Electronic Arts (EA) is the leading sports game publisher operating in Western markets. Its sports game division, EA Sports, develops and operates some of the biggest sports franchises, including EA Sports FIFA, which has sold over 325 million units to date, and Madden NFL, which has grown at a CAGR of 60% over the last 10 fiscal years. It’s perhaps unsurprising then that EA outlined in its recent Q3 FY21 earnings that it wants to grow its exposure to the sports games market and this stance was reflected through a series of announcements.

Extending existing license relationships and broadening reach of FIFA games

The company aims to grow the football/soccer sub-genre through its well-established FIFA football game franchise. EA has secured ongoing content for its football sim games through a multi-year extension of its UEFA Club Competitions license, giving the company exclusive rights to the UEFA Champions League, UEFA  Europa League and UEFA Super Cup.

EA is also planning a multi-platform expansion: FIFA 21 will arrive on Google Stadia in March 2021 and six football-focused mobile games are currently in development. FIFA Online 4, a free-to-play PC title largely available in Asia, will also be expanded to 15 more markets including Russia, Poland, and Turkey, where it is expected to reach a potential 80m players.

Revisiting old licenses and a major acquisition

Aside from FIFA, EA secured a licensing deal with CLC to exclusively create its first college (American) football game since the company’s decision not to renew the licence in 2013. This will include the rights to more than 100 sports teams, but not student-athlete names or likenesses. EA also revealed the strategic rationale behind the Codemasters acquisition, outlining an intent to use the company’s strong portfolio of racing games to accelerate growth, particularly in North America and Asia.

Why is EA doubling down on sports games? 

EA Sports games already drive overall engagement and net bookings, so continuing to invest in the sports genre isn’t a huge surprise. For example, FIFA Ultimate Team matches grew by 177% year-on-year, whilst Madden NFL and NHL saw engagement rise year-over-year. Ampere estimates that EA Sports FIFA is a $2 billion contributor to the company’s annual net revenue.

The pandemic introduced a multitude of consumers to the games market through sporting content. As physical matches were cancelled, sports fans could remain connected to their hobby through gaming. This highlighted a large pool of consumers who could potentially play EA content. There is also significant inherent overlap with esports, a growing part of the games sector.

To access and keep said players interested in the long-term, EA is choosing to develop content orientated towards consumers who would not typically interact with a main line FIFA game on PC or console; evident in the mobile games venture where multiple genres, such as arcade and simulation, are being explored.