The Business of Battlefield

54 Pages Posted: 7 Aug 2012

See all articles by Nick Fessler

Nick Fessler

University of Texas at Tyler

Date Written: August 6, 2012

Abstract

This case places students in the context of the video game industry, and a competition between the best-selling video game in history (the Call of Duty series) and Electronic Arts’/DICE’s directly competing product, the Battlefield series. The case enables instructors to help students better understand the business side of a segment of the entertainment industry of which many of our students participate.

In the context of a parent and subsidiary organization in the video game industry, the case is intended to better familiarize students with the riskiness and complexities of the video game industry and to help students better understand transfer pricing and “what-if” analysis in the context of the video game industry. Topics that can be discussed in detail or in brief include: transfer pricing, what-if analysis, ROI calculations, product line evaluation, and consolidated financial statements (analysis of parent/subsidiary results). The ultimate decision in the case involves the evaluation of an investment (the purchase of a business).

Keywords: Video game industry, Battlefield, Parent/subsidiary, Return on investment, Transfer pricing, What-if analysis

JEL Classification: M11, L82

Suggested Citation

Fessler, Nick, The Business of Battlefield (August 6, 2012). AAA 2013 Management Accounting Section (MAS) Meeting Paper. Available at SSRN: https://ssrn.com/abstract=2125548 or http://dx.doi.org/10.2139/ssrn.2125548

Nick Fessler (Contact Author)

University of Texas at Tyler ( email )

Tyler, TX
United States
903-565-5733 (Phone)

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