choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. ♪ >> not clear, not clear. >> electronic arts conquering the videogame market making the top games in the world. battlefields and the stand, but in 2013, ea was labeled the worst company in america two years in a row as social and motive -- and mobile gaming took off. that is when andrew wilson stepped in. a lifelong gamer, musician, and surfer from australian has made

it -- has made a turnaround with ea announcing record earnings. 1.0, andrewn studio wilson. so let's start at the beginning of your time at ea. in 2013, the company was struggling in many ways, financially. the consumerist named you the worst company of the year two years in a row, but today, it is different. you have reported record profits. what did you do differently? andrew: i have been in the company since 2000. in 2013, they made me ceo. emily: i don't think that is quite true. andrew: somewhere in there is some truth. and we had struggled. and it wasn't because we were a company or because we made bad games. it's because we had lost our focus. we came in and we said what is , the most important thing? who facilitates us to do what we love, which is made games? which was our player.

so, we started every conversation for the longest time and continuing today is, is this good for the player? the worst company in america vote feels like an age ago now, but it's still at the forefront of our memory, is there was a bunch of stuff that we were doing they did not like. there was a bunch of stuff they expected us to be doing and we weren't. and when you run a public company, that's challenging and you have to make really hard decisions about how to make sure the games are great, scalable. emily: tell me some of the hard decisions you made? andrew: just after i got the role, we launched "battlefield 4." biggest first-person shooter game of the year. and it really struggled with scalability. just in the infrastructure. so we had to make a judgment call. we said, all right, we are not going to deliver more paid content until we fix this for our gamers. a year later, we were launching another battlefield game and it wasn't quite ready. and so, you know, if you follow our industry first-person , shooters always launch in the quarter of the year, right before holidays.

we had to make a decision for our players. we could launch it, but the game is not ready. so we held it. that was the big move to hold the biggest game in the biggest quarter and ship it six months later. and so, once players started to see that, they recognize we were serious. we have made a series of decisions like that in service of our player. the thing is, you look after them, they look after you. emily: you have a bunch of new games out this year. what are you excited about most this year? theew: we are in entertainment business, so everything we do is fun and exciting. but our ability to reach more and more people through new platforms, mobile, new games, new business models, and new geographies. more people play games now than ever before. and that's pretty exciting. when you start to get a point where you are not building for 100 million people, but 2.5 billion people, then you can do impressive and wonderful things. emily: so, you mentioned mobile. how much money are you making for mobile? andrew: mobile is a growing business for us. we had more downloads than any

other publisher last year. madden mobile is top of the charts. star wars galaxy of heroes continues to do really well. we got a new sims game coming. emily: do you wish you had a candy crush, angry birds? andrew: i don't wish for angry birds because it has been there and gone. i think candy crush is a tremendous game. the mobile business is tough, but we have a madden. it's right up there with candy crush. galaxy of heroes is right up up there with candy crush. and we fully expect that sims is a big opportunity for us. emily: meantime, the competitive landscape is changing and your competitors keep raising the bar. how would you describe the competition? andrew: it's the competition for time, not just people who make videogames, people who make movies, books, tv, music. it's sports we play, family time. what we are working on building

experiences that enhance all of those things? and so we are not trying to take , away from people's lives. we are trying to be additive to it. and in a world where people are ceing more things at one that they have never done before the notion that 24 hours in a , day is an impediment is no longer an issue for us. i look at my daughter who is five and does seven things at once. our job is how can we enhance their lives and enhance enjoyment and entertainment value. emily: it's interesting to hear you speak about games that way because i think the popular perception of games is that it is a time suck. they are not improving your lives, their detracting from them. especially as you get a generation of children getting their social and cultural cues from games. andrew: games allow you to build self-esteem by overcoming challenges. to have self-worth and self-actualization. we build sandboxes they give people the opportunity to create. when we think about why people

