FIFA takes on EA Sports video game in soccer's new rivalry

name “FIFA” can bring to mind images of World Cup and soccer’s greatest players, like Pele, Zinedine Zidane or Lionel Messi. acronym for sport’s governing body may also remind some of shameless bribery and corruption.

For many, though, it’s video game that is synonymous with FIFA.

For three deces, Switzerland-based soccer body has enjoyed a flourishing, mutually beneficial relationship with EA Sports. annual edition of video game, alongside related products, has raked in billions of dollars and has proven to be so lucrative that FIFA thinks it can be making even more on its own.

FIFA severed licensing deal partnership with Electronic Arts Inc. on Tuesday, making FIFA23 last new EA game with involvement of both sides.

y are now becoming opponents.

EA will continue to make soccer games with best players and biggest teams, y will just be stripped of FIFA brand and inste called EA Sports FC.

Confusingly, perhaps, FIFA24 should also be on shelves next year because soccer body is determined to go ahe with its own launch.

EA has alrey begun to highlight its vantages over FIFA game, given it has rights to show 19,000 players from more than 700 teams in more than 30 leagues playing in 100 stiums. Manchester United, Barcelona and Paris Saint-Germain will still be re, along with ir best players.

“That is only place that you can have an auntic, famous and fully representative football experience,” David Jackson, vice president of brand for EA SPORTS FIFA, told Associated Press. “I do think that re is an element of potential confusion in marketplace.”

hyperbole from FIFA is alrey trying to undercut EA’s marketing by claiming it is in talks with multiple rival gaming companies and has plans to enter metaverse.

“I can assure you,” FIFA President Gianni Infantino said, “that only auntic, real game that has FIFA name will be best one available for gamers and football fans.”

How that will be achieved is far from clear, although FIFA does hold rights to biggest soccer show on earth. World Cup will disappear from EA game.

“ FIFA name is only global, original title,” Infantino said. “FIFA 23, FIFA 24, FIFA 25 and FIFA 26, and so on — constant is FIFA name and it will remain forever and remain best.”

That kind of bombastic talk puts pressure on FIFA to deliver on Infantino’s vision for a game that usurps EA franchise despite not having rights to feature leagues such as Premier League — and teams that play in m.

“New entrants would face a steep licensing curve to compete with EA,” said Andrew Marok, an analyst covering digital media sector at investment bank Raymond James.

Soccer gaming is big business for EA. annual report issued this week showed revenue of $6.19 billion.

“We’ve just h our biggest year — ever — for EA SPORTS FIFA games,” EA Sports CEO Andrew Wilson told investors on Wednesday, a day after it was announced FIFA deal would cease at end of year.

A huge part of revenue comes from Ultimate Team mode, where customers buy extra content in EA sports games. That generated $1.623 billion in 2021.

“We have historically derived a significant portion of our net revenue from sales related to our largest and most popular game, FIFA, annualized versions of which are consistently one of best-selling games in marketplace,” EA told investors.

Brand loyalty will be key starting next year. Will gamers stay with EA’s rebranded product or jump to rival being launched by FIFA?

It’s alrey a competitive market with eFootball, former Pro Evolution Soccer game produced by Japanese firm Konami. That game has a partnership with Manchester United, though record 20-time English champions will still feature in EA’s game through a Premier League agreement.

EA has alrey warned its investors of risks to its soccer gaming business from rivals.

“Any events or circumstances that negatively impact our FIFA franchise, such as product or service quality, or products that take a portion of consumer spending and time, delay or cancellation of a product or service launch, increased competition for key licenses, or real or perceived security risks, could negatively impact our financial results to a disproportionate extent,” EA said in its annual report.

EA should get an edge over FIFA by retaining its 300 license partners, 30 leagues and federations, 700 teams and 19,000 athletes, JPMorgan analyst David Karnovsky said in a client note.

“While it’s difficult to think re won’t be at least some impact from brand shift to sales, $150 million available from absence of a license fee to FIFA provides ample room for marketing to drive awareness around EA Sports FC,” Karnovsky wrote.

Untangling itself from world of soccer politics has its benefits for EA. Tensions between regional confederations have led to European body UEFA and South American counterpart CONMEBOL circumventing FIFA to launch ir own meeting of champions. debut of Finalissima will see Italy and Argentina meet at Wembley Stium in London on June 1. It would seem incongruous for EA to promote its FIFA game at match.

“What name would we put on a perimeter board in a UEFA-CONMEBOL event? It’s really tough for us to put FIFA on re,” said Jackson, EA’s vice president of brand. “What has previously been a springboard for our brand, and an accelerant to it many years ago, has just become less valuable to us over time.”

EA might just have saved FIFA brand as well. fond association with video game by so many fans has balanced against toxicity of Sepp Blatter-era organization after opening of sprawling criminal investigations into soccer corruption in 2015.

“If you ask a young football fan what FIFA is, y’re more likely to say a video game than y are global governing body, but that value lives with us, I believe,” Jackson said. “We are predominant voice in world of football from an interactive entertainment perspective, and we don’t see a world where that changes.”