EA Sports Faces Soccer Setback While FIFA Eyes Fresh Start With Mythical Games

Electronic Arts (EA), the video game giant whose soccer simulations have long dominated the genre, has hit an unexpected rough patch. The company’s largest gaming franchise, which rebranded from FIFA to EA Sports FC last year, is experiencing slower-than-anticipated sales and engagement. EA shares slid more than 16% on January 23, marking their steepest single-day drop in nearly 17 years.

EA’s Soccer Rebrand Falters

For decades, EA’s FIFA franchise reliably delivered a sizable chunk of the company’s revenue. According to Visible Alpha, EA’s soccer titles and linked Ultimate Team service have historically accounted for nearly half of EA’s total net bookings. After the switch to EA Sports FC in 2023, the initial reception was decent; however, the latest iteration which launched in September appears to be struggling.

EA has cut its net bookings forecast for the fiscal year ending in March by up to $650 million, primarily due to the underperformance of its soccer business. The recent shortfall contrasts sharply with FIFA’s traditional resilience, raising concerns about where EA’s growth will come from if its biggest franchise can’t regain its footing. Analysts have taken notice: at least three firms downgraded EA’s stock, driving down the percentage of “buy” ratings to a five-year low of 33%.

EA also cited lackluster sales from Dragon Age, another flagship franchise, as contributing to the lowered guidance. Yet the soccer stumble stands out: it has historically been a durable profit engine and a virtual gateway for international sports fans, culminating in significant in-game spending via Ultimate Team.

FIFA Cosies Up to Mythical Games

While EA Sports gets used to life without FIFA, FIFA has been straight back on the scene, wasting no time in inking a new gaming partnership leveraging its precious IP. This time, it’s a web3 gaming studio entrusted with the task. Mythical Games won’t be recreating the classic FIFA game as popularized by EA, however. Rather, it’s launching something entirely fresh.

The forthcoming title, called FIFA Rivals, will hit differently, drawing upon the winning formula that saw the previous Mythical release NFL Rivals become a 7M-downloaded hit. Reasoning that if it ain’t broke don’t fix it, Mythical is confident that it can repeat the magic and even go one better with FIFA Rivals due to the size of soccer’s global fanbase.

Their collaboration with FIFA promises a unique blend of arcade-style gameplay and strategic team-building. So far, Mythical hasn’t released a whole lot of information on how the game will look and feel. Suffice to say it will follow a similar format to NFL Rivals, but with a few fresh features thrown in too.

What we do know is that the game is optimized for mobile and that players are tasked with building the ultimate squad. FIFA Rivals will feature two modes: PvE campaign and a PvP format that’s designed to provide the full esports experience. With the game on course to arrive in late summer, mobile gamers won’t have to wait long to see what the first FIFA-endorsed web3 game has to offer.

Beyond Football

While it’s fair to say that FIFA Rivals is a bigger deal to Mythical Games than it is to FIFA, soccer’s governing body will nevertheless be hoping the game proves a success. It’ll put more distance between FIFA and EA Sports while demonstrating that the former isn’t afraid to take risks and venture into pastures new. If FIFA Rivals does pull similar numbers to its NFL counterpart, it won’t do web3 gaming any harm; nor will it hurt the fortunes of Mythical Games.

Regardless of how FIFA Rivals performs, it’s shaping up to be a prolific year for Mythical. In addition to its summer soccer release, it’s applying the finishing touches to the official Pudgy Penguins game, known as Pudgy Party. There are also believed to be more sports games in the works as well as its own platform game Blankos. If EA Sports did one thing wrong, it was to predicate so much of its fortunes on the success of one game. Mythical Games won’t be making that mistake.