Videogame Publishers Win With Sports Titles -- WSJ
19 Agosto 2019 - 2:02AM
Noticias Dow Jones
By Sarah E. Needleman
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 19, 2019).
Electronic Arts Inc. kicked off the videogame industry's annual
sports season with a strong start for Madden NFL, showing the
resilience of decades-old franchises as technological strides
enable game developers to engage players with new modes and online
competitions.
The latest installment, "Madden NFL 20," was the best-selling
game in the four weeks that ended Aug. 3, even though it was only
released on Aug. 2, market-research firm NPD Group said in a report
last week. The football videogame is now the eighth-best-selling
U.S. title this year, according to NPD. The report didn't disclose
the total number of units sold.
Other annual sports simulators have shown durability. Take-Two
Interactive Software Inc. said earlier this month its most recent
basketball game, "NBA 2K19," sold a series record of about 12
million units. EA said last month that net revenue from the
Ultimate Team mode in its FIFA franchise rose 11% from a year
earlier.
A new installment of NBA 2K, which made its debut in 1999, is
due in early September. EA's "FIFA 20," the latest version of a
franchise that started in 1993, and "NHL 20" are expected to be out
next month.
Madden, which launched more than 30 years ago, is typically
among the top-10-selling games in the U.S. each year, according to
NPD, ranking No. 4 in 2018. "NBA 2K19" finished the year at No. 3.
The FIFA game and Sony Corp.'s "MLB: The Show" didn't make the top
10 but are still strong sellers, said NPD analyst Mat
Piscatella.
Sports games are a key part of videogame makers' portfolios.
EA's sports portfolio alone generates roughly $3 billion in annual
revenue, or about 60% of the company's total, according to an
estimate from investment-research firm Bernstein. Take-Two's sports
games are on track to make up around 38% of total revenue in the
current fiscal year, Bernstein said.
Industry analysts credited the long-term success of sports
simulators largely to advances in technology that have given
publishers the ability to update their games after release to
reflect athletes' real-world performance. That has made the games
more engaging for longer stretches of time, they said, and thus
more lucrative.
Kobi Simmons, 21 years old, said he has bought every Madden
installment since he was in grade school. He likes that EA
regularly updates the game with new modes and other features.
For example, this year EA added to Madden NFL a mode that takes
players on a journey as a star quarterback. The game's roster of
players changes with each installment.
"You have to buy the game each year if you want to play with the
new players," said Mr. Simmons, of Fair Lawn, N.J., referring to
rookies including the Arizona Cardinals quarterback Kyler
Murray.
The trend of frequently updating sports games is rooted in the
development and popularity of consoles including Microsoft Corp.'s
Xbox One and Sony's PlayStation 4, which connect to the internet.
As more people play games online, developers have poured more time
and money into creating content for games with well-defined fan
bases, as opposed to taking chances on entirely new properties.
"The constant updates keep fans coming back day after day," said
Stephens analyst Jeff Cohen.
On an earnings call with analysts earlier this month, Take-Two
Chief Executive Strauss Zelnick said people used to play NBA 2K
games for only about three months. "Now it's a nine-, 10-month
experience, and we think it's going to grow to be a full, one-year
experience," he said.
Jason Argent, an executive at Take-Two's 2K studio, said Friday
in a statement the company is "constantly looking for new ways to
deliver an entertainment experience that captures the different
aspects of basketball both as a sport and a culture."
An EA spokesman said Friday that player sentiment for Madden is
the highest the company has ever seen. "We brought a ton of
innovation to Madden this year," he said.
Esports leagues and tournaments dedicated to sports games are
another, newer draw. FIFA, Madden and NBA 2K all offer fans the
option to participate in competitions that offer prize money.
Corrections & Amplifications Kobi Simmons lives in Fair
Lawn, N.J. An earlier version of this article incorrectly spelled
the town's name as Fairlawn. (Aug. 18, 2019)
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
August 19, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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