Electronic Arts (EA), the gaming publisher, has been a central figure in several controversies over the past decade, with issues ranging from company acquisitions to accusations of anti-consumer practices and anti-competitive actions in their sports-related contracts. EA was notably named “Worst Company in America” by Consumerist in 2012 and 2013 and was listed as the 5th most hated company by USA Today in 2018.
The company’s approach during its rapid growth phase in the early 2000s involved acquiring development studios mainly for their intellectual property (IP) assets. These acquisitions often led to changes in the studios’ creative output or even the dissolution of the studios if their games performed poorly, leading to the nickname “Evil Empire” within the industry. A notable example of this practice was EA’s handling of Origin Systems, the creators of the Ultima series, where they pushed for the quick release of two titles despite quality concerns, leading to poor reception and the eventual closure of the studio.
However, by 2008, EA began to change its acquisition strategy, granting more autonomy to the acquired studios and reducing interference with their corporate culture. Statements by then CEO John Riccitiello and others indicated a shift away from the previous “assembly line” approach to game development. Despite this, the closure of Visceral Games in 2017 was seen as a regression to past habits.
Moreover, EA has been criticized for its treatment of employees, particularly for its excessive use of “crunch time,” where employees work exceptionally long hours, often without overtime pay. The “EA Spouse” blog post in 2004, which detailed the demanding hours placed upon an employee, highlighted the severity of this issue within the company.
Regarding recent developments, EA is tipped as a potential takeover target, with its enterprise value estimated at $38 billion, making it a significant player in the gaming industry. This speculation comes amidst an era of industry consolidation, with major publishers being acquired by larger conglomerates. EA’s diverse portfolio, including sports franchises and other major brands like The Sims and Apex Legends, makes it an attractive target despite the shared licensing of certain franchises like Star Wars with other third-party companies.
This paints a picture of a gaming giant that has had its share of criticisms but is also positioned as a valuable asset in the rapidly consolidating gaming industry. Another example are Online casinos mit Neteller.
