MVP 018 - The Business of Sports Video Games

Today, your hosts, Jimmy and Courtney, are diving deep into the fascinating history and evolution of sports video games.

 
 

Episode Highlights

Birth of Video Games:

  • "Tennis for Two" in 1958

  • Arcade game revolution with classics like Pong

Role of Trip Hawkins:

  • Founder of Electronic Arts (EA)

  • Significant impact on the industry through understanding of computers and marketing

EA's Sports Video Game History:

  • Initial struggles with a football-based game

  • Successful pivot to a basketball game in 1983

  • Groundbreaking use of AI in simulation sports in 1987

  • Creation and impact of "John Madden’s Football"

Licensing Agreements in Sports Video Games:

  • EA's saving of $35 million by threatening to reverse engineer Sega Genesis console

  • Success stories from games like Tony Hawk's Pro Skater and NBA Jam

  • Exclusive deal between EA and the NFL in 2004

  • Return of the NCAA Football series

Licensing Business Model:

  • Explanation of the lucrative business model of licensing

  • Revenue generation through royalties for intellectual property rights holders

John Madden and EA Sports Partnership:

  • Success of the partnership, generating $7 billion in revenue

  • NFL's involvement and fan engagement

  • Licensing of player likenesses, NFLPA's role in trademarks, and athletes licensing their name, image, and likeness

EA Sports FC 24 and FIFA Partnership Evolution:

  • Evolution of video game companies with a focus on FIFA's popularity

  • Expired contract leading to rebranding to EA Sports FC 24

  • Speculations about FIFA's role and benefits of EA Sports' new approach, including a $10 million global donation to soccer communities

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Sports Business, Business BreakdownCourtney StephenVideo Games, FIFA, Soccer, EA SportsComment