Activision Used Focused Differentiation Strategy Focusing On Niche Segment (World of Warcraft &

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1.

EA’s developer genius was demonstrated by their ability to create realistic simulation sports games like
FIFA series as well as licensing agreements with football teams.

Their weaknesses was portrayed by acquiring talented studios and not letting the studio maintain their
creative direction resulting in consequences like Anthem and SimCity.

EA could’ve realized their opportunities in potential for mobile gaming industry as well as capitalizing on
the trend of micro transactions properly.

Free-to-play games like Fortnite and aggressive monetization strategies threatened EA's premium priced
game sales.

A SWOT analysis could have helped EA to evaluate and respond to such internal and external factors.

2.

EA used Differentiation strategy creating unique franchises like Sims and FIFA. But they failed to
differentiate among existing franchises as EA is still heavily criticized for lack of innovation in FIFA
franchise

Activision used focused differentiation strategy focusing on niche segment (World of Warcraft &
Overwatch) allowing their studio to maintain creative autonomy resulting in most successful games.

By acquiring studios EA wanted to follow Cost Leadership to reduce cost by streamlining development
and maximizing profit but after acquiring BioWare, continuous release of Mass Effect sequels massively
hindered this popular franchise’s quality.

3.
Being a startup, competing with giants like EA and Activision directly is difficult. Rather focusing on niche
market and a low cost micro transaction based model is the way to go.

Embracing Indie based aesthetics to stand out from the mass produced games of large companies.

Quality over quantity will be emphasized where rather than releasing multiple titles haphazardly, few
titles will be properly released and supported for a set period of time.

Community engagement is a vital aspect in modern video gaming industry, which will be maintained
online.
4.

Several strategies of Activision like lack of innovation for their sequels and focus on specific genre of
games led me to play fewer of Activision games. Declining popularity of Call of Duty franchise is due to
its high price and lack of innovations as well as poor post launch support. Starting from not addressing
cheaters in game properly to supporting the game for only a couple of years and then releasing a new
title with higher price makes purchase of Call of Duty games now seem like a costly and very short-lived
investment.

Moreover false promises like providing new mode for popular Overwatch 2 game and having to pay for
new mode in a free game led to bad image of Activision, reducing popularity further. This indicates
internal inconsistency within the organization.

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