BusinessmanElectronic ArtsAppleFounder

Trip Hawkins

Trip Hawkins is an American entrepreneur and investor recognized for his foundational contributions to the video game industry as the founder of Electronic Arts, The 3DO Company, and Digital Chocolate.

1. Early Life and Background

Trip Hawkins's early life laid the groundwork for his future in the technology and gaming sectors, characterized by an early entrepreneurial spirit and a unique academic focus.

1.1. Childhood and Education

William Murray "Trip" Hawkins III was born on December 28, 1953, in Pasadena, California. As a teenager, Hawkins exhibited an early interest in business and gaming, venturing into his first entrepreneurial endeavor. He borrowed 5.00 K USD from his father to establish a company aimed at creating a knockoff version of the popular Strat-O-Matic Football pen and paper game. He advertised his game in NFL game programs, but the business ultimately failed. This early experience, however, sparked his interest in creating a digital football game, envisioning a system where complex in-game calculations could be handled internally by a computer, simplifying the experience for players.

Hawkins pursued higher education at Harvard University, where he designed his own undergraduate major focused on Strategy and Applied Game theory. Around 1975, Hawkins estimated that it would take approximately seven years for home computer saturation to reach a point where game design could become a viable career path.

2. Career at Apple

Hawkins's career in the technology industry began at Apple Computer, where he held a pivotal role before embarking on his own ventures. He joined Apple in 1976, recruited by Steve Jobs and Mike Markkula. As the company's first MBA hire, he was granted 0.5% of Apple's total stock. With the immense success of the Apple II, his shares accumulated significant value within a few years, which he eventually sold to secure the initial capital for his independent ventures. By 1982, Hawkins was serving as the Director of Strategy and Marketing at Apple Computer. His departure from Apple to establish Electronic Arts was reportedly met with disappointment by Steve Jobs, who described it as an "act of betrayal."

3. Founding and Operation of Electronic Arts (EA)

Electronic Arts, founded by Trip Hawkins, revolutionized the video game industry by introducing a new business model and fostering collaborative game development.

3.1. EA Establishment and Early Strategy

Hawkins left Apple Computer in 1982 to found his own video game publishing company, originally named Amazing Software, which was officially established on January 1, 1982. The company was later renamed Electronic Arts (EA) in 1983. Hawkins pioneered a "Hollywood-style" business approach within the game industry, which was a significant departure from the prevalent one-person development model. He envisioned a paradigm where teams of artists, designers, and programmers would collaborate on complex projects, with EA managing the marketing and sales aspects. This strategy aimed to elevate game development to a professional, collaborative art form, akin to filmmaking.

Hawkins in 1987, during his leadership of Electronic Arts.
Hawkins in 1987, during his leadership of Electronic Arts.

3.2. Key Achievements and Innovations

Under Hawkins's leadership, EA achieved numerous success, fundamentally changing the landscape of video game development. One of his earliest and most significant achievements was signing John Madden, the legendary American football coach and commentator, as a spokesperson and consultant for EA's football game. This collaboration led to the creation of the hugely successful Madden NFL sports video game series, which became one of the most enduring and profitable sports video game franchises globally. Hawkins is widely credited with spearheading the games industry's evolution during this period, transforming it from simple, often solo-driven creations into sophisticated, team-based projects.

3.3. Relations with Nintendo and Sega

During the early years of the console market, Electronic Arts, primarily a computer software company, was hesitant to engage with Nintendo's stringent licensing policies. Hawkins recognized an opportunity when Sega released its new console, the Sega Genesis. Rather than paying licensing fees, he strategically hired a team to reverse-engineer the Genesis system, enabling EA to produce unlicensed games for it. Hawkins eventually revealed this endeavor to Sega, proposing a partnership to challenge Nintendo's dominance. He asserted EA's strong legal and technical position, stating, "You can sue, but we did the tech fair and square and have great lawyers. So make us an official licensee. And give us a reduced rate." Anticipating that Hawkins might share his technical findings with other third-party companies, Sega agreed to the terms, granting EA an official licensing partnership with favorable conditions.

4. Founding and Operation of The 3DO Company

After achieving substantial success with Electronic Arts, Trip Hawkins shifted his focus to the hardware sector, establishing The 3DO Company to develop a new video game console.

4.1. 3DO Console Launch and Market Reaction

In 1991, while remaining chairman of the board at EA, Hawkins transitioned to form The 3DO Company, a venture focused on creating an advanced video game console. He officially resigned from EA's board in July 1994. 3DO was established through partnerships with several other companies, including EA. Upon its release in 1993, the 3DO console was technologically the most powerful video game system of its era, featuring robust hardware and support for CD-ROM format.

