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Electronic Arts' Domination Of The Market - Bad?

Will writes "A recent article at Gamemethod makes claims about how big companies can squash the little guy, and good gaming along with it: 'With almost 600 million dollars in sales in 2003(not including December), and 20% of the entire market, Electronic Arts is a developing and publishing powerhouse... Why should you be worried that EA rules the American gaming market and dominates sales? Well, if EA becomes too large of a force in the industry, it has some potentially damaging side effects that will hurt us, the consumers.'" It goes on to specify that "competition breeds creativity", suggesting "there's a problem when EA has enough money to buy out any studios that bring out a hit game", and concluding that "the progress of games as a medium will continue, but at a snail's pace in comparison to the previous years of fierce competition."

18 of 83 comments (clear)

  1. 20% isn't enough... by Anonymous Coward · · Score: 5, Insightful

    20% isn't enough of a market share for EA to truly dominate the videogame industy. Compare this to the 90% share of the OS market that Microsoft has... or the 50+% share of the console market that Sony has. While EA is a 900 pound gorilla, we're nowhere close to them 0wn1n9 us all. As far as I can recall EA has never stifled the creativity of the industry... (and no, I don't work for EA)

    1. Re:20% isn't enough... by SandSpider · · Score: 5, Insightful

      Well, I have worked for EA. They bought out the company I worked for, then put us out of business. And that was because they liked what we were doing. Imagine what they'd do if they didn't like us.

      It's not necessary to have 90% market share in order to dominate the industry. No, they can't buy out Microsoft, but they can cause problems for the small developer.

      =Brian

      --
      There is nothing so good that someone, somewhere, will not hate it.
    2. Re:20% isn't enough... by harrkev · · Score: 3, Insightful

      You cannot buy out a privately-owned company unless the owner WANTS to sell.

      If they REALLY liked what you were doing, then why didn't they continue development on it? After all, they own it. If it is very nice, they can profit from it.

      It is a valid strategy to buy out the small competition before they become large. But if you buy them out, you might as well use their products since you own them.

      --
      "-1 Troll" is the apparently the same as "-1 I disagree with you."
  2. Not the biggest problem. by Doctor+Cat · · Score: 4, Insightful
    It's not a situation of a single monopolistic force rather than "a few big publishers" rather than "a lot more little publishers and developers. And while that might lead to somewhat less creativity, that's not the big problem. There was certainly a fair amount of variety in the days when the 8 bit Nintendo was so powerful in the market that Nintedo could make even Toys 'R Us dance like a puppet on their strings.

    More of an issue is that games are so much more expensive now that anyone willing to invest the money at all to cover a development budget is likely to be a lot less willing to take risks. Which usually means churning out clones. I remember watching (and working on) the Ultima series when it went from Richard Garriott churning out an entire game with just hard work (and a little help with the music from his buddy Ken Arnold), to a $50,000 budget for Ultima 5, to a $250,000 budget for Ultima 6, then on up into the millions. Ultima 9 was well into the tens of millions from what I've heard.

    The only way a game company is likely to take a risk on a totally new type of gameplay with multi-million dollar budgets is if they have a "name" developer like Sid Meier or Will Wright. A few of the shareware and budgetware and college student developers that aren't busy churning out clones of Tetris, Pacman, and Shanghai will turn out new things from time to time. But of course they'll never have the flashy graphics of the big expensive titles. Want to look for and/or support innovation? Download some of their work. Maybe someday the mainstream game industry will develop something like the Independent Film world, though so far they haven't gotten too far in that direction (just one festival, the IGF). While having a few big publishers rather than a lot of little publishers might lead to less creativity in games...

    --

    Furcadia - A free online game with user created content, DragonSpeak scripting, & more.

    1. Re:Not the biggest problem. by Ondo · · Score: 2, Insightful

      The only way a game company is likely to take a risk on a totally new type of gameplay with multi-million dollar budgets is if they have a "name" developer like Sid Meier or Will Wright.

      Which seems reasonable, because generally most people aren't likely to risk $50 on a totally new type of gameplay unless it's from a "name" developer like Sid Meier or Will Wright.

