Electronic Arts Names Executive to Lead E-Sports Division

Electronic Arts Inc. tapped a top executive to lead a new effort aimed at expanding the company's stake in competitive videogames, or e-sports.

The publisher of hit franchises such as "Madden NFL" and "The Sims" on Thursday said Chief Operating Officer Peter Moore will lead a new division dedicated to the fast-growing niche. He will hold on to the COO title until the end of March, EA said, declining to discuss plans for a possible successor.

E-sports is one of the hottest trends in videogames, with teams of professional gamers across the globe vying for millions of dollars in prize money, financed by game companies and sometimes other players buying virtual goods. Championship matches are held in big sports arenas that draw thousands of spectators, while millions more watch online through apps and websites such as Amazon.com Inc.'s Twitch and Alphabet Inc.'s YouTube Gaming. A tournament for the game "Dota 2" that ended in August had an $18 million prize pool. A finals match for the game "League of Legends" in October attracted 36 million online and television viewers.

As interest surges, the business of competitive videogames is itself growing more competitive. Activision Blizzard Inc. said in October that it was creating an e-sports division led by Steve Bornstein, a former head of Walt Disney Co.'s ESPN. In September, Time Warner Inc. announced plans to create an e-sports league featuring live Friday night broadcasts on Turner Broadcasting.

EA said its new e-sports division will develop live competitions with franchises such as "Madden NFL," "FIFA" and "Battlefield." It plans to broadcast major tournaments online and will seek broadcast or cable deals. The group also will look to develop new competitive games, drawing on EA's development studios. Todd Sitrin, senior vice president of marketing and a 14-year EA veteran, will lead strategy and operations, reporting to Mr. Moore.

EA has been organizing e-sports competitions for more than a decade, but remains a small player. It is hoping to make e-sports a more significant source of revenue by dedicating several hundred employees to the effort over time.

Mr. Moore said EA hopes to generate revenue from ticket sales from live events, as well as advertising and corporate sponsorships. One big challenge, he said, is demonstrating the potential to traditional marketers unfamiliar with the notion of watching other people play videogames. "There's still a bias at the upper levels of brand marketers, who may be a little older," he said.

EA also hopes the e-sports division will boost sales of its games, as people watch pros play them. "Anything that increases player engagement, the more copies of the game will be sold," Mr. Moore said.

Write to Sarah E. Needleman at sarah.needleman@wsj.com

(END) Dow Jones Newswires

December 10, 2015 16:45 ET (21:45 GMT)

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