Electronic Arts Inc. is tapping an insider, Andrew Wilson, as its next chief executive, signaling to investors it plans to stay the course amid a tumultuous period for the industry.
Mr. Wilson, 39 and originally from Australia, has worked at EA for 13 years in countries such as Korea and Canada, and has led the company’s online games division. Larry Probst, the company’s executive chairman, said Tuesday that the board selected Mr. Wilson for his creative skills and business acumen.
He will be taking over the Redwood City, Calif., company during an upheaval in the videogame industry. As more people play inexpensive games on mobile devices, retail sales of console titles in the U.S. have fallen precipitously for well over a year.
EA has sought to weather the storm by recently cutting costs and pushing out new titles, but has struggled with the quality and reliability of online services for some games.
In an interview, Mr. Wilson, an avid surfer and devoted practitioner of Brazilian jujitsu, said he believed the company’s existing strategy is sound and pledged to continue investment in games for new consoles, mobile devices and PCs. He also said he plans to keep pushing the company into developing free-to-play business models and into expansion in emerging markets.
“When I think about our vision for the future, we have a very strong strategy around the ongoing development of the most amazing teams in the world,” he said.
Investors were unmoved by the appointment, sending the company’s stock down 14 cents in after-hours trading to $27.46.
Mr. Wilson’s appointment caps a six-month search for a new leader following the sudden ouster of John Riccitiello, a seasoned executive who also co-founded investment firm Elevation Partners.
Mr. Riccitiello said then he agreed to step down due to “shortcomings” in the company’s financial results.
EA’s shares had fallen nearly two-thirds from when he was named chief executive in 2007 to the announcement. The company’s shares have risen more than 45% since then.
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(Published Sept 17, 2013 in The Wall Street Journal.)