Electronic Arts vs Take-Two: The Competitive Strategies in the US Videogame Market



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Code : COM0056

Year : 2005

Industry : Entertainment

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: In 2004, Electronic Arts, United States' leading videogame software publisher and manufacturer, started witnessing stiff competition from Take-Two Interactive, which ventured into the sports videogame market with a low-priced football videogame, ESPN NFL2K5, competing directly with Madden NFL, the high-priced football game from Electronic Arts.

To fend off competition, Electronic Arts reduced prices of its products and also signed exclusive deals with some of the major sports leagues in the US.

In response, Take-Two also signed a semi-exclusive deal with Major League Baseball (MLB) to produce baseball videogames as well as acquiring a videogame development studio.

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Pedagogical Objectives:

  • To provide a landscape of the videogame industry in the US
  • To discuss the competitive strategies adopted by Electronic Arts and Take-Two Interactive to establish their supremacy in the industry.


    Keywords : Atari, Electronic Arts, Competitive strategies, Sony, Strategic alliance, Microsoft, Market share of Sports videogames, Low cost strategy, Top sports licenses in US, ESPN (Entertainment and Sports Programming Network), Sega, Competitive Strategies Case Study, Diversification strategies of Take-Two, FIFA Soccer, Video game industry’s value chain

    Contents :
    » Evolution of Video games
    » The Competition


    Case Introduction >>


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