OT: EA gains exclusive rights to NFL property for use in Video Games

[WorldRunner]

This happened a few days ago... didn't even think about posting it until now.

No more Sega/ESPN. EA Just wrecked 'em. Very smart move....But eliminates competition in the football gaming market. EA is likely to try this with the MLB, NHL, and NBA. Not sure how likely any of those are to sign exclusive deals though... The NFL is the most likely and they just did.

Article:

EA Enters into Exclusive Agreements with NFL and PLAYERS INC to Expand and Integrate Customer Entertainment Experience

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 13, 2004--Electronic Arts (NASDAQ:ERTS) today announced exclusive licensing relationships with the National Football League and PLAYERS INC to develop, publish and distribute interactive football games. These five-year agreements -- which EA negotiated separately -- give EA the exclusive rights to the NFL teams, stadiums and players for use in its football videogames. Both agreements also include exclusive rights for console online features. Financial terms of the agreements were not disclosed.

For the first time, all aspects of the interactive experience -- including console-based fantasy football features and handheld game devices -- will be fully integrated with one EA game. This also provides the opportunity for new games and for EA to access both NFL Films and the NFL Network for use in the games.

"We are pleased to expand our agreement with Electronic Arts, the leading video game manufacturer and a valued NFL partner," said NFL Commissioner Paul Tagliabue. "We look forward to working with EA to continue to enhance the quality of NFL video games that our fans have enjoyed for many years."

"For more than a decade, EA has produced the most authentic football product for fans of the game," said PLAYERS INC Chairman Gene Upshaw. "This exclusive relationship will maximize the value of NFL players through EA's continued commitment to bring fans closer to the game."

"We are excited about the opportunity to further enhance our relationship with the NFL and PLAYERS INC," said Larry Probst, Chairman and CEO of Electronic Arts. "The five-year agreements will usher NFL fans through the console technology transition with new ideas and innovative game play experiences."

Both agreements are exclusive for action simulation, arcade-style and manager games on the PC, handheld game devices and consoles -- including console online features. The agreements do not include exclusive rights to other types of games or games accessible from the Internet or wireless devices, including cellular phones.

Madden NFL Football from the EA SPORTS(TM) brand has sold more than 42 million copies over the franchise's 15 year history. Madden NFL 2005, the most complete football game ever, is available for the PlayStation(R)2 computer entertainment system, Xbox(R) videogame system from Microsoft, Nintendo GameCube(TM), Game Boy(R) Advance, the PlayStation(R) console and PC. NFL STREET 2 for the PlayStation 2 console, Xbox system and Nintendo GameCube will be on store shelves by December 26, 2004. Both games were developed by EA Tiburon, and rated "E" (Everyone) by the ESRB. The games official websites are www.madden2005.com and www.nflstreet2.com.

 

[WildBill]

The NFL will hear an uproar over this when EA starts charging $70-80 for the game with no competition to worry about and no need to reduce the pricing until the new game comes out the next year. Dumb move, the Sega games lineup is giving EA some healthy competition on both pricing and quality.

 

[WorldRunner]

The NFL will hear an uproar over this when EA starts charging $70-80 for the game with no competition to worry about and no need to reduce the pricing until the new game comes out the next year. Dumb move, the Sega games lineup is giving EA some healthy competition on both pricing and quality.

The NFL won't hear a thing. Nor will they care. Both EA and the NFL are a big $$$ corporations... That's what they care about.

It wasn't a "dumb move" It was definetly a smart move by both sides involved. Game prices haven't inflated... When they do they ALL will. EA is not going to up the price of their games until everyone else does so that's not really a valid arguement.

 

[Blaze]

I like ESPN 2k5 much better than Madden 2005. It sucks that this will be the last year espn makes a football game.

 

[TescoVee]

I hope ESPN keeps the NBA games as the EA LIve has always been awful. I liked the ESPN football game this year but found it too easy to run. The price was right though. I bought both.

 

[daringly]

No way in hell this agreement will keep ESPN/Sega from putting out their own games. This sounds like a complete violation of the antitrust code.

Odds that ESPN will put out Football next year:
Yes -1000
No +800

 

[Woody0]

Are these games only for children or do they hold interest for gamblers?

In other words can you plug in numbers on players and teams and have it run the same game hundreds or thousands of times, like the poker software, as a tool for evaluating real game outcomes?

 

[WildBill]

The price for games on the next gen consoles are expected to range from $50-90. These will begin hitting the market around start of 2006. The big difference though is the discounting of games. EA has been forced to already lower to $30 due to competition. In the past the $30 price would come only a few months before the new game was released.

I doubt other leagues will all follow along. Too bad the NFL, the most popular for video games decided to do this and reduce the competition. Find me an example where competition wasn't good for cutting edge develpment.

 

[WorldRunner]

Are these games only for children or do they hold interest for gamblers?

In other words can you plug in numbers on players and teams and have it run the same game hundreds or thousands of times, like the poker software, as a tool for evaluating real game outcomes?

Yes...you COULD do that...although it's not going to be too incredibly accurate. I have a software program which simulates outcomes of real games (currently NBA, NCAAB, NCAAF, Nascar, MLB, and NFL) For the past few weeks almost all of my wagers have been because of my program. It's done very well in the NFL and NBA this year. NCAAB totals it can't do for some reason (needs more work). Does well in nascar matchups too.

Basically what it does is look for bad lines more than anything else. It simulates the results and then gives you the best chances to make a profit. It's worked so far. Took a lot of time and money to create it though.

 

[WorldRunner]

The price for games on the next gen consoles are expected to range from $50-90. These will begin hitting the market around start of 2006. The big difference though is the discounting of games. EA has been forced to already lower to $30 due to competition. In the past the $30 price would come only a few months before the new game was released.

I doubt other leagues will all follow along. Too bad the NFL, the most popular for video games decided to do this and reduce the competition. Find me an example where competition wasn't good for cutting edge develpment.

Microsoft, Sony and Nintendo will not be charging $90 for games on their next console. That's not at all feasable right now. The highest end PC games run $54.99. That was the first step up in price that we've seen that is now a standard for high-end games (doom 3, half-life 2, etc) I'd imagine that the games are going to cost $59.99 at the most for our next round of consoles. $90 is not even a possibility at this point. I'd like to know where you saw that #.

 

[WorldRunner]

No way in hell this agreement will keep ESPN/Sega from putting out their own games. This sounds like a complete violation of the antitrust code.

Odds that ESPN will put out Football next year:
Yes -1000
No +800

Nobody can prevent them from making a football video game.

However...their football video game cannot contain ANY NFL player, ANY NFL stadium or ANY NFL team name.

So you're going to have teams like the Baltimore Vultures led by MLB Jay Louis. Yah.... like anyone is going to want to play that.

Your line is way off.... and ESPN has nothing to do with the game.

 

[HacheMan]

Well, if there has to be one, no better than Electronic Arts.........

 

[TheATMMachine]

I play these sports games often on X-BOX.Get a few friends over,order some pizza and start some tourneys,it is a fun thing to do and of course we are betting like hell on these games.

I really hope that Sega will continue to make football games though because this years Sega football game was the BEST football game of ALL TIME(X-BOX)!! And it only cost $20.00!

As far as basketball games,get last years NBA LIVE 2004 by EA sports and keep it! Nothing even comes close.I had 2003 and this years NBA LIVE and they are no comparison to the 2004.

Not to mention SEGA/ESPN selling their sports games for $20.00 forced EA sports to do the same.In TARGET the other day and saw MADDEN on sale for $25.00!

COMPETITION is a GREAT thing!

 

[Noreaga+]

well EA better make their madden game better and more realistic