stockholders, who really only care about short-term profits. In speaking to Edge about the subject at hand, video game business author and blogger Nicholas Lovell had this to say:
"My number one fear is that EA's shareholders will lose patience with John Riccitiello's strategy. He is trying to turn a supertanker. Public market shareholders are generally short-termist, and I fear that they will not have the patience to see it through."
That's one way to look at it. But even the biggest blockbuster franchises began as new IPs at some point, right? Besides, with the exception of Mirror's Edge, the other big IPs launched by EA are getting sequels. They may not have sold as much as a Call of Duty but gamers and critics have been happy with EA products as of late. Maybe we shouldn't rock the boat too much early on, and just let the quality continue to arrive... We'll see what's what at a later date. Have patience, stockholders.
10/15/2010 10:22:19 AM Ben Dutka