How EA plans to compete with Fortnite and Roblox in the metaverse
Electronic Arts’ Q3 2023 earnings call on Tuesday was a mixed bag for the gaming giant — but “The Sims” was a bright point. As marketing dollars flood into platforms such as Roblox and Fortnite, EA sees its popular simulation game as its way to secure a piece of the metaversal pie.
Gaming platforms are currently the closest thing to a truly immersive and persistent digital world, and brands have taken note. As games like Fortnite, Roblox and Minecraft transform into full-service metaverse platforms, marketers have spent millions of dollars partnering with in-game creators to build bespoke virtual brand experiences inside them.
EA didn’t use the word “metaverse” a single time during its Q3 2023 earnings call — but the game developer has clearly taken note of the revenue-generating potential of virtual platforms powered by user-generated content, or UGC.
“There’s no doubt in my mind that ‘The Sims’ will be [as big as Fortnite and Roblox] at some point,” said Samantha Ryan, an svp and general manager at EA who oversees studios including Maxis, the developer of ‘The Sims.’ To learn more about EA’s plans to crank up the UGC capabilities of its games, Digiday spoke to Ryan for this annotated Q&A, supported by observations from EA’s Q3 2023 earnings call.
This conversation has been edited and condensed for length and clarity.
On the EA titles ripe for conversion into metaverse platforms
It’s no surprise that Ryan zeroed in on “The Sims” in her answer to this question. It’s one of EA’s most popular series — if not the most popular — and “The Sims 4” boasted a total player count of 33 million in October 2022, six years after its initial release. (33 million, while a relatively high player count for any game, is still dwarfed by the 173 million and 400 million users respectively enjoyed by “Minecraft and “Fortnite.”)
“The Sims” is a series that is based on the construction of virtual worlds and virtual people to populate them, much like Roblox and Minecraft. Still, as it currently stands, “The Sims” is more of a simulation game — not a true metaverse platform. While users can share their creations with each other, they cannot co-create simultaneously. In Roblox and Minecraft, socializing with other players in-game is practically necessary to keep things entertaining; in “The Sims,” the core gameplay loops are mostly single-player.
On the specific changes that will bring games like ‘The Sims’ closer to metaverse platforms
The planned changes to “The Sims” outlined above by Ryan show how the game’s developers at Maxis are well aware of the inherently social nature of today’s leading metaverse platforms. Taking cues from game modders is also important for EA to ensure that the final product lines up with the community’s expectations, and EA has recently started to test prototype versions of its games with select group of players, sometimes under NDA, before rolling out the final release.
Another key change that EA has made to bring “The Sims” closer to its metaversal competitors is the series’ recent switch to a free-to-play, live service model. “The Sims is also evolving and growing as a live service,” said EA CEO Andrew Wilson on Tuesday’s earnings call. “In Q3, we took the base game free-to-enter and welcomed over 10 million new players into the community.”
On the scale of EA’s UGC audience
EA’s partnership with Overwolf is another reason to believe that the company views Minecraft as a serious competitor. Overwolf owns CurseForge, the largest online game-mod-sharing platform. Millions of users visit CurseForge every month to download Minecraft mods — and now they are also served “Sims” mods whenever they navigate to the CurseForge home page.
“We believe that UGC is the future of gaming. Gamers get more content, mod authors are recognized and rewarded for their creations and publishers can outsource content creation in a way that is safe, while fostering engagement,” said Overwolf CEO Uri Marchand. “Overwolf’s partnership with ‘The Sims 4’ marked a significant step toward unleashing the community’s creativity and making UGC more accessible to the entire ecosystem.”
On the formation of a brand/creator economy in EA’s corner of the metaverse
Platforms like Fortnite and Roblox are full of branded experiences created by independent creator studios without any involvement on the part of the platforms’ developers. In contrast, most brand activations in “The Sims 4” are the result of direct partnerships between EA and the brands. If EA truly wants to compete with today’s leading metaverse platforms, it will have to support the development of a more robust creator economy that allows brands to activate inside the game with minimal involvement from EA itself.
“The future of entertainment is interactive,” said Wilson on Tuesday’s earning call. By pushing titles like “The Sims” and “Skate” into the metaverse using a game-out approaching, EA is betting big on the continued rise of interactive, immersive and virtual media.
‘Its inevitable’: Domino’s hungers for attention and context
Attention-based buying is turning into a legendary tale of patient and nonchalance. So when there’s a glimpse of progress, marketers tend to take notice. Domino’s being one of them.
Why Cars.com is driving away from performance marketing and toward influencers
To boost brand awareness, Cars.com is doubling down on its influencer marketing efforts.
Dopamine rush to deeper engagement: short-form video boom fuels brands’ embrace of longer-form content
Audiences craving more are now being treated to captivating longer-form narratives. It’s the addictive nature of those quick hits that has fueled this transformation.
SponsoredWhat the measurement and currency discussion really means to TV advertisers
Ali Mack, head of TV and agency, Experian Major streaming video providers have recently made headlines by adopting new currencies for ad measurement, threatening Nielsen’s long-standing TV ratings monopoly. NBCUniversal, for example, has certified iSpot and VideoAmp as currencies for advanced audiences and formed the Joint Industry Committee with Paramount, TelevisaUnivision and Warner Bros. Discovery. […]
How gamers’ engagement with short-form video is changing
To better understand how modern gamers are engaging with short-form video, Digiday teamed up with Gamesight to pull key points from an exclusive report on gamers’ shifting video consumption preferences.
Inside SAG-AFTRA’s new deal with video platform Cameo
SAG-AFTRA and Cameo, the celebrity platform that connects talent and fans, have announced a new agreement that allows members to cover brand deals through Cameo for Business (C4B). Brands will be able to access more fan-favorite professional talent through SAG-AFTRA's health and pension plans.