What is the effect of EA Games' market strategy on competition within the industry?
The market strategies of EA Games, especially timing and release strategies, can be considered as a factor that will define the competitive landscape of the video game industry.
EA Games can influence the landscape of the market very strategically by delivering games according to production-to-retailer timing and launching games right during the peak seasons of gaming, and consumer demands.
In this sense, it proves itself as an action that does not only benefit EA’s position in the market but also places pressure towards competitors for them to apply on their own time on market releases, simulating competitive dynamics.
Furthermore, EA’s strategic placement takes advantage of network externalities that arise within the video game industry, wherein the value of a game’s ecosystem appreciates with the number of players participating in it, hence leading players to relate themselves with more established gaming communities, that are most of the time steered by EA's strong marketing campaigns.
The company manoeuvres these network effects well, showing its ability to keep ahead while being greatly enhanced by making very good games that create the standard in the industry.
This makes EA’s moves help form the market direction, pushing others to change or face the danger of becoming outdated which then leads to a vibrant but demanding race.