If you enjoy playing blockbuster video games like FIFA, Madden NFL, The Sims and Battlefield, you have one visionary entrepreneur to thank – Trip Hawkins. Trip founded Electronic Arts (EA) back in 1982 and served as the company‘s first Chief Executive Officer for nearly a decade. During that time, he pioneered the business of gaming as we know it today. Let me walk you through the remarkable origin story of EA and its legendary founder.
The Earliest Days of EA
First off, yes Trip Hawkins was the very first CEO and leader of EA. He founded the company in 1982 after leaving Apple, where he was an early employee.
Trip had become frustrated that Apple wasn‘t aggressively expanding into the home computing market. A passionate gamer himself, Trip saw the potential for home gaming to explode in popularity as personal computers proliferated. He decided to strike out on his own to realize this vision for interactive entertainment.
According to video game history archives, Trip started EA in May 1982 with an initial personal investment of $200,000. He first named the company Amazin‘ Software but wisely changed it to Electronic Arts just a few months later in November 1982.
So at just 28 years old, Trip gambled on his instincts to bring together his love of gaming and business. Little did he know how EA would revolutionize gaming!
Trip Hawkins‘ Vision and Leadership Style
Trip believed from day one that video games would become a new artistic medium equal to books, music and film. As EA‘s first CEO, he pioneered developer-centric policies to empower creative talent.
For example, Trip made sure developers were treated like rockstars and paid royalties based on game sales. This was unheard of in the early 80s! He also personally recruited legendary developers like John Madden, Bill Budge and Don Daglow to realize his vision.
Trip ran EA very differently from traditional companies – with a start-up energy and lavish parties reminiscent of early Apple. But it worked! By keeping the focus on groundbreaking games and asking developers what they needed, Trip built one of the greatest gaming companies ever.
EA‘s Massive Growth in the 80s
It‘s amazing to look back at how quickly EA became a gaming giant under Trip‘s leadership in the 80s. Let‘s look at some key milestones:
- First game was Hard Hat Mack (1983)
- Reached $6 million in revenue in Year 1
- Went public after just 2 years in 1984
- Acquired rights to iconic games like Tetris, Madden, FIFA, and The Sims
- By 1987, EA was the fastest growing U.S. company with over $100 million in sales
Just take a look at this revenue growth!
| Year | Revenue |
|---|---|
| 1983 | $6 million |
| 1987 | $100 million |
| 1989 | $200 million |
And EA‘s stock boomed right alongside sales. Adjusted for splits, EA stock went from around $7 at their IPO to over $70 per share by 1991.
Trip‘s visionary leadership and developer-first mentality fueled incredible growth. This transformed the gaming landscape forever.
Handing over the Reins
With great scale comes great complexity. By 1990, EA had grown from a start-up into a global corporation with over $500 million in revenue.
Some analysts questioned whether Trip‘s entrepreneurial approach could sustain EA as it continued expanding. And reports surfaced about creative differences between Trip and other execs.
So in late 1991, Trip stepped aside as CEO passing the reins to Larry Probst. Probst had been with EA since 1984 as VP of Sales where he expanded their global distribution.
This transition made sense for EA‘s new phase. An entrepreneurial visionary founder like Trip is perfect for the early chaotic years. But operational specialists like Probst are often better suited to lead established large companies into maturity.
EA‘s phenomenal growth continued under Probst through the 90s. And Trip remained very involved as Chairman of EA‘s Board until 1994. He also founded EA spin-off companies like 3DO and Digital Chocolates.
EA Leadership Over the Years
EA entered a new epoch after Trip handed over leadership in 1991. Here is a quick overview of other key EA CEOs since then:
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Larry Probst (1991-2007) Oversaw major acquisitions and growth in 90s and 2000s
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John Riccitiello (2007-2013) Helped reshape EA‘s brand and push into digital distribution
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Andrew Wilson (2013-Present) Current CEO, leading EA into cloud gaming and live services era
Though no longer CEO, Trip left an indelible mark on EA‘s culture of creative risk-taking and trailblazing. His influence can still be felt today in EA‘s willingness to push boundaries and transform gaming.
EA Today – A Global Leader
Let‘s fast forward to today. EA has evolved into a global gaming empire, though Trip would still recognize its innovative spirit. Some key facts about the EA of today:
- Value of around $35 billion with over $5 billion in annual revenue
- 7,600 employees worldwide across 30+ development studios
- 300 million players around the world
- Developed groundbreaking new IP like Apex Legends (2019) which attracted 50 million players in its first month
Additionally, many of EA‘s most popular franchises can trace their lineage directly back to the 80s:
| Franchise | Launch Year |
|---|---|
| Madden NFL | 1988 |
| FIFA | 1993 |
| The Sims | 2000 |
| Battlefield | 2002 |
Trip‘s creative spirit and developer focus lives on! 40 years later, his leadership in those critical early days still provides the foundation for EA‘s continued success.
Andrew Wilson Continues the Journey
Okay, let‘s talk about EA‘s current CEO Andrew Wilson. Wilson took the reins in 2013 at just 39 years old after 17 years rising through the ranks at EA.
First impressions – Andrew seems to "get" what makes EA special thanks to his deep experience across their biggest franchises. According to insiders, he focuses on creating an environment where creative talent can thrive.
This reminds me a lot of Trip Hawkins‘ approach. And Wilson faces similar challenges balancing innovation vs operational efficiency at a large corporation.
Financially, EA is as strong as ever under Wilson. He has grown EA‘s market value from around $5 billion to over $35 billion in less than a decade as CEO.
Wilson has also overseen shrewd acquisitions of developers like Respawn Entertainment and continued expanding powerhouse franchises like FIFA and Madden. As a CEO, he seems to be doing a lot right!
What about his net worth? Given his generous executive compensation, Wilson has amassed a sizable fortune estimated between $30 to $50 million. Not bad for someone under 50! Most of this net worth comes from his substantial equity stake in EA.
So while Trip Hawkins founded EA back in 1982, I believe he would be proud to see leaders like Andrew Wilson continuing the journey today. EA seems well positioned for many more decades of success.
Conclusion
Let me wrap up with some key insights on the early days of Electronic Arts:
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Trip Hawkins founded EA in 1982 and served as CEO until 1991
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His visionary leadership and developer focus fueled massive growth in the 80s
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EA went from $0 to $500 million in sales in Trip‘s first decade
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Transition to operational leaders like Larry Probst made sense as EA scaled further
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Today, EA is a $35 billion gaming empire but still empowering creative talent
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Andrew Wilson continues Trip‘s legacy as CEO since 2013, with a net worth around $40 million
So in summary, Trip Hawkins was the legendary founder and first CEO who pioneered EA‘s success. His entrepreneurial spirit still permeates EA today nearly 40 years later.
Let me know if you have any other questions about EA and the origins of this incredible gaming company! It‘s a remarkable story of vision and risk-taking changing an entire industry.
