Electronic Arts SuccessStory

Electronic Arts (EA) is known for its novel approach in the gaming industry of giving game designers widespread recognition. The company was founded by Trip Hawkins in 1982. Before the incorporation of EA, Hawkins worked for Apple, Inc. as Director of Product Marketing. Previously called Amazin’ Software, Hawkins approached Don Valentine for money to start the company. Valentine encouraged Hawkins to leave Apple and even offered him the use of spare office space of Sequoia Capital.

EA started with a personal investment by Hawkins of around $200,000. Such was his determination to do something on his own! He spent more than 7 months polishing up the business plan for EA, with help from a former Apple colleague, Rich Melmon. More help arrived in the form of Dave Evans and Pat Marriott, who also worked for Apple previously. Hawkins also enrolled the services of a former MBA classmate, Jeff Burton to promote business development globally.In December 1982, Hawkins received funding to the tune of $2 million from Sequoia Capital, Sevin Rosen Funds, and Kleiner Perkins Caufield & Byers. Such was his influence and charisma that he managed to hire good talent from companies such as Atari, VisiCorp, Xerox PARC, and Apple. Steve Wozniack agreed to serve on EA’s board of directors.

Hawkins aggressively pursued the strategy of dealing directly with buyers. While this made notching up sales infinitely challenging, it also enabled EA to go far ahead of early competition. Higher margins and greater market awareness were advantages that EA harnessed to maximize profits. In 1984, Larry Probst became VP of Sales and helped EA make $18 million.