Electronic Arts

We see a multi‑pronged moat built on: 1) Intangible assets and exclusive licenses: Madden remains the only licensed NFL simulation game through at least 2030, UFC licensing runs through 2030, and EA holds Premier League and UEFA rights for EA Sports FC.

These licenses confer brand authenticity and legal barriers to entry that are costly for rivals. 2) Efficient scale: Sports simulation economics and annual cadence favor incumbents with distribution, marketing and data pipelines; rivals face prohibitive rights costs and multi‑year development. 3) Switching costs and ecosystem: While Ultimate Team resets yearly, players’ learned skills, social graphs, and in‑game economies create friction to switching; The Sims DLC libraries also create attachment. 4) Network effects: Multiplayer and creator economies (Apex, FC, Skate, The Sims) benefit as communities grow, though network effects are secondary to licensing.

Risks: license renegotiation costs; potential erosion if football engagement slows; regulatory pressure on loot boxes; and platform policy changes (e.g., subscription bundling).

Component view (our weights in parentheses): Intangibles/license exclusivity 90/100 (35%); Efficient scale 85/100 (20%); Switching costs 75/100 (20%); Cost advantages 70/100 (15%); Network effects 65/100 (10%).