JULY 13, 2009 • Trying to capitalize on the popularity of the iPhone as a games platform, Electronic Arts has launched a new micro studio to specialize in developing for the platform, 8lb Gorilla. The location of the new team is not widely known on purpose, EA wants the studio to operate separately like a hungry independent to better synch with the kind of product popular on the Apple platform. The first game from the unit is Zombies & Me, with more releases to follow on a monthly basis, if possible.
Impact: Our big question is how much does EA plan to spend on development and how much synergy will they be able to get on costs compared to smaller independent developers. It could work several ways, a goliath like EA may have trouble trying to develop iPhone products on a reasonable budget that can allow for a decent profit margin. On the other hand, even a money losing effort from EA could wreck havoc on smaller independent developers. EA could spend far more on development and marketing than the market can support and by doing so significantly increase overall consumer expectations so that the market reaches a spiraling of costs that make the business unprofitable for everyone. This is not necessarily an 8lb Gorilla, or even a 800lb Gorilla…it could possibly be an 8 ton Gorilla!
