{"id":16126,"date":"2016-11-17T17:41:47","date_gmt":"2016-11-17T22:41:47","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/how-eas-fifa-changed-the-game\/"},"modified":"2016-11-17T17:44:49","modified_gmt":"2016-11-17T22:44:49","slug":"how-eas-fifa-changed-the-game","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/how-eas-fifa-changed-the-game\/","title":{"rendered":"How EA\u2019s FIFA Changed the Game"},"content":{"rendered":"

Context \u2013 The History of Gaming<\/strong><\/p>\n

Despite tracing its early commercial birth to the 1950s, gaming truly hit the mainstream in the form of the arcade in 1973 with Atari\u2019s release of Pong (see image below). In 1975, the first multiplayer shooter was released and in 1977, Atari released the first at-home console. In the 1980s, the rise of personal computers and advances in computing power propelled gaming forward at an amazing rate. The next major advancement came in the early 1990s with the use of LAN (local area network) parties, which allowed numerous users in a room to connect their consoles together via a LAN and play multiplayer games in large groups. Following the LAN, internet really opened up the world to multiplayer gaming, without the constraints of being physically co-located. Despite some early attempts to capitalize on the internet through gaming in the 1990s, it wasn\u2019t until speeds increased dramatically in the late 2000s that online gaming really took off. The internet brought about the modern age of gaming, connecting users across the globe. According to a recent industry report, \u201c54 percent of frequent gamers feel their hobby helps them connect with friends, and 45 percent use gaming as a way to spend time with their family\u201d (Tech Crunch).<\/p>\n

\"image-1\"<\/a><\/p>\n

Source: Google Images<\/em><\/p>\n

EA\u2019s FIFA and The Invention of the Ultimate Team Game Mode<\/strong><\/p>\n

In the late 2000s, there were two major soccer franchises competing on the global scale, EA\u2019s FIFA and Konami\u2019s Pro Evolution Soccer (\u201cPES\u201d, aka Winning Eleven). Market share was tight with many enthusiasts opting for the superior gameplay of PES. That all changed in 2009 when FIFA \u2013 in addition to numerous gameplay enhancements made over the years \u2013 introduced the Ultimate Team game mode (which EA would add-on to both Madden and NHL franchises in subsequent years) to capitalize on online gaming. See below for a chart of FIFA\u2019s post-2009 dominance.<\/p>\n

\"image-2\"<\/a><\/p>\n

Source: Created in Excel; data from www.vgchartz.com<\/em><\/p>\n

Ultimate Team is an online trading card game format. Users compete online against one another using collected player cards to form their individual teams. Users earn coins and other prizes for competing (more for winning) which can then be used to either purchase card packs from the store or to buy individual cards from other users on the transfer market, all with the aim of improving one\u2019s team. The FIFA Ultimate Team (\u201cFUT\u201d) store allows users to buy packs with either coins or real money, a source of added revenue for FIFA. Some users spend hundreds, even thousands of dollars buying packs in an effort to acquire rare players like Real Madrid\u2019s Cristiano Ronaldo. This is in comparison to the game\u2019s retail price of $59.99 for the basic version and $99.99 for the premium version, which includes two free FUT card packs a week.<\/p>\n

\"image-3\"<\/a>\u00a0\"image-4\"<\/a><\/p>\n

Source: Google Images<\/em><\/p>\n

Delivering A Preeminent Digital Product<\/strong><\/p>\n

Not only has FIFA capitalized users\u2019 desire to play and compete with one another online, but it has also augmented the reality of the game through graphics and dynamic player ratings. For example, in the FUT game mode, a limited number of special card versions known as \u201cin form\u201d are released once a week for the players who performed best in \u201creal life\u201d in the most recent week \u2013 their \u201cin form\u201d rare card versions include a meaningful ratings boost. This has transitioned into other game modes as well, for example, in the standard game mode, users can choose to play with \u201clive rosters\u201d which include weekly adjusted player ratings based on recent performance. EA provides 24\/7 game service monitoring in order to provide these ratings adjustments. Furthermore, FIFA has created a FUT Hub online, allowing users to access, manage, and trade their cards form their computers or smartphones.<\/p>\n

EA\u2019s Success in Digital Gaming<\/strong><\/p>\n

EA has significantly profited from the creation of FIFA\u2019s Ultimate Team and similar digital initiatives. In its recent earnings release, the Company reported $2.6 billion in trailing 12-month revenue from digital channels, $1.4 billion of which is through consoles (where FIFA is predominantly played). The Company, like most game developers, now offers its titles for direct download through consoles rather than selling disks. Of the Company\u2019s $2.6 billion in digital sales, $1.1 billion was from \u201cExtra Content\u201d like Ultimate Team. It is estimated that Ultimate Team game modes from FIFA, Madden, and NHL generate in excess of $650 million annually for EA (and grew at approximately 25%).<\/p>\n

\"image-5\"<\/a><\/p>\n

Source: Electronic Arts Inc. Q2 FY 2017 Results Presentation<\/em><\/p>\n

The Challenge of the Future<\/strong><\/p>\n

Despite its recent success, FIFA and its developer cannot be complacent. The advent of virtual reality headsets like the Oculus Rift are poised to disrupt the console gaming market in the future. FIFA\u2019s ability to transition from the living room to headset will determine its success in the next decade.<\/p>\n

(781 words)<\/p>\n

 <\/p>\n

Sources:<\/p>\n