EA is famous for producing some your all-time-fave games like The Sims, Need for Speed and...oh yeah, FIFA!
Background: EA (which stands for Electronic Arts) is the American video game company worth a whopping US$39 billion. It's famous for producing some your all-time-fave games like The Sims, Need for Speed and...oh yeah, FIFA!
What happened: FIFA - or the Federation Internationale de Football Association - is kinda like the United Nations...of soccer. And EA and FIFA have been BFFs (aka partners) since 1993, making magic with their FIFA video game.
What else: EA's made around US$20 billion in sales from the partnership, and FIFA's cashed in around US$150 million each year from its licensing agreement. But according to the New York Times, the pair are set to call it quits. FIFA wants to find a new partner that can help it tap into in-game micro-transactions.
💡In-game micro-transactions are purchases of virtual items for small amounts of cash. Ya know, when you pay a few buckaroos for some new dribbling skills, weapons or a cool new outfit for your player.
💡Historically, gaming companies have had a few revenue streams:
But micro-transactions have shaken things up - particularly for free-to-play games.
💡All at once, video game companies could generate more revenue...and give gamers greater flexibility over how they play.
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