Electronic Arts

Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. Founded in May 1982 by former Apple employee Trip Hawkins, the company was a pioneer of the early home computer game industry and promoted the designers and programmers responsible for its games as "software artists". EA published numerous games and some productivity software for personal computers, all of which were developed by external individuals or groups until 1987's Skate or Die! The company shifted toward internal game studios, often through acquisitions, such as Distinctive Software becoming EA Canada in 1991.

Into the 21st century, EA develops and publishes games of established franchises, including Army of Two, Battlefield, Command & Conquer, Dragon Age, Dead Space, Mass Effect, Medal of Honor, Need for Speed, Plants vs. Zombies, The Sims, Skate, SSX, and Star Wars, as well as the EA Sports titles College Football, Dirt Rally, FC–FIFA, Madden NFL, NASCAR, NBA Live, NHL, PGA, UFC, and WRC. Since 2022, their desktop titles appear on the self-developed EA App, an online gaming digital distribution platform for PCs and a direct competitor to Valve's Steam and Epic Games' Store. EA also owns and operates major gaming studios such as BioWare, Criterion Games, DICE, Motive Studio, and Respawn Entertainment.

EA announced plans for a leveraged buyout and will become privately owned by the Saudi Arabia Public Investment Fund, Silver Lake and Affinity Partners for $55 billion in September 2025, including $20 billion in debt equity. If completed, it would be the largest leveraged buyout to date. The deal is expected to close by June 2026, pending regulatory approval and shareholder agreement.

Trip Hawkins had been an Apple Inc. employee since 1978, at a time when the firm had only about fifty employees. Over the next four years, the market for home personal computers skyrocketed. By 1982, Apple had completed its initial public offering (IPO) and become a Fortune 500 company with over one thousand employees. In February 1982, Hawkins arranged a meeting with Don Valentine of Sequoia Capital to discuss financing his new venture, Amazin' Software. Valentine encouraged Hawkins to leave Apple, where the latter served as Director of Product Marketing, and allowed Hawkins to use Sequoia Capital's spare office space to start the company. Trip Hawkins incorporated and established the company with a personal investment of an estimated US$200,000 on May 27, 1982.

For more than seven months, Hawkins refined his Electronic Arts business plan. With aid from his first employee (with whom he worked in marketing at Apple), Rich Melmon, the original plan was written, mostly by Hawkins, on an Apple II in Sequoia Capital's office in August 1982. During that time, Hawkins also employed two of his former staff from Apple, Dave Evans and Pat Marriott, as producers, and a Stanford MBA classmate, Jeff Burton from Atari for international business development. The business plan was again refined in September and reissued on October 8, 1982. By November, the employee headcount rose to 11, including Tim Mott, Bing Gordon, David Maynard, and Steve Hayes. Having outgrown the office space provided by Sequoia Capital, the company relocated to a San Mateo office that overlooked the San Francisco Airport landing path.

When he incorporated the company, Hawkins originally chose Amazin' Software as their company name, but his other early employees of the company universally disliked the name; as a result, the company changed its name to Electronic Arts in November 1982. He scheduled an off-site meeting in the Pajaro Dunes, where the company once held such off-site meetings. Hawkins had developed the ideas of treating software as an art form and calling the developers "software artists". Hence, the latest version of the business plan suggested the name "SoftArt". Hawkins and Melmon knew the founders of Software Arts, the creators of VisiCalc, and thought their permission should be obtained. Dan Bricklin did not want the name used because it sounded too similar (perhaps "confusingly similar") to Software Arts; however, the name concept was liked by all the attendees. Hawkins had also recently read a bestselling book about the film studio United Artists and liked the reputation that the company had created. Hawkins said everyone had a vote, but they would lose it if they went to sleep.

Hawkins liked the word "electronic", and various employees had considered the phrases "Electronic Artists" and "Electronic Arts". When Gordon and others pushed for "Electronic Artists", in tribute to the film company United Artists, Steve Hayes opposed, saying, "We're not the artists, they [the developers] are..." This statement from Hayes immediately tilted sentiment towards Electronic Arts and the name was unanimously endorsed and adopted later in 1982. He recruited his original employees from Apple, Atari, Xerox PARC, and VisiCorp, and got Steve Wozniak to agree to sit on the board of directors. Hawkins was determined to sell directly to buyers. Combined with the fact that Hawkins was pioneering new game brands, this made sales growth more challenging. Retailers wanted to buy known brands from existing distribution partners. Former CEO Larry Probst arrived as VP of Sales in late 1984 and helped expand the already successful company. This policy of dealing directly with retailers gave EA higher margins and better market awareness, key advantages the company leveraged to leapfrog its early competitors.

Promoting its developers was a trademark of EA's early days. Games were sold in square packages modeled after album covers (such as those for 1983's M.U.L.E. and Pinball Construction Set). Hawkins thought the packaging would both save costs and convey an artistic feeling. EA routinely referred to their developers as "artists" and gave them photo credits in their games and full-page magazine ads. Their first such ad, accompanied by the slogan "We see farther," was the first video game advertisement to feature software designers. EA shared lavish profits with their developers, which added to their industry appeal.