play games, immersion, social connection, competition, creation, self-improvement. these are all core motivators of why people play. what we see, for kids who play sports games, their sports iq is higher than professionals. emily: how did you get into the gaming business? andrew: i was kind of wondering around aimlessly. -- wandering around aimlessly. [laughter] andrew: no i had worked in the , internet business. i had been involved in content creation and creative. i was a very diligent sports person. i was involved with surfing, rugby, and cricket in australia, and there was a little studio from a company called electronic arts making a surfing gaming, and making a rugby game and making a cricket game, and had all these engineers, but did not really have anyone who knew about sports. and so i got the opportunity to , work for ea. i thought, this of the funding -- i thought, this will be fun for a while and then i would go , and get a real job. 18 years later, here i am. ♪ emily: women have been for so long underrepresented in game

makers and in gaming themselves. what kind of progress are you making? ♪

♪ emily: women have been for so long underrepresented in game makers and gaming themselves. not just underrepresented in it, but portrayed negatively. what kind of progress are you seeing? andrew: i think we're making tremendous progress. for the longest time, it was probably 90% males who play ed games, and 10% females. that was not an inviting environment. now it's almost 50-50. we have some work to do on the environment, but when we think about how we portray women in games, we added national women's teams in our fifa game. we added the wnba in our nba game. our lead character in star wars battlefront ii this year is a woman. we released a game called mirror edge, with really character was a woman.

these are not the women that you may not have seen in videogames 10 years ago. these are strong, powerful inspiring leaders that our young , women playing these games can look up to and be inspired by. know, there is not gratuitous violence against women. there is not -- the way we clothe them is appropriate. and that's really important to us. and that was not something we mandated as a company. it is something our company believed in intrinsically as a process. as we think about real represent ation of women inside of our games, it also means changing the representation of women inside our company. we are making headway there. we have a lot of great senior creative and business leaders, including members of our board. and the third, which is perhaps the greatest place we can have the impact, is inside of our communities. we reach hundreds and hundreds of millions of people around the globe and we are trying to foster an inviting and inclusive and diverse community among gameplayers.

and we are trying to change the conversation. and we believe i the leadership position we have, we can do that. and we are actively taking action around that. emily: online harassment is a problem in general, especially for women on social networks and in games themselves. how do we make the environment better for women inside these multiplayer communities? andrew: it is unacceptable. we believe in a diverse, inclusive environment for men and women, and other minority groups for that matter. games are for everyone. games should bring us joy and happiness and extend the wonderful things in our lives, and we are taking action. and our global community group spends every minute of every day looking at every conversation happening in and around our games, and looking for opportunities, not just to police the badness, but encourage the goodness. and as the father of a five-year-old girl, that's important to me. and as a father of a two-year-old son, i want him to grow up, understanding this is

not a boy or girl issue, it's an everybody issue. as a boy, i want him to grow up in support of things in service of his sister where she can be anything she wants. emily: the gamer gate campaign led to widespread harassment of women in the gaming industry on social networks. why do you think that happened? andrew: it was a multifaceted problem and very disappointing for me. in my role in our company and we worked really hard to try and quell that and move people on and help people understand. i think that when you get anonymity in the internet, people have a willingness to behave in a way that is unacceptable. and part of what we want to do is try to help people understand that it is not acceptable, and foster a more inclusive, diverse, and welcoming culture for men and women. emily would changing anonymity : and or requiring people choose their real names, is that an option? andrew: i think that's an internet problem.

we are going to do all we can to solve all the problems we can. and be a voice for change and a catalyst for the positive movement that is a diverse and inclusive culture. the mainstream community was criticized for not speaking up. was that fair? andrew: i think everyone who was involved in that was criticized by various parties. we came out and clearly stood by, for us, diversity, inclusion, both in our games, in our employee base, in our community. and we were very solid on that. and we will continue to do that. i don't spend a lot of time talking politics, but i do spend as much time as i can upholding the values of our company. there was an interesting study of behavior found that just kicking out the bad players didn't change so much, that the negative behavior continued. when did make a change was changing the bulls, trying to enforce the norms of positive

