EA Accelerates Into Asia

Electronic Arts (ERTS Quote) has been struggling to get into the game in Asia, where revenue steadily declined last year and the company has had few hits.

Now the leading video-game publisher in North America has a plan: EA is buying its way into the continent, one company at a time.

On Monday, the company announced its latest deal, a 15% stake worth approximately $167 million, in one of China's largest online game operators, The9(NCTY Quote).

The two companies also inked a licensing agreement that gives The9 exclusive publishing rights for EA's sports game FIFA Online in mainland China.

It's the second such investment that EA has made in the last three months. In March, the Redwood City, Calif.-based EA said it would take a 19% stake in Korean online game company Neowiz for about $105 million.

The investments will help EA get a strong distribution presence in Asia and build partnerships that could enable the company customize its games for a new audience, say analysts.

It also signals EA's understanding that the Asian video-games market is moving away from packaged software boxes toward online games.

"Asia is a very different market, and EA has to buy into that market," says Billy Pidgeon, an analyst with industry research and consulting firm IDC.