FIFA plans to charge EA Sports nearly a billion dollars annually for the FIFA license used in its video games.
EA Sports recently announced that they are seriously considering changing FIFA’s name, which is one of the most popular and profitable franchises in the world.
Days later, session PolygonThey also echoed the Electronics Art (EA), UK and EU trademark registrations, which have sparked speculation about the name of the videogame: “EA Sports FC”.
Even though nothing is yet confirmed, there may be a compelling explanation from EA Sports about its intentions to get rid one of its most iconic brands.
Information provided by The New York TimesIt is clear that there is an important dispute between a video game developer, and the world football organization. This dispute stems from the cost of using rights and new sources of income.
According to the American newspaper, FIFA plans to charge EA Sports around a billion dollars per year for the FIFA license used within its video games.
The organization decided to limit the licensing monetization routes to only what is in the game, as this was not sufficient.
According to The New York Times this would mean that EA’s revenue-generating strategies related to “real games highlights, arena game tournaments and digital products such as NFT” would be simply halted.
These could be compelling reasons for FIFA to drop the brand of a highly-positioned franchise on the market. It could still be a smart decision considering the company’s future plans.
FIFA would have had 25 million players until May. EA Sports, with all its titles, wants to increase its user base to 500,000,000 players in the next 5 years. This goal is complicated by the new conditions that the international soccer association has created.
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