Electronic Arts Introduces 'FC 24' Soccer Game After FIFA Split
Electronic Arts (EA) has unveiled its latest soccer game, 'FC 24', marking a fresh start for the company after its split from FIFA.
The partnership between EA and FIFA, which lasted nearly three decades, ended due to disagreements over payment terms.
Without the FIFA brand, 'FC 24' lacks the same level of visibility and marketing support. However, EA is confident that the new title will maintain the momentum of its best-selling franchise and serve as a buffer against a potential industry slowdown.
Analysts believe that the success of 'FC 24' is crucial for EA, as the franchise is estimated to contribute significantly to the company's sales and market value, which currently stands at $32 billion. Joost Van Dreunen, a lecturer at NYU's Stern School of Business, stated that the end of the high-profile partnership creates an uncertain future for EA, with both gamers and investors closely monitoring the situation.
To enhance the appeal of 'FC 24', EA has introduced new features such as cross-platform play and HyperMotion V technology, which utilises real footage data to program in-game movements. The game is available in two editions: the standard edition priced at $69.99 in the United States and the ultimate edition priced at $99.99.
The split from FIFA is expected to provide 'FC 24' with a larger marketing budget, as EA can now allocate more resources to promote the game. The company previously spent less than 10% of its budget on marketing before losing the FIFA name and analysts predict that this figure could double to 16%. Michael Pachter, an analyst at Wedbush Securities, expressed confidence that sales will not suffer, with EA anticipating only a small decline of around 5%.
EA's Ultimate Team game mode, which allows players to purchase card packs to build their virtual teams, has been a significant revenue driver for the company. This has been particularly beneficial as other EA games, such as Apex Legends, have experienced a slowdown due to the post-pandemic environment. In the previous quarter, EA missed net bookings expectations and implemented a 6% workforce reduction in March.
Electronic Arts has launched 'FC 24', its first soccer game without the FIFA tag.
The split from FIFA has left 'FC 24' without the same level of visibility and marketing support.
The success of 'FC 24' is crucial for EA, as the franchise contributes significantly to the company's sales and market value.