However, its market performance was significantly hampered by its exorbitant launch price of 599 USD, which was substantially higher than other major systems available for under 200 USD. Sales were poor, also due to a perceived reliance on full-motion video sequences, which, though state-of-the-art at the time, often overshadowed gameplay quality. Hopes for the system further diminished with the arrival of the Sony PlayStation and Sega Saturn in 1994. Although these competing consoles were also expensive, they offered more modern hardware and stronger first-party game support. Despite the 3DO's commercial failure, Next Generation magazine recognized Hawkins as "one of the game market's visionaries" in their "75 Most Important People in the Games Industry of 1995."

4.2. Business Transition and Bankruptcy

In 1996, facing poor sales, 3DO halted the development of its console system and pivoted to become a pure video game developer, creating titles for platforms such as the PlayStation, PC, and other consoles. Hawkins continued as chairman and CEO of the company and took on the additional role of creative director. He focused on brand development and implemented aggressive 6-to-9-month production timetables for games. This accelerated schedule, however, severely impacted game quality and, consequently, sales.

Hawkins had previously used cash reserves to save the struggling company, but he ultimately declined to do so one final time. Due to persistent poor sales of its titles, The 3DO Company filed for bankruptcy in May 2003. The defunct company sold the majority of its intellectual property, including the popular Might and Magic franchise, to the publisher Ubisoft. Trip Hawkins, however, retained ownership of the 3DO console hardware and software.

Trip Hawkins in 2013.
Trip Hawkins in 2013.

5. Founding and Operation of Digital Chocolate

In late 2003, following the bankruptcy of 3DO, Hawkins launched a new video game development company called Digital Chocolate. This venture strategically focused on creating games for handheld devices, anticipating the rise of mobile gaming. The company developed a range of titles tailored for the burgeoning mobile market. Hawkins served as the CEO of Digital Chocolate until May 2012, when he stepped down from the position.

6. Later Career and Advisory Roles

After his tenure at Digital Chocolate, Trip Hawkins continued to be an active figure in the technology sector, taking on various board and advisory roles. In 2012, he joined the board of directors for Extreme Reality, an Israeli technology company specializing in motion control software that can interpret 3D movement using only a 2D camera. The following year, on March 20, 2013, Nativex, a mobile advertisement technology platform for games, announced Hawkins as a senior advisor to their board of directors. In December 2014, he also became a strategic advisor on the advisory board of Skillz, a prominent mobile esports platform.

7. Founding of If You Can Company

Hawkins's most recent entrepreneurial endeavor is the If You Can Company, which he founded with a mission to leverage games for social good. This startup focuses on fostering social and emotional development in children, aiming to teach valuable life lessons such as compassion and anti-bullying. The company's inaugural game, "IF...", utilizes a free-to-play model and is specifically designed for use by teachers and students within an educational environment, emphasizing its pedagogical goals.

Trip Hawkins in 2019.
Trip Hawkins in 2019.

8. Educational Activities

Beyond his entrepreneurial pursuits, Trip Hawkins has also contributed to academia. From 2016 to 2019, he served as a professor of entrepreneurship and leadership at the University of California, Santa Barbara, located in Santa Barbara, California, where he resides. In this role, he shared his extensive business experience and insights with students, contributing to academic and practical business education programs.

9. Awards and Honors

Trip Hawkins has received significant recognition for his profound impact on the video game industry. In 2005, he was honored with induction into the Academy of Interactive Arts & Sciences Hall of Fame, becoming the eighth individual to receive this prestigious accolade. This award acknowledges his pioneering vision and enduring contributions to interactive entertainment.

10. Assessment and Impact

Trip Hawkins is an influential figure whose career has significantly shaped the video game industry, marked by both visionary success and notable business challenges.

10.1. Positive Assessment

Hawkins is widely regarded as a visionary entrepreneur who played a crucial role in the early development and professionalization of the video game industry. His establishment of Electronic Arts and its "Hollywood-style" development approach transformed game creation from individual efforts into complex, collaborative projects involving dedicated teams of artists, programmers, and designers. This model elevated game development and set new industry standards, leading to the creation of iconic franchises like Madden NFL. His strategic foresight in areas such as licensing and market analysis enabled him to demonstrate his business acumen and ability to navigate a rapidly evolving market.

10.2. Business Challenges and Criticisms

Despite his successes, Hawkins's career also faced significant business challenges, particularly with The 3DO Company and Digital Chocolate. The 3DO console, while technologically advanced for its time, struggled immensely in the market due to its high price point and a perceived lack of high-quality games that over-relied on full-motion video, ultimately failing to compete effectively with more affordable and content-rich rivals like the PlayStation and Sega Saturn. The company's subsequent transition to a game developer also faced issues, as accelerated production schedules led to compromised quality and poor sales, culminating in 3DO's bankruptcy in 2003. Later, Digital Chocolate also experienced quality issues and downsizing. These challenges reflect the inherent risks in the volatile technology and gaming sectors, and the difficulties in maintaining consistent quality amidst aggressive business strategies.