Why is FIFA 22 so Expensive? An In-Depth Look at the Costs Behind EA‘s Juggernaut Franchise

At a base price of $59.99 in the US (and £59.99 in the UK), FIFA 22 undoubtedly carries a premium tag – especially against the backdrop of complaints around apparent lack of innovation from the vocal hardcore.

But why exactly does the latest installment in EA‘s juggernaut franchise carry such a high cost? As a seasoned FIFA player and industry commentator, I decided to dig into the myriad factors that contribute to FIFA‘s eye-watering price tag each year.

The Cost of Authenticity: Licensing Fees Keep Rising

One of FIFA‘s major selling points lies in its unparalleled licensing of real-world assets – from officially licensed leagues, clubs and stadia right down player faces and kits. These exhaustive licensing efforts have intensified over the past decade:

As per analysis from Oppenheimer analyst Andrew Uerkwitz, EA faced over $300 million per year in combined licensing costs as of 2021 – covering partnerships with governing bodies, players associations and individual clubs/leagues.

In 2013, EA inked a landmark $1.3 billion deal for exclusive rights to the FIFA name and assets through 2022. And per reports from Polygon, negotiations on an extension through 2026 stalled over EA refusing to double proposed fees to nearly $1 billion.

With EA now rebranding future installments as ‘EA Sports FC‘, it is likely they sought to escape ever-escalating licensing costs from FIFA itself.

These obstacles echo throughout FIFA‘s web of licensing agreements – as leagues/clubs/players associations look to capitalize on EA‘s reliance on authentic branding.

Just look at price tags around major league partnerships:

With EA facing €100m+ in annual costs just for top European league rights, it is clear why base costs remain so high – and set to rise.

Iterative Annual Updates = Recurring Full Price Tags

Beyond licensing, however, FIFA‘s annualized release model itself inherently fuels higher prices. Games with 2-4 year dev cycles often see costs drop months post-launch – but EA‘s 12-month turnaround locks in premium RRP throughout the yearly product lifespan.

And make no mistake: while community sentiment often focuses on perceived lack of innovation, significant resources are invested into each new entry:

• Per EA‘s 2021 annual filing, FIFA games required 2-3 years dev time and $150m+ investment
• Key annual upgrades focus on graphics, gameplay and new modes – from HyperMotion to Volta Story

Combine recurring dev costs and marketing for what are often iterative improvements, and the formula leads to unwavering premium price tags attaching to new FIFA releases each year.

Interestingly, peeking at price trends shows cost has slightly declined in recent years:

While RRP remained flat at $59.99 for main FIFA releases from 2018-2021, special ‘Champions‘ and ‘Ultimate‘ editions saw substantial price hikes over that period – from $79.99 for FIFA 19 Champions right up to $99.99 for FIFA 22 Ultimate.

Here EA uses optional extras editions at inflated costs to capture additional revenue from hardcore fans ready to shell out more – while maintaining uniform base pricing.

In-Game Monetization: FIFA Points and FUT Packs

Looking beyond upfront costs, arguably FIFA‘s greatest moneymaker lies in exploitation of in-game ‘FIFA Points‘ purchases. For Context:

• Players buy FIFA points (100 FP = $0.99) to purchase packs containing random player cards for FIFA Ultimate Team (FUT)
• Better cards are branded as rare gold, icons, team of week (lower pack weight)
• The chance element fuels hopes of getting Messi, Ronaldo etc to build dream FUT squads

This monetization sparks consistent and recurring revenues for EA each year. Based on earnings reports and player surveys, analysts have estimated:

• >25% of FIFA players engage in in-game purchasing
• Average spending ranging from $200 to $400 among payers
• Conservatively $1.5 billion+ in net annual revenues from FUT points

In fact market research suggests over $800 million was spent in FIFA 17 alone on Ultimate Team packs. And with the mode more popular than ever, FIFA 22 likely exceeded that figure.

This shows that while a chunk of players refuse to engage with paid boosters, FIFA points have formed a reliable secondary revenue stream alongside base game sales.

What Does This Mean for FIFA 23?

Given the myriad factors underpinning costs from licensing to production to in-game spending incentives, FIFA‘s premium price point looks locked in for 2023‘s edition:

• Base Game MSRP almost certain to remain at $59.99 in US/Canada and £59.99 in UK
• Extra editions with Ultimate Team packs/points boosts set to span from $79.99 to $99.99
• Licensing costs continue to escalate across leagues/clubs deals
• In-game monetization ever more aggressive as EA seeks to increase digital revenues

The UEFA license lapse remains the only wildcard – but won‘t impact costs, only specific clubs/assets dependent on resolution of that complex situation.

So in summary – the perfect storm of annualized production, licensing barriers, and ingrained monetization systems indicates FIFA 23 will retain the usual premium price tag upon autumn release. Hardcore fans have shown a willingness to pay each year for iterative updates and Ultimate Team enhancement – a trend that won‘t change anytime soon.