I guess there will be more college football games this year ;)
http://biz.yahoo.com/bw/041213/135991_1.html
UPDATE 3-EA signs exclusive NFL video game license
Mon Dec 13, 2004 06:50 PM ET
(Adds Take-Two comments)
By Ben Berkowitz
LOS ANGELES, Dec 13 (Reuters) - Video game publisher Electronic Arts Inc. (ERTS.O: Quote, Profile, Research) on Monday said it had signed an exclusive agreement with the National Football League and the marketing arm of its players' union, giving EA the sole rights to put NFL players, stadiums and teams in its games.
The exclusive license struck a blow for EA in its ongoing battle with the joint venture of Sega Sammy Holdings Inc. (6460.T: Quote, Profile, Research) and Take-Two Interactive Software Inc. (TTWO.O: Quote, Profile, Research) .
The terms of the five-year deal were not disclosed. EA shares, which touched an all-time high during regular trading, rose five percent after hours when the NFL deal was announced.
Sega and Take-Two's "ESPN" line of sports games, with their strong reviews and discount $20 pricing, ate into EA's market share this year, leading EA to cut prices on its sports games.
While EA's "Madden NFL" used to outsell Sega's NFL football game as much as 10-to-1 on a units basis, this year the ratio has been closer to 1.5-to-1. The Sega/Take-Two game uses NFL player names and likenesses, as well as team names and colors, which will not be allowed under the new arrangement.
"We started talking about this months before the ESPN product even hit the shelves," Gene Upshaw, director of the NFL Players Association, told Reuters. "Its been an ongoing dialogue about what can we do in this category to make it better for all of us."
Take-Two said the Sega NFL game was not a "material contributor" to its profits, but nonetheless it condemned the exclusive NFL/EA deal.
"We believe that the decisions of the National Football League and Players Inc. to grant an exclusive license for video games do a tremendous disservice to the consumers and sports fans, whose funds ultimately support the NFL, by limiting their choices, curbing creativity and almost certainly leading to higher game prices," Take-Two said in a statement.
Take-Two shares fell nearly 7 percent to $33 in after-hours trade on Inet from a $35.42 Nasdaq close.
DEAL SHOPPED AROUND
Players Inc., the marketing arm of the players' union, discussed exclusivity arrangements with all of the NFL game licensees before settling on EA, said Clay Walker, its senior vice president.
EA chief executive Larry Probst told Reuters the company plans to use the license for new game franchises outside of "Madden" and the "NFL Street" brand.
"You can imagine that there will be additional products in different genres than the pure simulation game and the arcade genre," Probst said.
"Madden NFL" is an EA cornerstone, with more than 42 million copies sold over the last 15 years.
The licensing arrangement is an exclusive for game consoles, hand held gaming devices, and the PC. Games for cell phones, fantasy football games and some kinds of online games are not covered by the deal, said Gene Goldberg, vice president of consumer products for the NFL.
EA already has exclusive sports arrangements with NASCAR and the PGA Tour.