Why the NFL’s Labor Strife Might Be the Best Thing That Happened to Madden (Kotaku)

[capn_razzamataz]

Quote: Originally Posted by dickey1331

Ok and you’re still stuck with one company. What if someone doesn’t like NBA 2K and liked Live/Elite but now they don’t get to play it because it doesn’t exist anymore. Competition should make both products better.

I kind of get what you're trying to say, but that example doesn't work very well because the Live/Elite franchise isn't dead; they're just taking a year "off" to improve/refine their game. 2k kept improving at a rate that EA couldn't keep up with. EA took a gamble and tried something new and innovative, but couldn't get the game to a releasable state within one year/cycle. The person that that likes EA's product more will get their new game; just a year later and far more polished and complete than if EA had released it on time.

Even if EA did drop out of the basketball videogame market altogether, it would've been because 2k constantly improved their game at a rate that EA couldn't keep up with; not because 2k inked a deal with the NBA.

EDIT: To add to my last point: if EA (or anybody else) ever wanted to enter the basketball videogame market, they would be able to do so at any point unlike the NFL deal.

[SageInfinite]

Yea people forget NBA Live used to constantly outsell NBA 2k, despite 2k having the better game almost every year. It wasn't until this gen(I think 2k9 actually) that NBA 2k started to also win the sales war. Who knows if this would've happened with Madden/2K as well.

[RGiles36]

Quote: Originally Posted by LiquorLogic

I have a strong feeling that when this console generation is over, the exclusive license will also end. The license is so darn expensive; nobody, but EA, is paying for it. The NFL is creating a situation in which they'll have virtually no leverage with the exclusive license because there's only one bidder.

Why do you feel as though the exclusive license will be over w/ this generation? Even if there's only one bidder (EA), why would EA pass up on the opportunity to continue to own the NFL videogame market?

[LiquorLogic]

Quote: Originally Posted by rgiles36

Why do you feel as though the exclusive license will be over w/ this generation? Even if there's only one bidder (EA), why would EA pass up on the opportunity to continue to own the NFL videogame market?

Because it seems as if EA doesn't want to extend deal, certainly not at the current price, after it expires. This deal has a give and take feel to it: EA gets some relief, due to a possible lock out, and the NFL gets an extra year of security.

If EA is so keen on the license, and attends to keep it, it would be odd for the NFL to ask for an extra year ,when negotiating , if they know that EA wants to extend the deal anyway. Why ask for extra year when EA is going to give that to you regardless ?

Why would EA pass up on the opportunity to continue to own the video game market ? Let me ask you this, when hasn't EA owned the football video game market ? Even when 2k5 was out, EA owned the video game market and outsold 2k5. Madden 05 outsold Madden 11. Why keep paying this outrageous price for the exclusive license when you sold more copies without it ?

Here's my theory, which may change, regarding the history of the exclusive license. EA was in fact scared of the competition, in 2005, so they bought the license. In 2008 when they extended the deal; I believe they did so out of fear of APF 2k9, which is why they inked that deal to get the rights to the retired players and effectively derailed APF 2k9. They also extended the exclusive deal in 2008. Now, who does EA really have to fear ? The last game 2k put out was in 2007. The last NFL game 2k put out came out in 2004. When next gen hits, it will have been six and nine years, respectively, since 2k released a football game. 2k football is dead, and Natural Motion football was stillborn.

Who does EA have to fear that justifies paying for exclusivity ?

