Electronic Arts Chases the Wii

"Nintendo is a formidable force to compete with software-wise because they know their market, their console and their consumer better than anyone else," he says.

But EA's Schappert says the company understands the nuances of creating games for Wii gamers, who tend to be younger and more casual gamers.

That's why EA is diversifying through games like the music-based game Boogie and a new wholly owned game, Playground, for the Wii, he says. 'We are certainly tailoring these games to a different demographic of the next-generation console gamer," says Schappert.

The strategy is to offer a mix of its existing popular titles and new ones created exclusively for the Wii, he says.

Turning the EA ship may not be easy. So far, results from the Wii have been weaker than anticipated, estimates Mike Hickey, an analyst with Janco Partners.

In the second half of fiscal 2007, EA posted $93 million in sales of games for Sony's PS3 console, compared with $65 million from the Wii. Janco Partners does not have an investment banking relationship or own shares of Electronic Arts.

EA's plans for the Wii will work, but only to an extent, says Gartner's Baker. With the company's main competency in sports franchises and complex games, the company just isn't built to cater to the casual fan.

"With the Wii, they might not get the attach ratio [purchased games per console] they get with PS3 or the Xbox," says Baker. "The ratio for the Wii is likely to be lower because it is a different demographic that is using this console in a different way."

Though EA hopes to have one of its Wii games break into the top-10 charts by fall, there will also be some tough competition out there -- Nintendo plans to come out with two big games, Super Mario Galaxy and Super Smash Bros. Brawl, later this year.