Take-Two News......

[Programmed2Kill]

Ohhh I didn't know it only excluded EA. Thanks guys.

Man, sports videogaming is running amuck.

[Braylon]

Quote: Originally Posted by grunt

Here is the proof. Analyst calls ESPN pricing 'brilliant' Industry analyst reiterates "buy" rating for Take-Two; calls $19.99 price point a "brilliant maneuver." Holds no grudges, "buy" rating also given to EA. Industry analyst PJ McNealy of American Technology Research lent his insight on Take-Two’s aggressive price point for the ESPN 2K5 franchise in a morning memo to investors today. The comments seem to have had a positive effect on the publisher's stock: shares of the Grand Theft Auto publisher jumped just over a dollar on the Nasdaq today. As if publishing the popular Grand Theft Auto: San Andreas wasn’t enough, McNealy believes the ESPN 2K5 games will outperform initial target sales numbers thanks to the $19.99 price tag on ESPN NFL 2K5, ESPN NBA 2K5, and ESPN NHL 2K5. McNealy explains his perception that Take-Two management looked to the price cut to grow the ESPN brand and increase the franchise's user base, as well as shift investor perception that Take-Two is merely a one-franchise publisher (of GTA). And although Take-Two is calling this an “investment year,” McNealy predicts the publisher is likely to walk away from the year having generated over $51 million in revenue against $45 million in development and marketing costs spent for all the ESPN 2K5 games. McNealy's revenue figures include the busy holiday season yet to come. In addition, he reminds investors that ESPN NBA 2K5 has only one month at retail under its belt. McNealy believes his findings have proved that the company's sports lineup can be profitable at a $19.99 price point--the likely sticker price for the current generation product next year as well. McNealy closes his memo with a number of takeaway points. The following items all flow from his initial assessment that "the ESPN franchise has already overachieved even Take-Two's expectations," and that the ESPN brand has already proven its revenue-generating mettle. 1. Take-Two has established the ESPN franchise value at $20, meaning for current-generation consoles, the ESPN 2K6 games next year will likely stay at $20 (although next-gen versions may be priced higher). He explains the pricing will stay at $20 because the graphics capabilities of the games are close to maxed out at this point of the cycle and online gameplay has already been introduced. 2. Associations with the NFL are considerably stronger today than five years ago, with ESPN broadcasting Sunday Night Football and handling half-time duties for Monday Night Football. 3. If Take-Two keeps the game at $20, it would likely erode additional market share from EA and Madden. While Madden sales were up in August and September a combined 5 percent, September sales alone were down over 25 percent. The bigger Take-Two's market share is this week, McNealy says, the stronger the opportunity to grow that market share in a year. Looking ahead, McNealy says Take-Two could raise or beat its January quarter guidance, but "we are not going to make that call yet simply because we want to see the October retail sales data first." NPD October stats are due to its subscribers and analysts on November 11. Take-Two reports earnings from the Aug-Oct quarter in late December. By Tim Surette -- GameSpot Any questions. Peace

Yeah, I have a question. What's your point?

That was speculation. Show me the numbers. I want to see where Take Two made money on NFL2K5. Spare the projections.

[Braylon]

Quote: Originally Posted by coogrfan

From a purely tactical standpoint, the $20.00 price point was brilliant. VC doubled 2k4's total sales in the first month after 2k5 was released.

At a loss.

I could sell Corvettes all day tomorrow for $1 each and become the largest Corvette dealer in the nation in a matter of hours. That doesn't mean it's a brilliant move.

[rudyjuly2]

Quote: Originally Posted by Braylon

At a loss. I could sell Corvettes all day tomorrow for $1 each and become the largest Corvette dealer in the nation in a matter of hours. That doesn't mean it's a brilliant move.

Take Two still made money last year although at a very small percentage. The $20 was to get market share which they got in spades but they didn't lose money.
http://www.gamespot.com/news/2004/12...s&subj=6115592

Why are you so critical and argumentative Braylon? You are only registered as of this month. If you are a Madden fan, go hang out there. You seem to love arguing with everybody and spreading doom and gloom everywhere.

[grunt]

Quote: Originally Posted by Braylon

At a loss. I could sell Corvettes all day tomorrow for $1 each and become the largest Corvette dealer in the nation in a matter of hours. That doesn't mean it's a brilliant move.

True, but Corvettes cost $50,000 and a videogame cost 40-50 bucks a game.

Here are the sales figure:

First, here are some hot-off-the-press NPD sales figures (thru December 04):

Madden 05:
PS2 - 2,850,065
XBOX - 1,076,975

ESPN 2K5:
PS2 - 1,534,196
XBOX - 1,098,197

I remember on this board when people was discussing if ESPN could sell a million, even at this price point. I remember when Madden was outselling ESPN 10-1 last year across platforms. This year EA still sold more but clearly they lost the market share big time. T2 slowed their sales and made them cut their prices during Christmas season and they made EA spend over billion dollars to try to compete and kill competition.

T2 clearly won the first round and gamers got a great game.

[blackceasar]

From someone who has spent that past 8 years working inside a huge marketing/advertising firm here is another reason why EA and ESPN made good moves on thier own behalves. Its about BRANDING.

Whats the biggest Brand in sports video games? Regarldess if you think they suck or not. EA. Whats the biggest name in sports broadcasting wether you think they suck or not? ESPN.