[GiantBlue76]

Quote: Originally Posted by LiquorLogic

Because it seems as if EA doesn't want to extend deal, certainly not at the current price, after it expires. This deal has a give and take feel to it: EA gets some relief, due to a possible lock out, and the NFL gets an extra year of security. If EA is so keen on the license, and attends to keep it, it would be odd for the NFL to ask for an extra year ,when negotiating , if they know that EA wants to extend the deal anyway. Why ask for extra year when EA is going to give that to you regardless ? Why would EA pass up on the opportunity to continue to own the video game market ? Let me ask you this, when hasn't EA owned the football video game market ? Even when 2k5 was out, EA owned the video game market and outsold 2k5. Madden 05 outsold Madden 11. Why keep paying this outrageous price for the exclusive license when you sold more copies without it ? Here's my theory, which may change, regarding the history of the exclusive license. EA was in fact scared of the competition, in 2005, so they bought the license. In 2008, when they extended the deal, I believe they did so out of fear of APF 2k9, which is why they inked that deal to get the rights to the retired players and effectively derailed APF 2k9. They also extended the exclusive deal in 2008. Now, who does EA really have to fear ? The last game 2k put out was in 2007. The last NFL game 2k put out came out in 2004. When next gen hits, it will have been six and nine years, respectively, since 2k released a football game. 2k football is dead, and Natural Motion football was still born. Who does EA have to fear that justifies paying for exclusivity ?

That's not really what he's saying. Basically, there really isn't an "exclusive" license anymore. All of the other companies have been eliminated. They have no game to build on, there is no real worthwhile cause to start one. What has essentially happened is the NFL got a TON of money for several years while the competition was put to death. Now that there is no competition, the value of having an "Exclusive" license is gone. EA is completely in the drivers seat now. From a business standpoint this is brilliant. It lowers their cost of production, (no need to push it when you are the only game), the competition is completely wiped out, and now you can basically tell the NFL, "we are the only company equipped to make an NFL game for you, this is our offer, take it or leave it".

[LiquorLogic]

Quote: Originally Posted by tazdevil20

That's not really what he's saying. Basically, there really isn't an "exclusive" license anymore. All of the other companies have been eliminated. They have no game to build on, there is no real worthwhile cause to start one. What has essentially happened is the NFL got a TON of money for several years while the competition was put to death. Now that there is no competition, the value of having an "Exclusive" license is gone. EA is completely in the drivers seat now. From a business standpoint this is brilliant. It lowers their cost of production, (no need to push it when you are the only game), the competition is completely wiped out, and now you can basically tell the NFL, "we are the only company equipped to make an NFL game for you, this is our offer, take it or leave it".

No, that's what I'm saying. He was saying, or asking, even though EA would be the only bidder for the exclusive license, why EA would turn down the opportunity to be own the football gaming market and not extend the license. I, like you, was pointing out that they already own the market whether that have the exclusive license or not, so why pay an arm and a leg for it ?

Why not go back to paying royalties and giving the NFL a percentage of Madden sales ?

I don't agree that another company can't, or won't, make an NFL football game. It won't over take Madden,in terms of sales, but if companies aren't paying out the you know what for licensing cost, and only give the NFL royalties and a percentage of sales, their games could be a financial success in their own right.

[roadman]

Quote: Originally Posted by LiquorLogic

I don't agree that another company can't, or won't, make an NFL football game. It won't over take Madden,in terms of sales, but if companies aren't paying out the you know what for licensing cost, and only give the NFL royalties and a percentage of sales, their games could be a financial success in their own right.

I understand what you are saying and I still feel that is an ideal world. In reality, what company has enough start up cash for R @ D and put out a football game? That company would be taking on a huge risk going up against the Madden name. If Madden sells 5 million copies, do you really think a company will sell more than 500,000 copies going up against Madden and become profitable?

The NFL won't give up exclusivity. EA might be in the drivers seat, but it's still an NFL driven game. I feel EA will be paying less for the exclusivity vs just royalties and a percentage of sales.

[adfletch71]

If 2k was too continue making a NFL game, I don't think madden would be selling 5 million copies. First off the 2k crowd wouldn't be buying madden, second if 2k was too build off of 2k5 presentation and have ALLPRO2K8 gameplay it would really hurt madden in its current state. Look at NBA today and MLB today implementation, its really adds to the immersion. If 2k was still in the game football wise, Madden would be selling a lot less in my humble opinion, but well never know that fact.