Business Model Innovation Hub

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Life mimicking video games - EA's business model innovation

It's Saturday morning here in ottawa, and I am having my coffee and watching English Premiere League soccer and was struck by an interesting business model innovation in which life (i.e. sports) has begun to imitate video games.

I recognized the style of graphics that were being used for score, statistics and information about the game; they resembled the style used in Electronic Arts FIFA Soccer franchise video games. Then I noticed the EA logo being displayed in the corner of some of the graphics themselves.

It reminded me about the story I had read regarding the American football television broadcasts creating and adding camera angles that would replicate the player perspective from another of EA's top sellers Madden Football.

It seems EA may have gathered a good idea to create some innovation in their business model by leveraging their computer graphics excellence. Much like Amazon's move into providing cloud computing or data storage based on their well-developed IT infrastructure. EA has created a new value proposition for a previous non-customer, television sports broadcasting.

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Comment by Alex Osterwalder on September 27, 2010 at 10:14am: EA indeed has the potential to blur the lines between real sports consumed on TV and fantasy sports consumed on consoles and computers.

By the way, a fascinating part of EA's sports games business model is that it is feeding itself yearly. Because team compositions change every years, they can sell new games yearly without too heavy investments in product innovation...