Soccer’s world governing body has severed its licensing agreement with Electronic Arts Inc. for the hugely successful video game that has raked in billions of dollars over the past three decades.
“That is the only place that you can have an authentic, famous and fully representative football experience,” David Jackson, vice president of brand for EA SPORTS FIFA, told The Associated Press. “I do think that there is an element of potential confusion in the marketplace.”
How that will be achieved is far from clear, although FIFA does hold the rights to the biggest soccer show on earth. The World Cup will disappear from the EA game. “New entrants would face a steep licensing curve to compete with EA,” said Andrew Marok, an analyst covering the digital media sector at investment bank Raymond James.
“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 the best-selling games in the marketplace,” EA told investors. “While it’s difficult to think there won’t be at least some impact from the brand shift to sales, the $150 million available from the absence of a license fee to FIFA provides ample room for marketing to drive awareness around EA Sports FC,” Karnovsky wrote.
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