On Tuesday, Electronic Arts Inc announced the official end of its nearly three-decade-long video-gaming partnership with FIFA.
The move comes after months of tense negotiations in which FIFA officials reportedly demanded $1 billion from the company for its licensing rights.
According to the New York Times, their 29-year partnership was set to end after this year’s World Cup in Qatar, but has now been extended to include the Women’s World Cup next summer.
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EA CEO Andrew Wilson has promised that the final game will be the best yet.
After that, the video game company plans to launch EA Sports FC in 2023, an interactive form of gaming in collaboration with more than 300 soccer partners.
Because of separate licensing agreements with their teams and leagues, the new game is expected to feel similar to the millions of FIFA video game players around the world.
According to the BBC, it will likely allow players to watch real-life matches, participate in Fortnite-like in-game events, and access a wider range of branded in-game items.
However, major FIFA events such as the World Cup will be excluded.
‘The worlds of football and entertainment are changing, and they collide within our product,’ said David Jackson, vice president of EA Sports.
‘In the future, our players will expect us to be more expansive in that offering.’ We currently engage in play as our primary form of interactive experience.
‘Watching and creating content will soon be equally important for fans.’
‘Under the licensing conventions that we had agreed with FIFA ten years ago, there were some restrictions that would not allow us to build those experiences for players,’ he explained.
Nonetheless, EA shares fell nearly 3% in afternoon trading following the news, despite the fact that the company is expected to report its quarterly results after markets close on Tuesday.
Soccer games have long been a favorite among millions of players worldwide, attracting both casual gamers and esports fans. Over the last two decades, the game has sold more than $20 billion.
However, as FIFA and EA’s most recent agreement – signed ten years ago – was about to expire, FIFA officials demanded more from the video game company, according to the Times.
It aimed to at least double the $150 million it receives each year from EA Sports, its largest commercial partner.
‘They have all the technological smarts, the creative implementation of an absolutely fantastic football game – and it really is fantastic.’
‘But what about FIFA? Their given name. ‘What happens next?’
EA has already signed up 19,000 athletes, 700 teams, 100 stadiums, and more than 30 leagues for future games.
It has over 300 licensing agreements with world soccer organizations such as UEFA, which runs the Champions League, as well as domestic leagues and competitions worldwide.
These collaborations will allow EA to continue using the names and likenesses of not only players, but also famous clubs and prominent players.
According to the Times, if FIFA seeks another video game partner, they will be limited in their options because two of the world’s largest club competitions – England’s Premier League and European soccer’s elite Champions League – will only be available to EA Sports FC players.
‘EA Sports is a long-term and valued partner of the Premier League, and we look forward to continuing to collaborate in the new era,’ said Richard Masters, the Premier League’s chief executive, in a statement announcing the split.
It also included remarks from officials representing Europe’s and South America’s governing bodies, as well as the heads of the German and Spanish Leagues.