"In the summer of 1975 I learned about the invention of
the microprocessor and about the first retail store where a consumer could rent
a timesharing terminal to use from home," he remembered. "That very
day I committed to found EA in 1982. I figured that it would take seven years
for enough computing hardware to get into homes to create an audience for the
computer games that I wanted to make."
After graduating from Harvard, Hawkins moved across the
country to pursue an MBA at Stanford, a decision that placed him at ground zero
of the personal computer revolution. "I might not have discovered Silicon
Valley if I had not chosen Stanford for graduate school. Ironically, the major
institutions at that time—including Stanford, Berkeley, National Semiconductor,
Hewlett-Packard, IBM, and Intel—did not grasp the concept of home computing and
video games. A close colleague of mine that had gone to Berkeley tried to get
the computer science professors interested in Apple, and they thought the Apple
II was basically a pointless tinker toy."
"When I finished my education in 1978 I got a job at
Apple. When I started there, we had only fifty employees and had sold only
1,000 computers in the history of the company, most of them in the prior year.
Four years later we were a Fortune 500 company with 4,000 employees and nearing
$1 billion in annual revenue." Machines that had once filled entire rooms
at universities could now be had for less than $500 dollars and fit nicely on a
corner desk in the family recreation room. Affordable microcomputers like the
Apple II, Commodore 64, and Atari 400/800 brought real number-crunching power
to the average person, allowing them to figure their income taxes, write school
reports, and of course, play games.
Flush with cash from Apple’s IPO, Hawkins knew that it was
time for him to make his move. "Right on schedule, I resigned from Apple
and incorporated EA on May 28, 1982. I personally funded it for the next six
months, working by myself out of my home, and then in August began using an
office at Sequoia Capital, where I also began hiring the early employees."
San Mateo, California would become their permanent headquarters for many years
until a 1998 move to nearby Redwood City. The only thing left to do was come up with a name. "The
original name had been Amazin' Software. But I wanted to recognize software as
an art form and wanted to change it to SoftArt. But Dan Bricklin of Software
Arts asked us not to use that name. So we brainstormed and decided to change it
to Electronic Arts."
The Launch
From the beginning, Hawkins had an ambitious view of what
games could be. "We learn by doing," he said, "and computer simulation
was the most efficient way to do this. I wanted to help the world transition
from brain-deadening media like broadcast television to interactive media that
would connect people and help them grow." Hawkins also wanted to properly
credit and compensate the talent that produced games, giving them the same
respect that artists in other media enjoyed. He envisioned Electronic Arts as a
publishing company that would be known for its quality and professionalism,
working with the best independent talent to make the computer game industry
equivalent with film, books, or music.
Electronic Arts shipped its first titles, Hard Hat Mack,
Pinball Construction Set, Archon, M.U.L.E., Worms?, and Murder on the
Zinderneuf in the spring of 1983. The games were packaged in unique gatefold
sleeves, with the designer’s names on the front and a sophisticated graphic
design that gave them the hip appearance of rock albums. "It was a
pleasant surprise that the media quickly embraced my vision and lifted the
profile of the company," Hawkins remembered. "In hindsight, my
choices of the first round of products turned out amazingly well. Of the first
six games, three of them ultimately made the Computer Gaming World Hall of
Fame, and a fourth one charted on the bestseller lists."
Building the Business
Another early hit for EA was Doctor J and Larry Bird Go One
on One. Released in 1983, the basketball game enjoyed healthy sales, boosted by
the involvement of sports stars Julius Erving and Larry Bird. "EA Sports
really originated with One on One," Hawkins explained, "which I
designed, and where I introduced the business practice of involving celebrities
in the design and promotion of video games."
To build its business, Electronic Arts aggressively upset
the traditional rules of software publishing. Determined to set his own terms,
Hawkins reduced the discount that EA would give software distributors, keeping
more of the profits for itself. In the fall of 1984, Larry Probst joined the
company as vice president of sales. Probst brought a new level of organization
to EA's strategy of bypassing distributors and dealing directly with retailers,
causing its already successful market presence to grow even further. With its
increased sales potential, EA began to distribute games from other companies,
including Lucasfilm Games, SSI, and Interplay.
The Crash
Meanwhile trouble was brewing in the world of console video
games that would soon undermine the entire industry. Since its introduction in
1977, the Atari VCS/2600 home console had dominated American living rooms. In
the console’s halcyon years, Atari poured millions of cartridges into
retailers, feeding a customer base that was hungry for anything new to plug in.
Third-party publishers, eager to cash in on Atari’s success, blossomed in a
market that seemed limitless.
However, by 1983 the machine was aging. Consumers were
losing interest and there was no coherent plan for what would follow. As the
market softened, the small, undercapitalized publishers were the first to die
off, leaving retailers little choice but to drastically discount unsold
cartridges that they had previously been able to return for credit. This
brought about an accelerating chain reaction of price cuts across the board and
vast warehouses of unsold merchandise soon piled up.
