The Story of Video Gaming Company Electronic Arts (EA)
With the advent of computers and consoles, gaming took the world by storm. It evolved into a multibillion dollar industry with different companies releasing franchises and breakthrough games every year. Gaming pushes the human boundaries as to what is possible and with multiple exciting technologies like virtual reality and augmented reality, the industry is set for a massive change in the future. However, the gaming industry had humble beginnings and this is the story of one of the industry giants, Electronic Arts (EA.)
Electronic Arts was founded in 1982 by Trip Hawkins, an Apple employee, who left his job and began his own company. Initially, the company was named Amazin’ Software. After the release of Apple’s Macintosh personal computer (PC,) the market for PCs was thrown open.
Trip Hawkins met with Don Valentine, the founder of the venture capital firm Sequoia Capital, to discuss financing options for his new venture. Don Valentine convinced Trip Hawkins to resign from Apple and provided a spare office for Hawkins to use. Hawkins spent seven months with his first employee, Rich Melmon (also a former Apple employee,) to refine their business plan. Hawkins continued to hire former Apple and Atari workers till his team outgrew the office Sequoia Capital provided and moved to a bigger office in San Mateo.
Naming of Electronic Arts
The name Amazin’ Software was disliked by the rest of the team. Trip Hawkins believed developing software was an art form and called the developers ‘software artists,’ leading the team to consider ‘SoftArt’ for the company’s name. However, there was another company by the name Software Arts and owing to the similarities in names, the idea was dropped. Electronic Arts and Electronic Artists are some of the names which were floated around at the time and the popular sentiment was towards Electronic Artists. Electronic Artists was a tribute to the film company United Artists, but an employee insisted filmmakers were the real artists, leading to which everyone agreed to Electronic Arts.
Growth of EA
Trip Hawkins was determined to sell directly to buyers and the policy of dealing directly with retailers gave EA better margins and real time market awareness. Game developers were given due credit in games as well as in magazines. The album cover box type packaging like the packaging for games we see now was pioneered by EA. Game development became in house and EA released their first game, Skate or Die! At the same time, they worked with external developers as well. Owing to Trip Hawkins’s obsession to develop a sports game, a contract was signed with football coach John Madden, which led to the development of the popular video game franchise Madden NFL.
Over the decades, EA continued developing games for various platforms like the PlayStation, Nintendo consoles and PCs. EA also acquired its license to develop Star Wars games after LucasArts was shut down by Disney.
EA also released multiple successful franchises like Need for Speed, FIFA, Madden, Star Wars, Battlefield, NBA Live, Medal of Honor and The Sims.
EA changed the way games are perceived and is always on the forefront of innovation. A recent bad publicity incident due to its microtransactions in Star Wars: Battlefront II hurt their image badly, but they quickly bounced back with the game Apex Legends, a battle royale game like Player Unknown Battlegrounds (PUBG.) EA, based on the revenue generated by it, is currently the second largest gaming company in the Americas and Europe, behind Activision Blizzard.
Emerging Startup Stories
Suki: This Startup Wants To Transform Healthcare With Its Artificial Intelligence Tool
We live in a rapidly transforming era where humanity is making exponential leaps in technology. Thirty years ago, no one would have believed you could talk to an online voice assistant to create tasks and get things done. Ten years ago, no one would have believed humanity would land robots on Mars. Technology truly has improved the quality of living of every human who owns a smartphone and has access to an internet connection. Voice assistants are slowly replacing manual tasks and making lives easier and efficient. Siri, Alexa, Google Voice Assistant are just some of the widely used artificial intelligence based tools which are employed on a daily basis. Artificial intelligence, which is hailed as the technology of the future is now slowly making its way into much more complex domains like self driving vehicles, quantum computing and also health care.
Suki, a United States of America based startup founded by Punit Soni, developed their own voice assistant which runs on artificial intelligence to simplify healthcare for doctors and other healthcare professionals. In simple terms, Suki is akin to Siri for doctors. While you could order a pizza or schedule an appointment on Siri, doctors could modify, edit and add health records of their patients. Suki is a powerful tool to help doctors with documentation of health records which often take hours of their (doctors) time.
