As many of you may have seen, EA Revolutionizes Sports Gaming with Tiger Woods Online, today we made a very significant announcement that signals a new future for EA SPORTS games on the PC.  Based upon the commentary of recent posters to this blog (regardless of the subject matter), PC sports games and the position of EA SPORTS on that platform is still a source of interest and angst for a number of you, so I wanted to share with you directly some added context to why this is such an important announcement for EA and how it signals a new future for how we intend to bring our experiences to what is the largest gaming platform in the world, yet one so challenging for us without creative new products and new business models to support them.

As I’ve mentioned previously on numerous occasions, the personal computer as a viable platform for authentic sports games has declined radically in recent years, making it incredibly difficult to green light titles and allocate precious development resources for what has become a questionable return.   Currently, the PC Sports Game segment is virtually non-existent, having shrunk to less that 1 percent of the overall videogame segment, from its peak in 1998, when the split was 83% console / 17% PC (in NA). A rapid decrease in the PC sports game segment share began in 2000 with the launch of the Playstation 2 and continued with the launch of each new console system since.  Tiger Woods PGA TOUR is a perfect example of a product whose sales on the PC platform dropped precipitously from 2000-2008, as noted on the chart.

SOURCE: NPD Data

We’ve said a number of times that we think that while PC is rapidly becoming the largest gaming platform, the opportunity is not in the packaged goods PC business.  That’s why we’re so excited about today’s announcement of Tiger Woods PGA TOUR Online.  We intend to be at the forefront of that evolution and today’s announcement signals that. You can expect to see us investing in online games for the PC with new sports experiences, aimed at both the loyal hard-core as well as the broader sports fan. You can expect experimentation in subscriptions, premium downloadable content, downloads sponsored by advertisers, micro-transactions, free-to-play models and massive tournament play. I will say this again as clearly as I can – we are great believers in the PC as a viable platform for sports games, but not following the norms of the previous business model. These are challenging times for business and we have obligations to our employees, to our fans and to our shareholders.

Let me also take a moment to address, again, an area of frustration for those of you who state you have a right to know what we are negotiating, creating and planning as regards to our title. While I’ve provided insights on this topic previously, I’m happy to explain it again. We are constantly looking to bring announcements and information to our customers. It’s a part of this job that I love. However, we can only share information when all legal, competitive and operational issues have been cleared and licensor approvals have been obtained. Not a moment before.  I’m proud at how we have opened our lines of communication. But, there are limits to how freely we can communicate during the development stages. That’s just how this business works.

In order to make fundamental shifts in an established ecosystem, you often have to have the courage to hit the reset button. Today’s announcement about Tiger Woods PGA TOUR Online is another, of many, examples of how we are doing that.  You’ll continue to hear more about these strategies across our business in the future, including next week at E3.

I know I’m excited as excited as I have been in years to attend a show that I think will be chock full of big announcements, and I think it will signal an even heightened sense of optimism, innovation and confidence in our industry.

Peter

P.S.  I’d invite you to go ahead and sign up now for the Tiger Woods PGA TOUR Online beta at www.tigerwoodsonline.com for when it becomes available later this year.