By the end of 1984 the implosion was complete. Retailers
were burned out, publishers were decimated, and customers walked away, leading
many to believe that video games were just a fad whose time had passed. The
stink lingering over the video game industry was so bad that it spread to
personal computers as well. "Atari's meltdown created a tsunami that wiped
out public interest in games, retail support, media interest, and gave gaming a
stigma that lasted a decade," Hawkins remembered.
The Eighties
Electronic Arts was forced to revise their business plan in
order to weather the lean years following the crash. "I made a conscious
decision to ignore Atari and to focus on the next generation of
technology," Hawkins said. "We had to operate like the Fremen of
Dune, recycling our own saliva to live in the desert, to survive. We had to
rebuild the industry brick by brick over a period of years."
Although EA’s original marketing had focused on promoting
individual game designers, the company quickly realized that consumers were
more attuned to the games themselves. Designers were still credited, but EA’s
marketing focus shifted in favor of game genres and building brand recognition.
The success of One on One taught EA the power of tying popular sports figures
to game properties and a series of licensed sports games followed, including
Jordan vs. Bird: One on One, Ferrari Formula One, Richard Petty’s Talladega,
and Earl Weaver Baseball.
As it grew, Electronic Arts built a diverse catalog of games
over the 1980’s. Titles were produced across multiple computer platforms, from
the Apple II and Macintosh, to the Amiga, Commodore 64, IBM PC, Atari 800, and
Atari ST. Some of the highlights included The Bard’s Tale, Wasteland,
Starflight, and Chuck Yeager’s Advanced Flight Trainer. EA even branched out
into productivity software, publishing Deluxe Paint, one of the key
applications for the Amiga computer.
Initially, Hawkins had little regard for the wounded console
market, and felt that the personal computer would be the dominant entertainment
platform of the future. However, as the Nintendo Entertainment System brought
some stability back to the business, EA began its first in-house development
with Skate or Die, which was published by Konami in 1988. Electronic Arts
itself would not truly begin publishing console games until the era of the Sega
Genesis. "Once we were publishing for Genesis, we did go back and publish
a few titles for NES, like Skate or Die 2," said Hawkins. "But it was
a token effort. We did a lot more titles for SNES later on when it came out,
but the Genesis was the real focal point, because I negotiated such a favorable
deal."
Hawkins was cautious in dealing with Nintendo, seeing their
strict licensing terms as an impediment to EA’s profits. He also felt that
Nintendo's 8-bit hardware was underpowered. "Because we had been 100
percent on floppy-disc based computers with more RAM and full keyboards, our
technology base was well above the consoles," he explained.
John Madden Football and the Birth of EA Sports
"With my lifelong interest in football simulation, my
oldest friends would tell you that I founded EA to give myself an excuse to
make another football game," Hawkins said. "I designed the precursor
to Madden Football in 1970 as a board game called Accu-Stat Pro Football,"
a game that would be his very first entrepreneurial effort, funded by a loan
from his father. "After that I programmed another precursor to Madden as a
school project in 1973, that was written in BASIC and ran on a DEC PDP-11
minicomputer. It simulated the January, 1974 Super Bowl and predicted the
Dolphins would beat Minnesota 23-6, which was pretty good considering the real
game was 24-7."
EA had published an early football title called Touchdown
Football, but it was the success of One on One and its sequel that encouraged
Hawkins to make another attempt at an in-depth football simulation. To enhance
the game’s authenticity, Hawkins sought out Oakland Raiders coach John Madden
to help bring the complexity of pro football to life on the computer screen.
"I picked John because I wanted a design partner that
could help us make the game authentic but also have selling-power from his name
on the cover," Hawkins said. "After signing him, I flew to Denver
with my programmer and producer and went over my game design. We spent two
whole days on the train with him going over an incredibly long list of details
about football and it helped me finish the design properly. We'd get together
periodically after that initial session to review our progress, and John would
yell and scream about details we had wrong, and it was a lot of fun!"
Their hard work paid off when the game was released in 1988, establishing EA’s
longest running franchise.
Leverage
While EA was focusing most of its efforts on personal
computer publishing, the flat-lined console business was being systematically
revived by the determined efforts of Nintendo. By 1989, Nintendo’s sales had
grown to almost $2 billion, and EA could no longer afford to treat consoles as
a sideline. Other companies were also eyeing the market and later that year
Sega brought the 16-bit Genesis to America.
Like many third party publishers, EA was leery of the
console business. "Nobody liked paying high royalties under restrictive
licenses, and what made it even worse was having to build ROM cartridges at
great cost and inventory risk," Hawkins explained. However, with the
arrival of the Genesis, he saw an opportunity to once again rewrite the rules
of publishing.
"The Genesis appealed to me for many reasons, but a big
one was that it had an MC 68000 processor," he said. This chip was key
because EA had years of experience with the processor, which was also used in
the Macintosh, Amiga, and Atari ST computers. Electronic Arts was able to quickly
reverse engineer the Genesis and develop software that would run on it without
Sega’s help.