Suki currently focuses on documentation but has the potential to expand its usage to data queries, ordering, prescribing and billing. According to a white paper published by Suki, using its technology increases the time a doctor spends with a patient by 12% by cutting note taking time by 76%. The time which is saved also brings in a financial benefit of $30,000 more in revenue a year on average for doctors.
Suki raised a $ 20 million Series B round from Flare Capital Partners, First Round Capital, and Venrock, doubling its total funding to $ 40 million since its 2017 launch. Suki is also looking to expand its reach in India and has decided to establish Bangalore as their base of operations. India holds a lot of potential for Suki considering the amount of manual work which goes into almost any sector.
It would be interesting to watch how Suki and other similar AI based startups would transform healthcare across the world.
5 Successful Indian Startups Founded By Women
The workplace has undergone massive changes in the last century. At the turn of the Industrial Revolution, any workplace was dominated by men while the women were delegated to run the homes. However, with the advent of the internet and new and exciting technologies, workplaces have undergone a tectonic shift. Women are no longer comfortable staying at home and are instead opting to lead teams and organisations. As every year passes, we get closer to true gender equality, women have proven time and again that they are equally capable to get the job done if not better in some instances. Names like Wolfe Herd (Bumble founder,) Kylie Jenner (Kylie Cosmetics founder,) Masaba Gupta (Masaba clothing label founder) are just some of the names who are known for leading world famous brands with their unique style of leadership.
As the world celebrates International Women’s Day, we bring to you five women founders who run world famous and successful startups.
1) Upasana Taku-MobiKwik
If you are an Indian and are used to doing online shopping, more often than not at the time of payment, you would be directed to a payment gateway. One of these gateways would normally be MobiKwik. The startup is a well known name in the digital payments and digital wallet space. MobiKwik was founded by Upasana Taku in 2009, who prior to founding MobiKwik used to work with PayPal. Today Upasana Taku is also in charge of bank partnerships, business operations, and talent acquisition at MobiKwik.
2) Richa Kar-Zivame
An enthusiastic MBA student, Richa Kar, developed an online lingerie shopping platform in the year 2011. Currently, Zivame is India’s leading online lingerie store with a valuation of more than $ 100 million. The brilliant idea for her own lingerie business came to light when Richa tracked Victoria’s Secret’s sales, who was one of her clients when she was working at SAP. She observed the lingerie sales figures reached peaks overseas but, Indian women were not provided with the similar innerwear. While Richa was studying the Indian lingerie market, she realized the social embarrassment in India surrounding lingerie shopping. Today Richa Kar could be credited with destigmatising the uneasiness surrounding lingerie shopping in India.
3) Falguna Nayar-Nykaa
After a long stint as an investment banker, Falguni Nayar founded Nykaa.com in the year 2013. An online one stop shop for beauty products from Indian and international brands, Nykaa changed the world of online shopping. Who would have ever thought buying makeup online would be so easy? Falguni Nayar proved many critics wrong and created a brand new place for people who love experimenting with styles, designs and colors.
ALSO READ: Zivame: Founding Story
4) Sabina Chopra-Yatra.com
Yatra.com is a popular Indian website for making flight and hotel bookings. Sabina Chopra was instrumental in identifying the potential for travel commerce in India and people moving towards cheaper or easier travel. By the time, people started looking to make bookings, Sabina made sure Yatra.com was already in place. Sabina was the former Head of India Operations of eBookers, which is also an online travel company based in Europe. Along with this, she was also working with Japan Airlines which further adds to her experience in the travel industry.
5) Rashmi Sinha-SlideShare
SlideShare allows people to upload and access their presentations online. While this feature is presently available everywhere, SlideShare was one of the first players in making this happen. Rashmi Sinha was one of the founders of the presentation sharing platform SlideShare. The company became so successful that in 2012, LinkedIn acquired the company for an amount of $100 million.
Let us know in the comments if you know any other wonderful women who have become leaders of their right or have started up and are doing extraordinary things. We at Startup Stories wish a wonderful Women’s Day to all the women in the world who are changemakers.
Why Are Ads On Digital Media Failing To Reach The Right Audience?