  3. Does it matter? by zuba_inverse · · Score: 2, Insightful

    At the basic level, I only buy games that I know I like or in a series that are now sentimental favorites of mine. The only EA games I think I have are 2 from the SSX snowboarding series for my PS2. I think if I had to name the publisher for most of my other games I'd score about 60% or so. I would have a better time remembering the developers. Anyway, if they (EA) release a bunch of stale games, people will look elsewhere. In the games market, there will always be an elsewhere.

  4. Re:EA used to be the innovator by *weasel · · Score: 4, Insightful

    It's actually that business-centric attitude which has ensured that EA is the only major third party publisher that's still around from the 80s.

    Everyone else is on life-support or alive by name only simply for the free marketing and publicity one can milk from 'Midway' or 'Atari'. Not even 'Sierra' was that lucky.

    It may seem tragic - but EA is to games what Warner Brothers is to film. Sometimes they get something right - but most of the time they don't. And they're the only ones with the money to put out content on a regular schedule.

    That aside, the only way this would be 'Bad(tm)' for gaming in general, would be if EA was leveraging its advantage in an anti-competitive manner. If it was strangling the distribution chain RIAA-style to keep (comparitive) indy titles off BestBuy's shelves, or if it was essentially blackmailing console developers into schemes to dissuade competition.

    That hasn't yet happened. Although meatspace distribution has been a hackneyed, independent-unfriendly mess for over a decade - it isn't of EA's making.

    --
    // "Can't clowns and pirates just -try- to get along?"
  5. EA is all that is wrong in the market by DarkFencer · · Score: 4, Insightful

    EA buys companies left and right that have made some successful games. They then tinker with the company, forcing them to make less sucessful games. When they make a couple games that aren't blockbusters, the division is gutted and shut down (or just the name is kept).

    They have done this with MANY divisions of their company. Most notably Origin a few years back.

    1. Re:EA is all that is wrong in the market by Xian97 · · Score: 5, Insightful

      I have to agree. Origin was one of the most innovative companies around with the Ultima series, Wing Commander, and one of my favorites, Crusader No Remorse/Regret. After being assimilated by EA, the third in the Crusader series was shelved, and the Ultima series had two very bad releases which were rushed out the door and very buggy to the point of being nearly unplayable.

      Another casualty was Looking Glass Studios, a real innovator in the industry. They practically created the entire genre of modern stealth games with their Thief series. They showed what could be done with a 3D engine besides just making another FPS with Ultima Underworld and System Shock. Both games would really draw you into the story and had serveral innovations over anything out at that time, features like looking up and down while Doom and it's clones just had 2D vision.

      These days I look to Europe for innovation. Most of the new developments I am excited about are coming from smaller studios there, Arx Fatalis, Gothic II, and the upcoming Sacred in the RPG genre to name a few. Serious Sam was another good effort from a small studio. It used the same tried and true formula as many others but somehow managed to bring the fun back to the genre.

      EA tries to dumb down everything they touch to appeal to the lowest common denominator and leaves the real gamers lacking.

  6. Huh? by Bluesman · · Score: 4, Insightful

    "there's a problem when EA has enough money to buy out any studios that bring out a hit game"

    How is this a problem? Sounds like a huge incentive for people to start a small company and create a truly innovative game.

    I think the trouble is more that there isn't anybody really capable of turning the industry on its head several times over. Game fans really do want more of the same thing over and over, especially the sports fans. Baseball hasn't changed, why should the video game based on it?

    If there really were a market or just a desire for out of the mainstream games, and the talent to produce such games, the open source game efforts wouldn't be so pathetic.

    But it's much easier to sit back and whine about how big corporations have made you jaded than it is to be creative.

    --
    If moderation could change anything, it would be illegal.
  7. Why its bad by quantax · · Score: 3, Insightful

    I will just use the following facts to demonstrate why EA's domination is bad based based on certain dates for Battlefield 1942:

    Sept 11, 2002 : Battlefield 1942 1.1 pre-release patch is released.

    Sept 13, 2002 : Battlefield 1942 is in stores, mMany issues reported making the game anywhere from fully to non-playable depending on your system, even after patching.

    November 15, 2002 : EA announces addon for Battlefield 1942, Road to Rome. Still no patch for many reported issues.

    November 27, 2002 : Patch 1.2 is released finally, fixes a lot of things, but still some issues.

