Electronic Arts Inc (EA) is an independent developer and publisher of interactive entertainment software for advanced console systems. It is involved in developing, marketing, publishing, and distributing video game software and content for its consumers. The company classifies its business operations into two categories: Full Game and Live Services and Other. In terms of platform, the company generates revenue from the console, PC and other, and mobile. In FY2023, the company generated 59.8% of its revenue from the console platform, with PC and Other contributing 23.3% and mobile accounting for 16.9%. The company undertakes international publishing operations in Switzerland, with offices located across Europe, Australia, Asia, and Latin America.

EA recognizes the critical importance of research and development (R&D) in maintaining a competitive edge in the rapidly evolving industries in which it operates. As a leading global interactive entertainment company, EA is dedicated to delivering a continuous stream of innovative products, services, and technologies to the marketplace. EA's R&D efforts are centered around developing new technologies that can enhance existing offerings and expand the range of its products and services. One notable area of focus is the development of self-learning artificial intelligence (AI) for their games. By leveraging AI technology, EA aims to create immersive and engaging gaming experiences that adapt and respond to players' behavior and preferences. The company's R&D expenses encompass a range of costs incurred by its production studios. These expenses include personnel-related costs, overhead costs, external third-party development costs, contracted services, and depreciation. For fiscal year 2023, EA reported R&D expenses of US$2,328 million, accounting for 31% of its net revenue. This represents a 6% increase, or US$142 million, compared to the previous fiscal year (2022), where R&D expenses were US$2,186 million, also representing 31% of net revenue. The increase in R&D expenses for fiscal year 2023 can be attributed to several factors. Firstly, EA invested an additional US$56 million in personnel-related costs, signaling a continued commitment to expanding its in-house talent pool and supporting the growth and development of its studios. However, this increase was partially offset by decreased variable compensation and related costs. Another contributing factor to the increased R&D expenses was a US$30 million increment resulting from hedging activities. This suggests that EA engaged in financial hedging to manage risks associated with its R&D projects or investments, ensuring a more stable financial position. Furthermore, there was a US$14 million rise in studio-related contracted services, indicating that EA sought external expertise and resources to supplement its internal capabilities and expedite the development process. In summary, EA's R&D initiatives play a vital role in its ability to compete successfully in dynamic industries. By investing in R&D, particularly in areas like self-learning AI, EA aims to deliver innovative and captivating products, services, and technologies. The increase in R&D expenses for fiscal year 2023 reflects the company's ongoing commitment to pushing the boundaries of interactive entertainment and providing exceptional gaming experiences for its customers.