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 Such a partnership would come as the cable company seeks to protect
its turf against a new wave of challengers.
After two years of testing, Comcast and EA, are close to reaching an
agreement to stream video games such as "FIFA" and "Madden," into
the living rooms of some of Comcast's more-than 22 million customers
across the United States, said the sources, who declined to speak
publicly before a deal had been struck.
Comcast would make the games available on X1, a video operating
system with apps and an interface that is considered the most
sophisticated in the cable industry, the sources said. It features
Internet applications, viewing recommendations and voice control.
If the agreement goes through, it would mark the boldest step yet by
a cable company to muscle into the territory of leading video-game
console manufacturers such as Sony Corp and Microsoft Corp.
Comcast has been beefing its x1 system with new features to stop
potential customer defections to rival video streaming systems such
as Apple TV and Amazon.com Inc's FireTV, which was launched just
last month with a slew of games.
Apple TV allows users to stream games from their iOS phones and
tablets to TV sets, and developers expect Apple to bring gaming
directly to its streaming box. FireTV was released with over 100
free and paid games from the likes of Disney and Electronic Arts.
Comcast and EA's aim is to make buying games as easy as ordering a
pay-per-view movie, sources said. This could create a new
distribution model that circumvents console and video-streaming
device makers.
EA and Comcast, which is awaiting regulatory approval for its $45
billion proposal to buy Time Warner Cable Inc, declined to comment.
The TWC deal, which would make Comcast the country's largest cable
provider, highlights Comcast's desire to thwart the fresh challenge
from the video and entertainment upstarts.
A NEW DAWN
For Electronic Arts, a deal with Comcast could represent an
important new revenue opportunity.
The video game industry has yet to see a sustained recovery in
sagging software sales despite robust hardware sales driven by the
November launches of Microsoft's Xbox One and Sony's PlayStation 4
consoles.
In January, Redwood City, California-based EA lowered its 2015
revenue forecast - prompted by the sooner-than-expected drop in
sales of games for older consoles after the release of the new
devices.
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Under the agreement now being hashed out with Electronic Arts,
Comcast will offer action, sports and casual titles from EA's
portfolio, including potential titles such as "FIFA," "Madden,"
"Monopoly" and "Plants vs. Zombies," the people said. The game
offerings have not been finalized.
Customers will be able to turn their tablets into controllers to
play the games. Revenue share terms and the exact release date have
not been decided.
Comcast has been bulking up the capabilities of its X1 service,
which can store content on the cloud, and experimenting with new
ways to reach viewers.
Last fall, it started selling movies for download and streaming
through its set-top boxes and XFINITY TV website, which created a
new path for Hollywood studios to generate revenue from films after
their theater run ends.
While Comcast added video subscribers for the past two quarters,
after years of losses, it is facing increasing competition for
viewership, both online and through streaming boxes. The Xbox and
PlayStation, for instance, are now marketed as living room
entertainment hubs that offer more than just games.
Microsoft and Sony have added media features to their consoles over
the past two years like original programming, online video and TV
apps -- including Comcast's XFINITY on-demand service. But cable
companies so far have not been able to load their set-top boxes with
the technology to support gaming.
Comcast will focus on casual and family games at first and consider
offering other first-person shooter and action games later based on
user preferences, the sources told Reuters.
(Editing by Edwin Chan and Alden Bentley)
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