Using this knowledge as leverage in his negotiations with
Sega, Hawkins threatened to release games for the Genesis without a license
unless Sega agreed to more favorable terms for EA. It was a very risky move
that could have had expensive legal consequences. Fortunately, Sega recognized
the benefits of working out a deal with Hawkins. EA had an extensive back
catalog of quality games that could be quickly ported to the Genesis, and a
strong sports line that would be essential for the console’s success in
America. It was going to be a hard fight against Nintendo and Sega needed all
the help it could get.
The Genesis
Now that Hawkins had committed to consoles, he had to sell
his company on the decision. "It was very contentious because many
employees and developers did not like consoles, or did not like action
games," he said. "The goal was to stop making esoteric products for
an elite customer base, and go make it in the big-time with mainstream gamers.
Several employees were outraged and quit, but I convinced the team that if the
public chose to buy consoles like the Genesis, then to satisfy our customers we
had to make the best games possible on the platforms chosen by the public, not
the ones our engineers wished they could afford."
Electronic Arts had its Initial Public Offering in the fall
of ‘89 and used the influx of capital to push hard into console publishing.
"I was flogging my development organization to put three new games into
production every month for a year, plus we added twenty three games through
affiliates. Sega was blown away at how fast we built a dominant product
line," Hawkins said.
As EA aligned itself with the Genesis, a rush of games
commenced in 1990 with a port from the Amiga of Peter Molyneux’s Populous,
Budokan: The Martial Spirit, and John Madden Football. Over the six-year life
span of the Genesis, EA would establish several long running franchises,
including the Strike series, NHL Hockey, NBA Live, FIFA Soccer, and Road Rash.
Electronic Arts also brought complex strategy and RPG titles over from personal
computers. Titles such as Power Monger, Syndicate, Starflight, The Immortal,
Might and Magic II: Gates to Another World, Centurion: Defender of Rome, and
King’s Bounty appealed to older players, helping to widen the console game
audience beyond its kid orientation.
Transition
Things move quickly in the publishing business, and Hawkins
was already looking ahead. "After scoring a massively favorable license
with Sega, I knew I had a big bull's-eye drawn on my chest, because the console
guys would make sure I could never repeat what I had done with the Genesis. And
on the PC side, nothing was going on that would advance the cause of the gamers
and the game industry," he recalled.
Hawkins always had a keen awareness of technology cycles.
"I knew the Genesis would give EA a great ride at least until 1994, but
was afraid for what would happen after that," he said. Even as his company
was diving into cartridge-based games, Hawkins sensed that a future of fast
processors, low-priced memory, and easy to print CDs was just around the
corner. "I thought the industry needed a console to push forward with 3D
graphics and optical disc media and networking capability. Nobody was doing
anything, so it seemed like the window was open," he said. Wanting to
pursue development on the next generation of console hardware, Hawkins
appointed Larry Probst as EA's new CEO in 1991, and started a new company
called the San Mateo Software Group, which soon evolved into The 3DO Company.
Hawkins remained as Electronic Art’s chairman of the board until his
resignation in July of 1994.
When the 3DO came to market in 1993, EA’s Need for Speed
game was an early demonstration of the machine’s next generation graphics
technology. Electronic Arts was also a partner in Trip Hawkins’ new console
venture, and they published a variety of titles for the 3DO including John
Madden Football, Road Rash, and Wing Commander III: Heart of the Tiger. EA
contributed both proven franchises as well as new IPs such as Psychic Detective, Escape from Monster Manor and
Immercenary to the 3DO library. “3DO was able to raise some money and recruit
some big partners. But by 1993 Sony had made a $2 billion commitment to the
PlayStation, and even with all our partners we could not match what Sony was
willing to do. But the 3DO ended up being a catalyst for many constructive
changes. Even Sony executives admitted to me that they copied many aspects of
the 3DO licensing program,” Hawkins said.
After the failure of the 3DO console, Hawkins shifted the
business into game development for the PlayStation and PC but a succession of
lackluster titles ultimately sank the company. 3DO shut its doors in 2003 and
Hawkins quickly started a new venture called Digital Chocolate that focused on
publishing and developing games for the newly emerging mobile market.
Art and commerce have always been uneasy bedfellows, and
nowhere is that tension more evident than in the world of video games. Perhaps
after looking at the history of Electronic Arts under Trip Hawkins we may have
some insight into that hot point of ignition where business and inspiration
combine to create cutting edge games. As Hawkins explained,
"Entrepreneurship is a creative art form. Like other creative people, we
do it because we have to do it. We have no choice but to express ourselves in
this way. But of course like all artists we are optimists, so we believe good
things will come. It is not about making money, it is about making a
difference."
- Jeffrey Fleming
When this article was originally published on Gamasutra in
February of 2007 it included comments from Frank Gibeau, then Electronic Arts'
executive vice president and general manager of North American publishing,
discussing the history of post-Hawkins EA. I’ve left it out of this revised
version because as nice as he was to talk with me, he was careful to maintain
the corporate line and as a result was far less interesting than Hawkins.
Still, Gamasutra did a nice job on the layout and there are lots of interesting
photos and screen shots accompanying the original article. You can read it at:
Additionally, outtakes from my interview with Hawkins (some
of which have been incorporated into this revised version) were published on
GameSetWatch. You can read them at:








