Why is FIFA changing its name and what are the benefits of doing so?

May 10 will be remembered as one of the most significant events in the video game industry in 2022. After months of rumors and speculation, Electronic Arts announced that from 2023 FIFA will change its name to EA SPORT FC. Now, to get to this point, we had to go through a series of events that are worth remembering, because they triggered a situation that, frankly, was unimaginable just a few years ago.

Before continuing, we must first make one thing clear: regardless of the personal tastes of each player, FIFA It is one of the largest video game franchises.. Year after year, it occupies a leading position in global sales, closely competing with other giants such as Call of Duty D Grand Theft Autoto mention just a couple. It is for this reason that the name change, but above all the consequences that this movement brings, cannot be taken lightly.

Why is EA dropping the name that has accompanied its sports franchise for 30 years? The reasons are more complex than you might think. We need to go back to October 2021, when EA took the call for investors to say the first big news: they were considering a name change FIFA. The above is due the current licensing agreement with FIFA, the body that governs football worldwide, was coming to an end.. Specifically, in 2023, after the World Cup in Qatar.

In these cases, it would be normal to think that both organizations will sit down at the negotiating table to conclude a new agreement that will expand their relationship and satisfy everyone. The problem is that FIFA, knowing about the success of the game, wanted to Take advantage of the extension to line your pocketsLike never before. It’s no secret that this organization puts business first.

FIFA financial requirements

According to information from The newspaper “New York TimesFIFA requested $1,000 million for a four-year license renewal (World Cup cycle). However, since this type of contract is usually signed for 10 years, EA had to shell out $2.5 billion. The figure is obviously terrible; even for EA, which is a multi-million dollar company. In addition, this more than double than what they paid under the previous agreement.

But apart from the economic demands, FIFA also intended to limit the scope of their brand with the help of EA.. This is mainly due to the fact that the American company uses this name in official competitions and even in the game mode, which itself generates income. I mean of course FIFA Ultimate Team. In short: FIFA wanted to charge different licenses for each offer.

Since FIFA terms were already on the table, Electronic Arts had to analyze them in detail. Was it really worth shelling out $2.5 billion for “just” a name? You must remember that team competitions, local competitions and player licenses are not discussed with FIFA.

The key moment when the name change was seen as a real possibility was when Andrew Wilson, the CEO of Electronic Arts, launched an internal campaign to convince employees not to take the deal. And so abandon the brand FIFA. These were the director’s statements, filtered VGK:

“Basically, what we get from FIFA in a year without a World Cup is four letters on the front of the box, in a world where most people no longer see the box because they buy the game digitally.”

Andrew Wilson

After several posts showing genuine romance, EA has confirmed that they will not be renewing FIFA’s license. The game will change its name after 30 years. From a sports organization through its president Giani Infantinothey also had words for breaking

“I can assure you that the only authentic and real game that bears the name FIFA It will be the best thing available to the players and fans.”

Giani Infantino

Pros and cons of abandoning a brand FIFA

Now that it’s official, we can analyze what are the advantages of not renewing the FIFA license. All is not well for EA, however, as there is also a key downside that could hinder growth. EA SPORT FCat least in the beginning.

In February, Andrew Wilson stated that the FIFA license did not allow them to introduce a number of innovations that they wanted to improve with their sports title.

“Our players tell us they want more cultural and commercial brands in their markets that are relevant to them…brands like Nike. But since FIFA is partnering with Adidas, we can’t do that. Our players tell us they want more game modes, different things than 11v11 and different types of games. I would tell you that it was not easy for us to get FIFA to recognize the types of offerings we want to create because they say our the license only covers certain categories. They tell us they want us to move very fast. And for that, we need a certain level of freedom to be really creative, innovative and experimenting in the market.”

Andrew Wilson

From his statement, we can understand that EA SPORT FC will break down all those creative and commercial barriers which FIFA has imposed on its license. How will this affect the gameplay? The new franchise may feature modes and improvements that players have been asking for for years. On the other hand, EA has leeway to innovate in modes and business models. The EA SPORTS FC presentation makes it clear:

“This new independent platform will provide new opportunities for innovation, creativity and development. This is much more than just a name change – as EA SPORTS, we are committed to making EA SPORTS FC a symbol of change.”

adviser

But before realizing the benefits of not having a brand, EA will have to face an undeniable reality: FIFA It has great solidity and recognition. Undoubtedly it will be very difficult for Electronic Arts to position EA SPORT FC. Today, almost everyone associates “FIFA” with a football video game, and not so much with the body that governs the sport.

So the company you will have to spend a lot of effort and investment on marketing for people to know EA SPORT FC as successor FIFA. For those of us in the video game industry, whether it’s the press or consumers who usually stay up to date with industry developments, this won’t be a problem. But things are changing for that casual public that knows nothing but the player who occupies the cover.

It may take a few years for people to forget this name. FIFA like a football game, provided EA’s marketing succeeds…