“EA Sports… it’s in the game.” You may recognise that iconic line which is heard as you reload FIFA – perhaps after a frustrating rage quit from a difficult round of FUT Champs! Since its kickoff in 1993, FIFA has firmly established itself as a global sports gaming sensation. Whether you’re a devoted football fan, a casual player, or someone uninterested in the sport, you will have likely heard of the game. So what’s behind FIFA’s unending popularity, and what have been the implications of the recent breakdown in the partnership between Electronic Arts (EA) and FIFA?

The Evolution of FIFA

In 1993, FIFA made its debut in the gaming world with “FIFA International Soccer.” Within just a month, it sold a whopping 500,000 copies while operating within a budget range of $50,000 to $100,000. Three years later, backed by a $3 million budget, “FIFA Soccer 96” quickly became the UK’s best-selling game. It introduced real legends such as Romario, Bebeto, and Baggio, replacing the fictional player names of previous editions. When FIFA 09 released, it introduced the Ultimate Team game mode as a $10 add-on and drew in 1 million users, thereby generating a huge profit. Furthermore, the financial success and popularity induced by Ultimate Team has been sustained since its release in 2009. Indeed, the game mode’s player base has expanded to 9 million as of 2022. 

This demonstrates that FIFA has become the most popular sporting game largely due to its uniqueness. For example, it was the first sporting game to adopt an isometric view (a two-dimensional representation of a three-dimensional object) and thus beat out all its competitors, solidifying FIFA’s position as the ultimate sports video game.

How does FIFA generate its money?

FIFA generates revenue through various channels. One such channel is microtransactions, which take place through the purchase of the game itself and through in-game purchases. Capitalising on Ultimate Team’s global popularity, EA releases new special cards and events annually which you can only use by buying newer FIFAs. This further incentivises people to purchase the latest editions of the game. For example, in the 2021 fiscal year, Ultimate Team generated $1.62 billion in revenue for EA (accounting for 53% of the company’s total extra content revenue.)

Gambling in Disguise? 

In recent years, however, Ultimate Team has been under scrutiny due to its ‘player packs’ (which players can spend real money on in the hopes of getting top players). This practice has been likened to gambling, and has thus led to debate about how the mode may take advantage of neurodiverse people or those with gambling tendencies. In 2018, the Belgian government placed an explicit ban on ‘FIFA Points’ (the in-game currency you pay for with real money) under the pretext that these microtransactions violated gambling laws. Despite this, the game mode still remains a huge revenue driver.

Breakdown of a long-term partnership

The partnership between FIFA and EA sports has been a significant reason behind the economic success of the video game. FIFA has generated more than $20 billion in sales over the past two decades and this is largely due to the use of real-player names, advanced software, and clubs and competitions that mirror the actual footballing world. This has been made possible through licensing deals with various stakeholders. However, the recent breakdown of EA and FIFA’s partnership in 2022 marked the end of this long-term commercial relationship. This entails that, while the game itself hasn’t changed much, EA Sports is no longer allowed to use the FIFA name on its games. Nevertheless, EA have again secured several licensing agreements with footballers, teams, and leagues, resulting in their newest football game (“EA FC 24”) being essentially the same as prior editions.

Newfound Success

The launch of “EA FC 24” has shown that the franchise is still going strong; EA reported a 4% rise in net bookings ($1.82 billion) for the final quarter in the 2023 fiscal year. The game reeled in 14.5 million active accounts within the first four weeks of its launch and the mobile version was installed by over 11 million people in the first 10 days, demonstrating how the breakdown of the partnership with FIFA has not hurt the game’s financial success.

In conclusion, the economic success of FIFA is underpinned by many factors such as in-game purchases, technological advancements and a reliable player base. The FIFA series has been a major revenue driver for EA, and the game’s ongoing success is only growing. The recent launch of “EA FC 24” has further cemented the game’s popularity. A continuation of the game’s economic success in the future however likely depends on the evolving landscape of eSports and the shifting global perceptions of the eSports sector, which will likely present many opportunities to the franchise in this rapidly growing market.