behavior. are you seeing that? andrew: well, a big part of what we see is that the appropriate representation of women in our games is a big change and a big shift, because not only does that act as an inspiration for young women who are playing our games, who see these characters in our games who are strong, and powerful, and independent, it also helps the boys playing our games that that's exactly as it should be as well. they should not be fearful of this. and they should not back away from this. world where we all have equal voice and equal position in the community, is a world we want to live in. so, we spend a lot of time trying to amplify that message among young boys and girls. that have seeing positive change. emily there is concern that : these issues could get worse as we move into virtual reality. there was a story about a woman being groped in virtual reality. is this a cause for concern? andrew: i don't know whether it is cause for concern. i think we have to be deliberate about how we make these moves

and deliberate about the behavior we condone in these environments. aboute to be deliberate the game designs, and how we facilitate interaction inside the virtual world because we do know there are people in this world, who don't behave the right way. and we can't be the global sensors of all behavior, but we have to be very deliberate about the behavior we encourage in our virtual worlds, and we are spending time thinking through at a design level, platform level, at an interaction level. emily: is virtual reality living up to the hype? andrew: hype is a weird and wonderful thing. [laughter] andrew: we all want virtual reality to be the being that we dreamed of as young people. we want to have the true ability to immerse ourselves in experiences that we would otherwise never have the chance to experience. we want to overcome a spatial disconnect between us and our tv

screen. we wanted to allow us to be people and do things we could not otherwise do. so anything that has innovative technology, consumer value proposition, low barriers has a big opportunity. emily: so, tell me about your vr efforts and ar efforts. andrew: so vr, we very quickly added that to our capability to our core engine. we have a single engine for all our games. we launched our vr experience last year with battlefront and are working on a mobile game. we have both ends of the spectrum. we really went about it and said, what do we have to do? we have to understand how to develop at a core engine level. let's implement that. but then the other big challenge for us is designed. the three biggest categories in games are action-adventure first-person shooter, and , sports. and all of this required a run around in space. all of which is challenging inside of vr right now.

emily: we have seen pokemon go, location-based services, what do your ar efforts look like? andrew: pokemon go gave us a sense of what might be possible. it was kind of a catalyst for thought. when we look at ar and the there he is things apple and google are providing for us in mobile, think about any information that might overlay an experience to enhance that experience. that might be geolocation, other things that you do in your life, what your friends are doing, what's in your calendar, what is in your fridge. and so, when we are looking at right now is how many strings of information does any player have available to them and how might , they use those streams of data to extend and enhance their experience? so that when i am playing the sims, the amount of eggs in my fridge might have an impact of how my sim's fed. it might mean when i am playing madden mobile, when i'm at a game i have access to different

players then i do when i am not at again. might mean that if i in that soccer practice, i'm rewarded for all the things i do at soccer practice: i get back to playing my fifa game. we are thinking about this notion of mixed reality not just in terms of geo-services, but how many streams of data are available and how might we use those to streams -- use those streams of data to enhance the playing experience? emily: we have not seen cloud-based gaming takeoff. there is no netflix of gaming , yet. does that change? ♪

♪ emily we haven't seen : cloud-based gaming take off. there's no netflix of gaming, yet. does that change? andrew: you know, i think the greatest disruptor to the consumption of entertainment media has been the combination of streaming plus subscription. it as change the way we watch tv, the way we listen to music, read books.

the notion that it wouldn't impact our industry, i think is naive. will it take a little bit longer? yes. for a bunch of reasons, file size, level of interactivity, design. when you listen to a led zeppelin album on your phone, or in your car, or on your pc at home, it does not change. when we design a game that lives in a streaming world, we have to think about screen size and session time. how does a madden in the cloud manifest on your mobile phone? how does that manifest on your 60 inch tv, and how does it manifest on the dashboard of your car as you drive to work? it's a design challenge there. so we got technology challenges with bandwidth and file sizes. and we got design challenges from screen to screen, moment to moment gameplay. but i do believe it will play an important part in our world in the future, the same way it does in movies, tv, music, and books.