    January 22, 2003 : Road to Rome is gold

    February 3, 2003 : Patch 1.3 is released.

    Im not even going to talk about secret weapons addon, facts are EA had released an addon for a game before they even had their 2nd post-release patch, and thats damn weak. Any company who announces an addon for a game before that game is reasonably patched is rather poor.

    --
    "What can a thoughtful man hope for mankind on Earth, given the experience of the past million years? Nothing." -Bokonon
    1. Re:Why its bad by Nyhm · · Score: 2, Insightful

      Large software projects can manage parallel development. Not fixing problems with their product is inexcusable. However, this doesn't mean that have to freeze development on expansions.

      To their internal project management, the two issues may be very separate (e.g., expansion team may be separate from maintenance team). The simplest branching mechanism in a revision control system should facilitate this (except of course MS VSS).

      Does anyone have any inside knowledge on EA project structure?

    2. Re:Why its bad by The+Evil+Couch · · Score: 3, Insightful
      if you had tried playing Battlefield 1942 single-player before the 1.2 patch, you would have noticed that the AI was horribly inefficient and any game over 16 bots was completely unplayable on anything but the most powerful system. And anything under 16 bots just wasn't any fun.

      factor in the fact that they released an addon BEFORE the 1.2 patch came out and you get the immediate sense that they're in it for the money, rather than for getting a quality product going.

      There were many other bugs that were begging to get fixed, but for me, that was the most noticeable. When an entire mode of gameplay is broken and you're intent on releasing additional content for a fee, it's obvious where your focus is.

  8. the other perspective by spir0 · · Score: 2, Insightful

    what about those small gaming companies who are struggling and running out of money? they would be stoked to be bought out by EA. They get cash, finish their game, then leave EA and use their money to form another dev studio.

    I'm not saying it's all as easy as that, nor are the contracts likely to allow that in all cases, but that's a small developers dream isn't it?

    There must be some good stories in all these buyouts.

    --
    The reason girls and Windows users don't understand UNIX is because all the documentation is in Man files.
  9. 20%?!? by b-baggins · · Score: 3, Insightful

    Twenty percent is a dominant market presence? Good grief.

    --
    You can tell a great deal about the character of a man by observing those who hate him.
  10. EA is hardly a monopoly by LordZardoz · · Score: 4, Insightful

    First, I have nothing against monopolies. However, EA is simply not a Monopoly. They do have competition.

    Nintendo, Sony, Atari(aka Infogrames), Microsoft, THQ, etc, all put out competing proeducts, many of which perform better then EA's games.

    All EA has done is two things. First, they have mastered the art of creating mass market games. Second, they buy up the studios that create the mass market games that they did not create themselves.

    END COMMUNICATION

  11. crappy games, crappy company by paradesign · · Score: 3, Insightful

    EA in my opinion makes crappy games. I havent bought one in over a decade. If EA spent as much time/money developing new game concepts as i does on "expansion packs" i might buy their stuff. But they stick with the tried and true which to me == old and tired. Sure the sims was cool when it first hit, but not nearly as cool as the original "Sim" games. When Maxis was in control SimCity rocked, now it is lacking a soul. EA has a way of extracting the personality out of a game. I like playing games that you can see the developers passion in. Doom is a perfect example, it was made by people, not a bunch of codemonkeys doing the 9-5. Im sure that EA has plenty of talented people working for them, thats not the problem. The company is too big, to "P.C.", and not willing enough to take risks. It would be nice to see them start a trend for once insted of following them.

    --
    I want 2D games back.
  12. EA Promoting Innovation by Pajon · · Score: 4, Insightful

    From what I recall, Will Wright said that The Sims was developed and brought to the market because EA came in and bought Maxis.

    When "independent" the stockholders of Maxis were dragging there feet and di not want to invest in Will's newest dollhouse concept. All that changed when EA bought the company. EA bought Maxis because they viewed Will as the great inventor of SimCity. They gave him free reign on his new project, and probably a ton of cash to work on it with. From that buy out they helped create what I theink is one of the most innovative recent games.

    The expacks are probably a light for their heavy cost, but that does not detract at all from the fresh new game type that The Sims brought to the table. It is a highly successful idea spawning multiple games that are trying to emulate it.

    If it weren't for EA, I don't think The Sims games would be around today.