Infantino has gambled: “Fifa” will soon be called “EA Sports FC” – economy

“FIFA” is now “EA Sports FC” – but otherwise nothing changes. You have to make big comparisons, in this case to the unforgettable Raider/Twix commercial from the 90s, to understand what just happened in the football and video game industry: The negotiations between the world football association Fifa and the game manufacturer EA Sports have finally failed, after three decades the incredibly successful cooperation will end after the Women’s World Cup next year and will not be extended.

You could say: Oh, it’s just a video game. Add to that some capitalist numbers they’ve always been fond of, in both industries: EA Sports has made more than $20 billion from this series over the past 20 years, the world governing body gets $150 million a year in royalties. With 325 million units sold, it is the most successful sports video game series in history according to the “Guinness Book of Records”, the single format “FIFA 12” is the sports game with the highest sales within a week with 186 million dollars.

In view of the 150 million active players, there are also the aspects of pop culture phenomena that are difficult to measure: when tennis player Daniil Medvedev throws himself to the ground after his US Open victory, says “L2 plus Left” and thus the key combination for the dead fish cheers means – what is such a moment worth? Or if someone is not even that interested in football, but because of gambling with friends they know that Niklas Süle will switch from FC Bayern to Borussia Dortmund? When multiple video game world champions Dennis and Daniel Schellhase, better known as “FIFA Twins”, become ambassadors for the 2006 World Cup in Germany?

Apparently, FIFA has overdone itself in its demands

The question therefore, of course: Who has gambled? The short answer, as unbelievable as it may sound: the world association, which is likely to lose significantly more than EA Sports as a result of the failed deal and has little chance of winning anything. Yes, the manufacturer may lose this name, which for many is more synonymous with a video game than with the federation (just as many no longer know that John Madden, namesake of the EA Sports football sim, was a genius coach ), but otherwise the company keeps pretty much everything that makes the series legendary – and even wins.

“It’s about the question: What more can we do for the players?” said Andrew Wilson New York Times. He was once a Fifa engineer, he is now the head of EA Sports and recently negotiated personally with Fifa boss Gianni Infantino in order to get an extension after all: “But it’s also about the questions: How can we add more game modes introduce? How can we reach more players? How can we grow beyond the limits of the actual game?”

Now it’s getting interesting: Fifa is said not only to have demanded a doubling of the license fees to 300 million dollars per year, but on the one hand that only the partners of the world association should be seen in the field of video games – an approach that is also used, for example, by the so-called “ban miles” around World Cup stadiums. On the other hand, Fifa wanted to position its brand differently, for example by making it available to other manufacturers of football simulations. A statement from the world association now states that Fifa wants to diversify its game rights and thus offer “football and game fans more choice”.

It sounds a bit like a heartbroken deserter claiming that he can now date a lot of other people – because yes, EA Sports is losing that name that is inseparable from the game, and it’s losing the right , to offer a football World Cup in the game, however, retains numerous other elements over almost 300 other licensing rights, and exclusively: those in the English Premier League, for example, the German Bundesliga, the Italian Serie A and the Champions League – and thus also the rights at more than 19,000 players, 700 clubs and 100 stadiums.

Even more: Without the restrictions of Fifa, EA Sports can now enter into cooperation with companies that were previously not allowed. For example, sporting goods manufacturers, and Nike’s Twitter entry on Tuesday afternoon showed what that means. Translated it reads: “Football, may I introduce you to the future? We are proud to partner with EA Sports FC and shape the future of the beautiful game. More then in June 2023. Are you ready?” EA Sports could now expand into other areas, such as ticket and jersey sellers or betting providers, but nothing is officially known about this yet.

EA Sports has ingeniously combined three elements

To understand why Fifa needs the series more than the other way around, you should know how the games became a pop culture phenomenon. There have been some wonderful soccer simulations: “Sensible Soccer” (1992), for example, with the simplest gameplay and grandiose tackling; or “Kick Off 2” (1990), which allowed several shot variants despite only one button. Or “Virtua Striker” (1995), the first simulation with 3D characters. Or “Actua Soccer” (1995), which captured the movements of Sheffield Wednesday players using motion capture technology. And of course the “Pro Evolution Soccer” series, for a long time the big EA Sports competitor because of the better gameplay.

EA Sports has ingeniously combined three elements. First: These rights, which it has owned and aggressively marketed since 1993; in the 2006 ad, for example, which said, “Haven’t you dreamed of the perfect shot? When the whole nation holds its breath? You’re Wayne Rooney. You’re Ronaldinho. You’re a star!” It was the promise of being able to gamble like the megastars, later combined with the opportunity to integrate your own likeness into the game and score the most goals as a star of your favorite club.

That was the lure for casual gamers, for whom “FIFA” became a playground, just like football pitches are for real soccer players. Around this time, the company improved the gameplay in such a way that “FIFA” became the variant for professional gamers and was used at video game events. The third aspect: pop culture references – so if a video showed up on social media in which amateur soccer players performed a crazy cheer like “Dead Fish”, it was soon to be seen in the video game (and later at the US Open because of Medvedev).

EA Sports has a quasi-monopoly on football simulations, and the group also knows how to market this; for example, through card-like “player packs” that players can use to improve their teams. Or about creating worlds beyond soccer, like other video games like “Fortnite” or “Roblox” do. So the game itself shouldn’t change much, as the past few years have shown: small improvements, often cosmetic or in the gameplay – and people still buy.

Fifa has been trying to monetize digital change for years, with rather mixed success. Gareth Sutcliffe, video game expert at Enders Analysis, succinctly sums up what just happened: “EA will keep going. They have the technical means, they have the intellectual property of an amazing game, they have the marketing opportunities. The Fifa has: the name – and otherwise?” Of course, this is also a statement about a fundamental problem for the world association.

This is not good news for Fifa boss Infantino, who is ironing out all the scandals surrounding himself and the association with the prospect of higher income – this is how he wants to secure his third term as president. Now, however, he loses an annual three-digit million amount and a reliable partner, an adequate replacement is currently not in sight. Another “FIFA” variant will be released in autumn, after which the advertising slogan could be: “FIFA” is now called “EA Sports FC”, but otherwise nothing will change – at least for EA Sports.

source site