emily: your competitors are selling franchises to their games for tens of millions of dollars. what's ea's strategy? andrew: we launched our second year for madden competitive gaming. we were the first partner of an official sports league with all teams and all players involved. we are very excited about that. we are going into the second year of our fifa competitive gaming, and we have also announced that we battlefield competitive gaming coming. we saw exponential growth and engagement. players who engaged in competitive modes engaged at three times the rate of people that didn't. so we have maintained for some time that competitive gaming is a way to engage a player base. and the two greatest positive motivators of human behavior -- social connection and competition. emily: how big do think e-sports will be? andrew: human beings love to watch anything where the best in the world are doing it, and the

stakes are high. take something that literally 2.5 billion people do on the planet, and you have an audience ready to engage. and what we are seeing now is the great players a moment to .5 billion players are rising to the top, and the stakes are high. -- those 2.5 billion players are rising to the top and the stakes are high. when you watch our games being played, it's true entertainment. they are the best in the world doing it and the stakes are high. and i think that is going to be big. molly: "rogue one" did half the box office of the force awakens. overall merchandise sales are slower than when disney first came out with the reboot. can the second "star wars" battlefront game do as well as the first? andrew: what they said about our first battlefront game was this is an amazing game, but it needs to be bigger, broader, deeper, it needs a single player campaign, it needs space battles, more complexity in player evolution inside the game. so we have built a game that is , three times the size of the first one.

it is three times broader, three times deeper, it has space battles, a single player campaign. we are doing everything we can -- we are doing everything in our power to deliver to our very, very large "star wars" community to give them the game they want. molly how do you think about the : potential to deepen your relationship with disney? andrew: we have a great relationship with disney. they have some wonderful ip. if there was an opportunity to do more with them, we would because they have in wonderful partners. and i think we complement what they do. if there is an opportunity, we would jump at the chance. emily: would there ever come a day when you don't release new titles on your franchises every year, and just release online content, like take two with grand theft auto? andrew: the short answer is yes. there is a few different things that have to happen we do a lot first. in fifa game and a lot with madden game. there is a lot of code we make available as part of the new iteration. but in korea or china, we don't

do it that way. every four years, we release a new big code drop and offer incremental change over time. so what we see in korea and china and what we see on mobile, that is a world that might happen in other parts of our business. emily: apple has been pushing to become a bigger platform in games. it still hasn't happened. do you think that will happen for apple? andrew: the app store is a big business. and up until recently, games have been the lion's share of that business. what we are starting to see is subscription services like spotify netflix, youtube, tidle , rise to the top of the app charts, and that's partly because apple and others understand that subscription is a really, really valuable way to engage with the consumer base. valuable for the person providing the subscription, and value for the subscriber. it is a friction-free way of ingesting large amounts of content.

and so, i think they are doing a great job. and i think you will see gains continue to be a big part of their app store. but what you might start to see is a business model around games change. and we're getting ready for that. emily: how will the business model change? andrew: if you think about, free to play is a wonderful business model in mobile. that has allowed mobile to become as big as the console platforms in terms of overall game revenue. but we are seeing a propensity for app store users to engage in netflix and spotify and tidal, and pandora and random dating apps. and they're doing that through subscription. and so, we're looking at the business and saying is there a , way we can offer great values to players through subscription and mobile? and i don't think we are there get high but it's something we , are looking at. emily: where is ea in five years? andrew: hopefully they still , have an australian has ceo. [laughter] andrew: i think what you will

see from us as result of our pioneering innovative spirit, as a result of our consumer focused, but we are one of the great entertainment companies. and that we have delivered wonderful gaming experiences to an ever growing ever in gauging population of gamers of all genders and all backgrounds. and people will look at us and think, that is a great company, and i am very happy to have them as part of our lives. emily: all right, andrew wilson ceo of electronic arts, hopefully ceo in five years. andrew: we will see. [laughter] emily: thank you for being on "bloomberg studio 1.0." andrew: thank you very much. ♪

♪ emily: he cofounded tpg, one of the largest private equity firms in the world. jim coulter along with david bonderman got their start by investing in a bankrupt continental airlines in 1993. today, tpg has its hands in everything from j.crew to movie studios, health care in china, and cell towers in southeast asia, and two of the most prominent tech unicorns -- uber and airbnb. as these companies take longer to go public, tpg's investment strategy is undergoing a new evolution in the era of private markets. joining me today on bloomberg