First1000: How Electronic Arts Acquired Its First 1000 Users

In this edition of First1000, we explore the exciting early days of Electronic Arts (EA), a company that went on to shape the future of the video game industry. From its innovative approach to game development to acquiring its first users, EA’s rise is a fascinating story of bold vision and strategic execution.

The Founding Story of Electronic Arts

Electronic Arts was founded in 1982 by Trip Hawkins, an entrepreneur with a passion for both business and gaming. Before founding EA, Hawkins worked at Apple, but he left the company with a dream to create a new kind of video game publisher—one that would empower game developers and treat them like artists.

Hawkins envisioned a world where video games were seen as a legitimate form of entertainment and where the creators behind the games were celebrated as the "rock stars" of the industry. His revolutionary vision led to the formation of EA, with the mission to market games in the same way that record labels promoted musicians.

EA's first hires were mostly from Hawkins' network at Apple, and he quickly assembled a team of talented engineers and marketers. The company’s strategy was to focus on computer games, which were rapidly gaining popularity at the time, and they aimed to publish high-quality games with the help of developers who were given creative freedom.

Ingenious Tactics to Acquire the First 1000 Users

Getting EA’s first 1000 users required a combination of innovative marketing, partnerships with developers, and a bold approach to game publishing:

1. Promoting Developers as Stars: Unlike other game publishers at the time, Hawkins treated game developers as creative artists. EA put the names and faces of developers on the front of game boxes, giving them celebrity status. This strategy appealed to both the developers themselves, attracting top talent to EA, and gamers who became more invested in the creators behind their favorite titles.
2. High-Quality Marketing Campaigns: EA invested in slick, professional marketing right from the start, which helped differentiate it from other companies in the emerging video game industry. Their advertisements emphasized the creativity and artistry behind each game, positioning EA as the publisher of sophisticated, high-quality titles. This allowed EA to gain the trust of early adopters and stand out in a crowded market.
3. Focusing on Computer Games: While many competitors were focused on consoles like Atari, EA concentrated on creating games for personal computers. This was a relatively untapped market at the time, and EA was able to establish itself as the go-to publisher for PC gaming enthusiasts. By targeting a more tech-savvy audience, EA quickly built a loyal user base.
4. Innovative Packaging and Presentation: EA innovated by using album-style game packaging that mirrored the look and feel of music records. This not only gave their products a premium aesthetic but also made the games feel more collectible and important. The unique packaging attracted early buyers, helping EA secure its first 1000 customers.
5. Direct Relationships with Retailers: Hawkins and his team worked closely with retailers to ensure EA games were prominently displayed and marketed well in stores. Their professional packaging and creative marketing campaigns helped EA gain prime retail space, boosting early sales and visibility.

With these strategies, EA quickly found success and began to grow its user base. By treating video games as an art form and positioning developers as the stars, EA distinguished itself from other publishers and built a strong foundation for its future growth.

Electronic Arts Today

Today, Electronic Arts is one of the largest video game companies in the world, responsible for iconic franchises like FIFA, The Sims, Madden NFL, and Battlefield. As of 2024, EA is publicly traded on the NASDAQ under the ticker symbol EA, with a market valuation of approximately $34 billion. The company continues to be a leader in the gaming industry, with a strong presence in both traditional gaming and emerging fields like eSports and mobile gaming.

What is First1000?

First1000 is a series that dives into the early growth stories of some of the world’s most successful companies. By examining how these businesses acquired their first 1000 users, we uncover valuable lessons in entrepreneurship, product development, and marketing that can inspire today’s startups and innovators.