EA could lose exclusive NFL rights according to EGM

[rudyjuly2]

Quote: Originally Posted by spankdatazz22

The only way I see this deal blowing up is if it's not profitable enough for EA. Sure, they're setting sales records - but they were doing that before exclusivity.

EA paid a ton of money for the NFL license and the ESPN licence. I don't get how they paid so much money for the ESPN licence and still barely use it. EA paid around $300 million over 5 years for the NFL licence ($60 million annually) which if they sold over 6 million copies translates into less than $10 a game. That's not much when they can simply raise their prices $10 without any competition to stop them. Remember EA had to drop their prices by $20 to compete with 2K5's bargain price. Its also not much when it eliminates competition and preserves your perch at the top.

http://money.cnn.com/2004/12/14/comm...column_gaming/

[sroz39]

Quote: Originally Posted by spankdatazz22

While I generally agree with you, I think the press is no where near negative enough to change the general perception of Madden. One thing EA's done a masterful job of is getting people to manage their expectations. Is there any other major game where most people expect the worst but hope for the best (instead of expecting the best)? Imo Madden's not horrible, it's just mediocre - not good enough to be loved, and not bad enough to get enough people mad. In general I don't believe the NFL cares about how Madden performs, any more than I believe that John Robinson blurb that the MLB was upset at 2K and how their game was received. The NFL isn't going out of it's way to market the game. I do think the NFL would act if there was enough of a public outcry, but again - EA's done a great job at managing people's expectations. If EA did nothing more than release a roster update and some additional animations for next year's current gen game, that'd be what most expect. If they do nothing but add the current gen features to the next gen game, most would look at that as the expected improvement. As bad as the original Madden 360 was, it still got an 8.0 from IGN I believe. I just read the Game Informer PS3 review where they badmouth the game yet still gave it a 7.75. Stores like EBGames and Gamestop dedicate entire walls to hype Madden 4-5 months before the game releases because they can get people to give them money to reserve it. There are just too many factors that go into the reasoning why the NFL wouldn't force a change. The only way I see this deal blowing up is if it's not profitable enough for EA. Sure, they're setting sales records - but they were doing that before exclusivity. Change might come if enough people reach the point I have, where they just don't care about NFL videogame football because the game is frustratingly mediocre. But right now I think it's battered wife syndrome - EA has convinced people to be appreciative of even little things like free alternate jerseys - something they did reluctantly lol. Open discussion about the game rarely happens on message boards because it usually tends to generate too much negativity. Diehard Madden fans can't even get up enough to talk down on a possible generic - GENERIC!!! - VC football game. That's how far the game has fallen. But don't see anything changing unless people rise up (unlikely) or this deal isn't profitable enough for EA.

Great post. I've mentioned the whole financial side of the equation many times. There's many ways to look at it. Is EA making more or less money off Madden since the deal? If they're making less, do they justify it the way tv stations do with NFL broadcasting rights, where it's better to have the NFL and break even than not have it and make money?

I think the evidence of EA having a few financial troubles are all around us, but we don't always notice them. Have you seen their instruction booklets this year? It's one thing to have tiny books, but the paper they're using is worse than any other booklet out there. They're obviously trying to cut costs. I recently pulled out my Madden 2003 and 2004 booklets. Wow, what a difference.

In the end, the NFL is clearly benefitting from this deal as they are getting 100 million dollars every year for five years, regardless of the sales. EA? I wish I was privy enough to see their books.

[Nza]

Quote: Originally Posted by mvb34

The new commish didn't come from the outside he was Tangs right hand man so you theory don't fly

What, they're identical?

And it's not like Tag would have made his decision (or whoever made the decision on the next commish) based on who agreed with his stance on exclusivity deals for their videogame license.

[rudyjuly2]

Quote: Originally Posted by sroz39

Great post. I've mentioned the whole financial side of the equation many times. There's many ways to look at it. Is EA making more or less money off Madden since the deal? If they're making less, do they justify it the way tv stations do with NFL broadcasting rights, where it's better to have the NFL and break even than not have it and make money? I think the evidence of EA having a few financial troubles are all around us, but we don't always notice them. Have you seen their instruction booklets this year? It's one thing to have tiny books, but the paper they're using is worse than any other booklet out there. They're obviously trying to cut costs. I recently pulled out my Madden 2003 and 2004 booklets. Wow, what a difference. In the end, the NFL is clearly benefitting from this deal as they are getting 100 million dollars every year for five years, regardless of the sales. EA? I wish I was privy enough to see their books.

