Final Breakdown of License Renewal Talks Between FIFA and EA
FIFA Demands More Than Double the Previous License Fee from EA
EA Plans to Relaunch Under the Name 'EA Sports FC'
The FIFA soccer game series will disappear in the future. This is Kylian Mbappe of Paris Saint-Germain, the cover model of FIFA 22. [Image source=EPA Yonhap News]
[Asia Economy Intern Reporter Kim Gun-chan] The FIFA series, an electronic arts (EA) soccer game that excited soccer fans, will disappear after 30 years.
The New York Times (NYT) reported on the 10th (local time) that the license contract extension between EA and FIFA has been finally broken. The contract was scheduled to end right after the Qatar World Cup held in November this year, but it will be maintained until the Women's World Cup next summer. EA announced that it will rename and re-release the game as ‘EA Sports FC’ instead of ‘FIFA’ in July next year.
Since its first release in 1993, the FIFA series has been called the synonym of soccer games and loved by soccer fans. The accumulated sales over the past 20 years exceed $20 billion (25.6 trillion KRW), and the number of game users is estimated to be about 150 million worldwide.
Although the name will change, the game content is expected to be maintained. Players can still play with world-class clubs like Real Madrid, Liverpool, or star players like Lionel Messi and Son Heung-min. This is because EA has signed individual license contracts with professional leagues and clubs in each country. However, FIFA-organized tournaments such as the World Cup will no longer be included in the game.
The amount EA provided to FIFA annually as license fees was $150 million (about 190 billion KRW). However, during the renegotiation process, FIFA demanded EA to more than double the existing license fee, which ultimately led to the breakdown, according to NYT. FIFA is reportedly planning to launch a new soccer game in 2024. FIFA President Gianni Infantino told NYT, “I can guarantee that the only game with the FIFA name will be the best game for gamers and soccer fans.”
However, NYT analyzed that while this license contract failure could be a new opportunity for FIFA, it will not be easy to follow EA’s game. Currently, EA virtually monopolizes the soccer game market. In this situation, it is difficult for FIFA to find a new partner.
In fact, the English Premier League and the UEFA Champions League, regarded as the most popular leagues and tournaments worldwide, can only be played in EA’s ‘EA Sports FC’. Richard Masters, CEO of the Premier League, said in EA’s FIFA withdrawal statement, “EA Sports is a long-term and valuable partner of the Premier League, and we look forward to continuing to work together in the new era.”
Technology such as graphics that implement the game is also evaluated as being ahead by EA. Gareth Sutcliffe, senior analyst in the gaming sector at Enders Analysis, said, “EA has creatively implemented fantastic soccer matches through technology, but FIFA has nothing except their name.”
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