Madden Overcharged Gamers By $925 million

[outlaw221]

Madden overcharged gamers by up to $925 million, says economist
by Mike Smith
Buzz up!
July 16 11:44 A.M.


Are you a fan of EA's epic Madden series? You -- and gamers like you -- could have been bilked out of almost a billion dollars, according to a Michigan professor of economics.

Jeffrey MacKie-Mason's estimate came in a lengthy declaration filed in support of the plaintiffs in a class-action lawsuit against publisher EA. The suit alleges that the world's second-largest publisher used its exclusive deal with the NFL to eradicate competing football video games -- notably Take Two's NFL 2K series -- and then hiked Madden prices to their current $60.

Industry analysts have been critical of the scale of MacKie-Mason's estimate, and the professor himself admitted in the filing that it was a "simplistic exercise" -- but also notes that under Californian anti-trust law, any damages assessed would be trebled. In other words, a loss in this case could prove expensive for EA.

How likely is that? Your guess is as good as ours, but there's more to this fight than video games. In 2001, a comparable situation arose when the NFL signed a ten-year exclusive deal with Reebok to produce hats carrying team branding. As a result, a competing headwear manufacturer shut out by the deal sued both the NFL and Reebok under anti-trust laws. The NFL won, but the fight's not over: the case could well be on its way to the Supreme Court this year.

Via GamePolitics.

http://videogames.yahoo.com/events/p...nomist/1334923

[Segagendude]

And???

[cha0ss0ldier]

Quote:

The suit alleges that the world's second-largest publisher used its exclusive deal with the NFL to eradicate competing football video games -- notably Take Two's NFL 2K series -- and then hiked Madden prices to their current $60.

Does the idiot not realize all games went up to $60.

[kenlovin]

yea every next gen game is 60 bucks, someone needs to do their hwk

[ProjectSRT]

Quote: Originally Posted by cha0ss0ldier

Does the idiot not realize all games went up to $60.

Thats what i said. I mean dont get me wrong, i am ALL for EA being stripped of the exclusive license as im almost positive there were some underhand dealings that went down, but this argument is one of the worst against EA iv heard. I think the only point they have is that while NFL 2K5 was out, EA lowered its price on Madden and then once they gained that license they went back to their orig price, but its not like they increased their price larger than any other game developer. Once this gen hit, games had to go up to 60 bux to help cover the growing costs of development.

[WildFireXXI]

What?! Business?! on MY Earth!?!?

[titansftw]

Quote: Originally Posted by cha0ss0ldier

Does the idiot not realize all games went up to $60.

I believe the claim is that the game that was released the same year EA purchased the license was originally released for a lower price, and then the price was raised for that particular product after the license was purchased. Either that or it was that EA lowered the price of it's game to compete with 2k's low price, and then raised it up after the license was purchased.

least thats what i heard.

[ACUSC]

yeah as stated above....every new game always is 60 bucks.