Those instruction booklets are a joke now. They don't even include all of the functions anymore. The NCAA booklet didn't even tell you how to do smart routes or that UP on the R-stick still covered up on the ball. They were also black and white and yet for some reason the french versions which have to be printed in Canada due to our bilingual status were done in colour. Go figure.

No doubt the exclusive deals have hurt EA financially a bit. I guess they have to look at the risk/reward of what competition would do long term. EA did have an exclusive NHL deal with the players and NOT the league in an effort to kill off the 2K hockey series. The NHL stepped in and told EA they couldn't have the team licences if they had an exclusive player deal and the whole thing fell apart. Good for the video game fans that the NHL saw that competition was good. The NBA denounced the exclusive license as well but those sports didn't have a clear cut money maker like Madden was.

[sroz39]

Quote: Originally Posted by rudyjuly2

Those instruction booklets are a joke now. They don't even include all of the functions anymore. The NCAA booklet didn't even tell you how to do smart routes or that UP on the R-stick still covered up on the ball. They were also black and white and yet for some reason the french versions which have to be printed in Canada due to our bilingual status were done in colour. Go figure. No doubt the exclusive deals have hurt EA financially a bit. I guess they have to look at the risk/reward of what competition would do long term. EA did have an exclusive NHL deal with the players and NOT the league in an effort to kill off the 2K hockey series. The NHL stepped in and told EA they couldn't have the team licences if they had an exclusive player deal and the whole thing fell apart. Good for the video game fans that the NHL saw that competition was good. The NBA denounced the exclusive license as well but those sports didn't have a clear cut money maker like Madden was.

Very true. And not too long ago, I read on 1up.com that ALL of EA's licensing is costing them in a big way, directly leading to the financial struggles they are having. Nobody doubts that they gross a ton of money. But it's only net that matters, and to the shareholders, it was enough to let the Bond license go. Is this the beginning of a company-wide redirection? Or a one-off?

[mjb2124]

Quote: Originally Posted by Nza

What, they're identical? And it's not like Tag would have made his decision (or whoever made the decision on the next commish) based on who agreed with his stance on exclusivity deals for their videogame license.

Somehow I don't think the commish is making any sort of decision on a video game. He has someone else making those decisions as a video game is probably not very high on his list.

I don't see how a new commish will have any bearing on this at the present time.

[DaveDQ]

Quote: Originally Posted by spankdatazz22

Change might come if enough people reach the point I have, where they just don't care about NFL videogame football because the game is frustratingly mediocre. But right now I think it's battered wife syndrome - EA has convinced people to be appreciative of even little things like free alternate jerseys - something they did reluctantly lol.

If you compare two major games, NBA 2K7 and Madden 07, in terms of what they offer on the next-gen level, I think you will see the extreme difference in philosophy these companies have.

It is the goal of 2K Sports to set themselves as the next-generation sports platform, and they are actually getting help from EA. They have successfully done this with the NBA game. Madden has done this with Madden because all there is is Madden. It'd be really interesting to see what would have happened with football if there wasn't the exclusive license.

If 2K Sports nails baseball to where it reaches out to gamers like NBA 2K7 has done, I really believe EA Sports is in trouble.

And, on top of that, if 2K does indeed release a football game that has the many things we all wanted from Madden, they just might position themselves where even the casual gamers are saying, "Man, I wish these guys where doing an NFL game."

[bkrich83]

Quote: Originally Posted by Behindshadows2

OMG!!! The only NFL Football game period, sold well.....my goodness.....thats a shocker....and yes that is sarcasim. IF your the only NFL game period, you have no choice but to sale period or well. Where else can you get a licensed game. Nowhere!!!! Be assure, if 2k was still making NFL games, those sales figures would be 70% lower....especially after the great ratings and name 2k5 had, and with the positive progress 2k is making on all other sports titles...

That's besides the point. If the game is selling well, and the profits are high, why would you think the NFL would care about the "quality of the game"?

And exactly how did you come up with 70% lower, when 2k never made that kind of impact on Madden's sales before?

I want the deal to go away, and I think it's terrible, I am a 2k guy first and foremost for football, but I swear, some of you have completely lost touch with reality.