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Allocating capital for new products

Nick Earl, Arcadia Kim and Erin Turner, Electronic Arts

Earl talks about how the majority of the products at EA are sequels that are released every year. The main decision for EA on these projects is budgeting how many people to work on each every year, he says. Occasionally, there is a new product idea. This idea must pass a lot of market opportunity analysis before it is launched because it is very expensive and risky to build a new product. Still, new products are seen as a critical part of the future of the company, he adds.