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Electronic Arts Inc. (EA develops, markets, publishes and distributes video game software and content that can be played by consumers on a variety of platforms, including video game consoles, such as the PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii; personal computers (PCs), including the Macintosh; handheld game players, such as the PlayStation Portable (PSP) and Nintendo DS, and wireless devices, such as cellular phones and smart phones, including the Apple iPhone. The Company’s products for videogame consoles, PCs and handhelds are delivered on physical media (disks and cartridges) that are sold at retail stores and through mail-order (packaged goods products). Some electronically delivered content and services are add-ons or are related to its packaged goods products (add-on content or matchmaking services); while other games, content and services that it offers, such as games for wireless devices, and Internet-only games, are available only through electronic delivery.

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Market Share

Electronic Arts is the industry's largest revenue generator, beating out domestic competitors ranging from Activision and Take-Two, to international competition such as Vivendi Games and Konami. The potential acquisition of Take-Two Interactive Software (TTWO) and its entertainment properties would do well to add to EA's share of the industry's total revenues. Market share becomes even more important as the size of the market decreases. The U.S. video game market contracted significantly in June 2009. Sales of video game equipment and software fell 31% to $1.17 billion in June 2009 which represented the largest decline since 2000. Software, hardware, and accessory sales decreased 29%, 38%, and 22%, respectively. In addition to the current economic weakness, the declines are thought to be caused by consumers waiting for price reductions before purchasing items. Year to date overall video game sales are down 12%, but those in the industry are expecting the second half to be strong, as there are many big releases planned for the 2nd half. Additionally, in June 2009, Activision Blizzard's "Prototype" was the top selling game, further showing the lack of security in ERTS's spot as industry leader.

Company (2006 Market Share by Revenues)
Electronic Arts 19.80%
Konami 9.80%
Take 2 Interactive 8.90%
Activision 8.80%
Other 52.70%