This is called co-branding. ESPN will piggyback on EA to get ESPN's name out even more. They will use EA's video games as just another avenue to push thier own marketablitiy up as a sports network. EA in return will piggyback on ESPN's vice like grip on the Sports network industry to further make thier product visible to everyone.

You have to understand not everyone who LOVES to watch ESPN every day is nescessarily a video game owner or player. You get these people who watch epsn but arent gamers and you start having Madden and EA sports tittles popping up in thier face all the time, some of these people out of curiosity are going to go see what all the hype is about. They are going to think subconsiouly at the least to themselves "hmmm.. i love my ESPN network, i love sports, they are really showing alot of this EA Sports game stuff on thier network...let me check it out". They BAM EA has just tapped a market that they didnt have before which in turn is going to turn even MORE profits. Also 90% of these people who watch ESPN but DONT play video games will turn out to be gamers of the "casual gamer" type when they first take thier plunge into this whole sports video game thing.

In return EA will have just increased it's consumer base, and increased the percentage of thier consumers who are casual gamers as opposed to die hard gamers. The more casual gamers they have buying thier product the less they have to innovate. the less money they have to spend to innovate..and the less WE the real die hard gammers will matter to EA in the overall scope of things. I have worked in big business enough to know that what they say when the press is in thier face and what they say in board rooms are NOT the same thing. Companies have a loyalty to themselves first. ALL companies. Can EA possibly make a worthy product and still fatten thier pockets they way they would like to? Sure its possible.. BUT if they see they can increase thier own profits doing as little for us as possible, thats what they are gonna do. Its kinda like if I make a product and it costs me 10 bucks to make and I sell it for 50 bucks and a million people buy it. Great. If I can get lazy, make the product for 5 bucks in turn pissing off some of my other customers but picking up new "casual" ones to replace the pissed of ones, im gonna do it. I havent lost any customers and i just made myself ALOT more money.

[grunt]

Quote: Originally Posted by blackceasar

From someone who has spent that past 8 years working inside a huge marketing/advertising firm here is another reason why EA and ESPN made good moves on thier own behalves. Its about BRANDING. Whats the biggest Brand in sports video games? Regarldess if you think they suck or not. EA. Whats the biggest name in sports broadcasting wether you think they suck or not? ESPN. This is called co-branding. ESPN will piggyback on EA to get ESPN's name out even more. They will use EA's video games as just another avenue to push thier own marketablitiy up as a sports network. EA in return will piggyback on ESPN's vice like grip on the Sports network industry to further make thier product visible to everyone. You have to understand not everyone who LOVES to watch ESPN every day is nescessarily a video game owner or player. You get these people who watch epsn but arent gamers and you start having Madden and EA sports tittles popping up in thier face all the time, some of these people out of curiosity are going to go see what all the hype is about. They are going to think subconsiouly at the least to themselves "hmmm.. i love my ESPN network, i love sports, they are really showing alot of this EA Sports game stuff on thier network...let me check it out". They BAM EA has just tapped a market that they didnt have before which in turn is going to turn even MORE profits. Also 90% of these people who watch ESPN but DONT play video games will turn out to be gamers of the "casual gamer" type when they first take thier plunge into this whole sports video game thing. In return EA will have just increased it's consumer base, and increased the percentage of thier consumers who are casual gamers as opposed to die hard gamers. The more casual gamers they have buying thier product the less they have to innovate. the less money they have to spend to innovate..and the less WE the real die hard gammers will matter to EA in the overall scope of things. I have worked in big business enough to know that what they say when the press is in thier face and what they say in board rooms are NOT the same thing. Companies have a loyalty to themselves first. ALL companies. Can EA possibly make a worthy product and still fatten thier pockets they way they would like to? Sure its possible.. BUT if they see they can increase thier own profits doing as little for us as possible, thats what they are gonna do. Its kinda like if I make a product and it costs me 10 bucks to make and I sell it for 50 bucks and a million people buy it. Great. If I can get lazy, make the product for 5 bucks in turn pissing off some of my other customers but picking up new "casual" ones to replace the pissed of ones, im gonna do it. I havent lost any customers and i just made myself ALOT more money.

Was it worth close to a billion dollars over 15 years. Tons of things can happen to market place in 15 years. For example, if someone would have said that CNN would be replace by another all cable news network, people would have laugh you out the building.

What if Rupert make the same move espn that he made on cnn. I think the cost was too high.

[blackceasar]

Well WILL have to wait and see what happens but the people in EA arent stupid. Trust me. They have had focus groups, independent marketing execs, business analysts, etc looking this over for a LOOONG time. Probably longer than they are letting on. Sure ESPN could fall and not be the number one name in sports TV 15 years from now but that is almost unlikely. ESPN and EA made an investment in each other (although EA forked up the cash, ESPN can just get out the agreement because EA made a game ESPN didnt like for a year or two..it aint that simple) THey are married to each other.

You dont marry some chick who banged the whole football team just last year. Its about track record. EA has made big bucks.. ESPN has made big bucks. In every corporate deal some risk is involved. Trust me, if they felt this would be bad for either company, one or the other would have backed out of it.

All I wanna know is if I HAVE to buy madden from here on out. Can I at least get Michael Irvin, Chris Berman, and Tom Jackson doing a show or something in the game? Gotta love those fools! ha!