Troubled times for gaming

It is a known fact that the $20 bn + gaming industry is going through a downturn. Some facts about the business troubles of EA.

Comments

arturo said…
Again I would ask, if you consider the competition in the game industry a game itself, what could we learn from this week's reading, and what could be a possible strategy or approach that John Riccitiello (EA's CEO) could use to stay ahead of the game?
Do you think that EA or other game mega executives utilize game theory and apply it to determine their strategies? Could you come up with a winning payoff matrix?

I think there is an interesting game in the idea of trying to figure out(by using a simulation tool) the outcomes or real business decisions the same way that you can play make-believe stock market with play money and see how much you could have made if...
Unknown said…
In my opinion, John Riccitiello and the team at EA looked at the future and said that console games and online games were locked in 'competitive' mode - where free online games may take away from the console gaming audience. Hence, they hedged their bets on online gaming by purchasing Playfish. The strategy does not seem to be paying off so far unfortunately. As i last heard, EA is planning to deliver its venerated 'Madden' game available online through Facebook. The idea of developing a winning payoff matrix is fascinating indeed - and if i had the answer i would definitely be writing to Mr Riccitiello right now :)

There have been famous games, notably Sid Meier's 'Tycoon' series of games which explore business problems, like supply chain, retail. A game called 'Capitalism II' covers the rudiments of basic business processes where the goal is to create a business empire. In fact, the idea you mentioned about predicting outcomes is the reason why Wall Street exists, and why people do PhDs in Finance or do an MBA. I may not know enough about business, but i know this for sure Dr Sinclair - if someone manages to make a game that can do what you envision, He would not have to worry about Money for a long, long time.

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