If you are a regular user of social media platforms and also a fan of consuming content on the digital medium, then there is a very high likelihood that you have seen ads on pages you are reading or watching something. There would be times when you have been targeted by an ad which feels like it was wrongly targeted at you. Imagine if you are a vegetarian by choice and while browsing online, if you are targeted by a food delivery app which shows ads about chicken dishes. The ad would only serve to spoil the mood of the online user instead of serving its actual purpose which is to push the user to buy a chicken dish.
These wrongly targeted ads might be the side effects of performance marketing or a weak brand marketing. Performance marketing means advertising programs where advertisers pay only when a specific action occurs. These actions can include a generated lead, a sale, a click, and more. Inshort, performance marketing is used to create highly targeted ads for a very specific target audience at a low cost. Performance marketing usually means high volume for a very specific cost.
Brand marketers on the other hand believe in narrowly defining target audiences but end up spending a lot of money on ad placements. Gautam Mehra, CEO, Dentsu Programmatic India & CDO, Dentsu International Asia Pacific said, “You’ve defined a persona, you know the emotions you want to elicit, but then you buy a YouTube masthead and CricInfo sponsorships because IPL is up. If brand advertisers look at audience-based buys more deeply than just placements, you will see more relevant ads (sic.)”
ALSO READ: How Digital Marketing Is Impacted Due To The COVID-19 Pandemic
Performance marketing is more of a sales function rather than a marketing function and is about meeting the cost of acquisition. This is a reason why budgets are usually high for performance marketing. Mehra goes on to add, “the fact is that an engineer can out-beat FMCGs on performance marketing. Advertisers who have cracked this are spending 10x and are on an ‘always on’ mode (unlike time-bound brand campaigns.)”
There is always the case of supply and demand, with the supply usually exceeding the demand on digital platforms. Ultimately, it boils down to the choice between no ad versus low relevance ad and it is quite easy to guess that having a low relevance ad is better.
Arvind R. P., Director – Marketing and Communications at McDonald’s India (West and South,) said “McDonalds’ for instance, has seen its share of spends on digital grow from 20% levels a couple of years back to over 40% at present. Outcomes of this journey have been encouraging, proven by our media-mix-modelling and other key metrics. We have seen best results from an optimal mix of Television plus digital (sic.)” Moreover, Arvind also believes performance marketing only approach could turn out to be more suited to short term, versus a more consistent full funnel effort. The latter ensures adequate emphasis on building consideration, as well as growing transactions. Arvind feels digital is a complex medium which needs investment in the right talent who could use the right tools. Brands which underestimate the need for the investment are often disappointed from the return on investment from the digital medium.
With the constantly changing consumer dynamics marketers are now shifting to unscripted marketing which frankly needs more insights into the consumer mindset. The lack of marketers to do the proper research is why digital medium is plagued with irrelevant ads.
- Suki: This Startup Wants To Transform Healthcare With Its Artificial Intelligence Tool
- 5 Successful Indian Startups Founded By Women
- Leher Versus Clubhouse: Which Audio Listening Startup Would You Choose?
- Why Are Ads On Digital Media Failing To Reach The Right Audience?
- Facebook Launches BARS For Creating Raps To Counter TikTok’s Growing Popularity
- How Domino’s Pizza Grew 13000% From 2008 To 2020
- Elon Musk Tweets About Bitcoin Bull Run And Loses $ 15 Billion
- Daily Basket Creates BBisabully Over Being Sued By Big Basket Over Usage Of Basket
- Bike Rental Startup Bounce Goes For A Second Round Of Layoffs Amidst Operations Scale Down
- How Parle G Became An Iconic and Well Loved Indian Brand
- Adidas To Sell Reebok Brand Due To Declining Sales
- Carl Pei’s Nothing Invites Retail Investors
- The Incredible Journey Of Wolfe Herd And The Dating App Bumble Which Went Public
- Alphabet Invests In Carl Pei’s Startup Nothing
- Bitcoin Soars As Tesla Purchases 1.5 Billion Dollars Worth Of Cryptocurrency
- From Unicorn To Bankruptcy; Knotel Bears The Brunt Of COVID-19 Pandemic
- The Journey Of Wine Recommendation App Vivino Which Raised 155 Million Dollars In Funding
- How Does Investment Startup Robinhood Make Money?
- The Story of Mens Grooming Startup Bombay Shaving Company
- Startup India Seed Fund To Be Disbursed From April 1st