by: Reinout te Brake
Electronic Arts (EA) is buying the South Korean branch of Hands-On Mobile, a global developer of mobile games and content. EA launched its mobile game division in 2004 and then acquired mobile game publisher JAMDAT in Dec 2005 for USD680m to boost its market presence.
As a result, EA Mobile has become a dominant player in the mobile gaming market, competing with mobile game publishers Gameloft and Glu Mobile. In StrategyEye’s view, its recent acquisition of Hands-On Mobile Korea will further contribute to EA Mobile market expansion:
* Firstly, this acquisition allows EA to further expand into the fast-growing Asian market. Indeed, Asia is the primary market for mobile games, enjoying a far better growth than most western countries. Buying a top-tier local mobile game publisher is thus a strategic move for EA Mobile Asia and considerably extends its footprint into a key territory.
* Secondly, EA will strengthen its distribution network in South Korea. Thanks to the success of its main franchise ‘Heroes Lore’, the South Korean publisher has been able to tie in strong local partnerships with mobile phone manufacturers and mobile operators. In particular, Hands-On Mobile Korea has deals with major Korean mobile operators SK Telecom, KTF and LG Telecom.
* Thirdly, this deal will expand EA Mobile’s current line-up of titles with Role-Playing Games (RPG). Indeed, Hands-On Mobile Korea is very famous for its RPG franchise ‘Heroes Lore’ - its second volume sold 100,000 units during its first week on sale. By acquiring this company, EA will be able to capitalize on Hands-On’s proven know-how for making RPG games. As Role-Playing is a highly popular genre in Asia, it is even more important for EA to venture into this new type of games.
At a time when capturing market share in fast-growing Asia Pacific countries is becoming even more competitive, this is seen as a strategic move which will strengthen EA’s overall brand position in South Korea.
Original Post: http://reinouttebrake.blogspot.com/2008/05/ea-mobile-division-chases-market-share.html
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