Doctor Dre

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.

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pocketkangaroo

This is some old news, but still sad. EA had gotten beaten out by the last 2K game. Instead of making a better game, EA just bought the exclusive rights. Mediocrity for years to come.

bjjb

Damn shame too. Ive got both Madden 2k5 and NFL 2k5. both for the Xbox Madden hasnt even been opened. lol Matter of fact, if someone wants it ill give it to em. Email me address and ill send it out to em next week.

[email protected]

First email gets it.


Sad part is the Madden franchise will go on for years after the old bastard is dead. Hopefully the NFL will see the light before that happens and give up on the exclusive contract shit.

NaughtyRob

Madden is the best anyway.

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GatorB

First of all this is OLD OLD news.

Second Madden is better, but to each his own. Funny how ESPN can only sell a games by undercuting the competition. If you are better you don't need to do that. Ok it's a supposedly "better" game and sold at 40% the proce of Madden and still Madden outsold 2k5. Hmmmmm does that make sense to anyone?

Thirdly how do you know Madden 2006 is a BAD game? Are you fucking Nostradamus. I mean bring up specific deficientcies about Madden 2006 that you know about that 2k5 didn't have. You 2K guys can go cry to momma because it's Madden or nothing fron now on. I'll be happy playing Madden and really happy playing Maddden 2007 on PS3 next year.

Sosa

way old news. I have always been a fan of EA and their games. Only thing I don't like out of this deal is that EA lost their M.L.B. license so no more MVP Baseball games. I've heard they are using the same engine and just going to come out with a College Baseball game though.