EA Sports Reports “Strong Quarter”, Kicks Off Qualifying for FIFA eWorld Cup 2018

Qualifying tournaments for EA Sports’ (EA) FIFA eWorld Cup 2018 are underway and will run through July ’18, narrowing the field down to 128 participants (64 PS4 (SNE), 64 Xbox One (MSFT)) who will compete in the FIFA ’18 Global Series Playoffs. The tournament will include both players signed to professional teams as well as amateur tournament winners. Those who advance will play in in the FIFA eWorld Cup Grand Final, with the winner of each playoff (PS4, Xbox One) receiving a $35,000 prize.

Howie Long-Short: EA Sports announced fiscal Q2 revenues rose 7.4% YOY on an adjusted basis (to $1.18 billion), reducing the company’s net loss to $22 million (from $38 million in ’16). CEO Andrew Wilson called it a “strong quarter”, writing that “the company benefited from the customer’s response to EA Sports games (Madden NFL, FIFA), and its mobile games”. CFO Blake Jorgensen said that the company had experienced notable growth in its high-margin digital business (+21.7% to $689 million) during the quarter. As of the close on Wednesday, the stock is up more than 45% on the year.

Fan Marino: More of an NBA 2K (TTWO) gamer than a FIFA one? 2K Sports has announced that the latest release of NBA 2K18 features verified users. That means gamers will know if they’re playing against NBA players, celebrities or members of the 2K development team. Fans are going to flip when they realize they’re playing as LeBron, against LeBron.

FIFA and EA announce the first eWorld Cup

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NBA AND TAKE-TWO INTERACTIVE LAUNCHING NBA2K ESPORTS LEAGUE; PLAYERS WILL COMPETE FOR CONTRACTS AND ENDORSEMENT DEALS

The NBA and Take-Two Interactive (TTWO) will be launching an “NBA2K” esports league in the spring of 2018. Teams representing NBA organizations will be comprised of 5 digital athletes, each competing for contracts and endorsement deals in addition to the league championship. The idea is for the league to mirror the NBA as closely as possible, with players treating the season as a full-time job. 17 teams will compete in the inaugural season, though important details including; how to draft players, the set-up for broadcasting/streaming and the implementation of a salary cap are still to be worked out.

Howie Long-Short: Amazon (AMZN) owned Twitch publishes rankings reflecting esports games with the most viewers, hours watched etc. While “League of Legends” (HKG: 0700) drew 43 million viewers to their final, “NBA2K” drew less than 4,000 over the last week. The game also sits behind both “FIFA” (EA) and “Madden” (EA) in the viewership rankings. This partnership has a long way to go before it becomes a profitable venture.

Fan Marino: A big issue that is often overlooked when discussing a sports game as a viable esport, is that sports games are designed as a simulation. Since the games are meant to reflect real life as closely as possible, some players/teams are better than others. That causes a competitive balance problem. If you fix the stats to create parity, the game no longer provides a realistic simulation of the sport.

The NBA 2K League: What We Know So Far, And Can It Succeed As An Esport?

MADDEN ’18 HITS SHELVES; “LONG SHOT” MODE RECEIVING RAVE REVIEWS

Electronic Arts (EA) has released the newest edition of their Madden franchise (Madden ’18) and the football simulation game is receiving tremendous reviews. The most recent iteration of the game includes a story mode known as “long shot”, which puts the player in the shoes of a rookie as he embarks on a journey to become an NFL star. EA hopes that focusing on the more personal side of football (sacrifices, stress, celebrity) will increase immersion for players of the game. Other notable changes from Madden ‘17 include an improved graphics engine, updated stats and rosters and new broadcast commentary.

Latest ‘Madden’ video game rolls out some of its biggest changes ever

Howie Long-Short: Take-Two Interactive (TTWO) has the dominant NBA game (2K), so how come they no longer make an NFL version? EA smartly signed an exclusive licensing deal with the NFL and the NFLPA back in 2004. Without player and team names, 2K simply can’t compete.

Fan Marino: It’s remarkable the game has maintained its cultural relevance for over 25 years, but you must remember that 1994-2016 was a period of astronomical growth for the NFL. I believe the popularity of the game is a direct byproduct of the league’s success. Should league interest continue to wane, so too will interest in the Madden franchise.

ELECTRONIC ARTS OPENS REGISTRATION TO MADDEN NFL CLUB CHAMPIONSHIP; WINNERS TO REPRESENT FAVORITE TEAM AT SUPER BOWL

Electronic Arts (EA) has introduced the Madden NFL Club Championship, a new esports football competition that will enable players to compete on behalf of their favorite team. Through live and online elimination events, winners will qualify to represent each of the 32 NFL franchises in the finals during Super Bowl week in Minneapolis. EA is actively seeking corporate sponsors and broadcast TV partners for the event, while the NFL is funding the competition’s $400,000 prize pool. Registration is now open.

Armchair QBs Compete to Represent NFL Teams in Esports Tourney

Howie Long-Short: EA stock is up 500% over the last 5 years, but it has nothing to do with the success of the Madden or FIFA franchises. The transition from the physical sale of game discs to digital distribution has sent gross margins from 61.4% in 2012 to an expected 72.1% in 2017.

Fan Marino: The big innovation in Madden ’18 is “longshot” story mode, which places a college QB into a reality show with the end goal of making the NFL. Check out the trailer. Certainly looks intriguing enough to get me to buy the game for the 25th year in a row.