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· Posted on
February 21, 2024

You might wanna sit down for this...mum and dad (aka EA and FIFA) are splitting up

EA is famous for producing some your all-time-fave games like The Sims, Need for Speed and...oh yeah, FIFA!

What's the key learning?

  • EA (Electronic Arts) is the American video game company that's been partners with FIFA (Federation Internationale de Football Association) since 1993
  • But FIFA wants to find a new partner that can help it tap into in-game micro-transactions...so it's calling it quits with EA
  • In-game micro-transactions are purchases of virtual items for small amounts of cash.

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.  

So what's the key learning?

💡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:

  1. The sale of the game, and
  2. Ads within the game

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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