Beware The Ides Of March For The NFL Exclusive License

[atc43]

I think people underestimate how big the 2K name brand is in the eyes of consumers. Im sure everyone sees that NBA2K is a hell of a representation of the actual sport and that EA's NBA Live is no longer around.

My thought is that the average consumer would see 2K on the box and think "Hey they make that awesome basketball game, I wonder if the football game is just as good!" and end up purchasing it.

Of course this is assuming the EL does end and 2K are willing to join in on NFL Game Development and they released a product that was just as good if not better than Madden.

[Big FN Deal]

Quote: Originally Posted by kjcheezhead

That's not a good analogy imo. An exclusive beer means I have to drink that brand at the stadium or NFL sponsered events. The other brands don't cease to exist entirely. The video game exclusive is unique in this regard.

C'mon KJ don't be the analogy police, lol, I stated that, to the NFLPA, it's likely looked at the same. As in just a side deal to bring in more revenue not as something that is a major effect on the NFL's core fan base. I would tend to agree because even with all my contempt for the NFL exclusive, I still enjoy and support the NFL.

[Clemmie]

Quote: Originally Posted by atc43

I think people underestimate how big the 2K name brand is in the eyes of consumers. Im sure everyone sees that NBA2K is a hell of a representation of the actual sport and that EA's NBA Live is no longer around. My thought is that the average consumer would see 2K on the box and think "Hey they make that awesome basketball game, I wonder if the football game is just as good!" and end up purchasing it. Of course this is assuming the EL does end and 2K are willing to join in on NFL Game Development and they released a product that was just as good if not better than Madden.

Yes, NBA 2K is a proven top quality game. You forget to mention though, that EA Sports did the EXACT same thing to 2K when it comes to NHL Hockey (2K couldn't compete and disappeared). You also forget that MLB 2K, the one license 2K sports did secure, was beyond a travesty. Their version of MLB isn't worth the disk it's printed on, and in the end, Xbox 360 owners haven't even had a viable MLB game this whole generation.

As much as i respect 2K's version of the NFL, it's been YEARS since they have built a football game let alone moving forward a "next gen" engine.

2K has ONE sports title, NBA. The other, MLB is terrible, and they don't even bother making NHL anymore.

[Big FN Deal]

Quote: Originally Posted by atc43

I think people underestimate how big the 2K name brand is in the eyes of consumers. Im sure everyone sees that ...

Quote: Originally Posted by Clemmie

Yes, NBA 2K is a proven top quality game. You forget to mention though, that EA Sports did the EXACT same thing to 2K ...

A Mod has already stated to avoid this kind of stuff ITT, it was created to discuss the possibilities of the EL ending or not, given the expiration continues to draw nearer, not to be specific about other gaming companies. I think it's within the topic to discuss in generalities if companies might be willing to attempt another game but not along the lines of the quoted posts and some other stuff ITT.

I don't want the thread closed and Mods is there anyway just to delete these posts I have quoted to avoid anyone else feeling the need to reply I would appreciate it.

[Clemmie]

Quote: Originally Posted by Big FN Deal

A Mod has already stated to avoid this kind of stuff ITT, it was created to discuss the possibilities of the EL ending or not, given the expiration continues to draw nearer, not to be specific about other gaming companies. I think it's within the topic to discuss in generalities if companies might be willing to attempt another game but not along the lines of the quoted posts and some other stuff ITT. I don't want the thread closed and Mods is there anyway just to delete these posts I have quoted to avoid anyone else feeling the need to reply I would appreciate it.

I apologize, didn't mean to veer the thread of course by any means. I hope the EL ends, but based on the NFL's history, i'd be shocked to see it happen.

Last year the wife and i, who live in NYC are huge Yankee fans, decided to drive to Cleveland to check out Yanks-Indians in Progressive field (beutiful park BTW.). Afterward, we drove to Canton, OH to check out the pro football HOF. After visiting the whole complex, before exiting, they had an entire section of Madden football. Every years box or case showcased on the wall, and an Xbox 360 hooked up running that years game.

Forgive me for being skeptical of the EL ending anytime soon. Only way i see it happening is if Madden isn't selling huge numbers every year, then it may not make business sense for them to renew.

[Big FN Deal]

Quote: Originally Posted by Clemmie

I apologize, didn't mean to veer the thread of course by any means. I hope the EL ends, but based on the NFL's history, i'd be shocked to see it happen. Last year the wife and i, who live in NYC are huge Yankee fans, decided to drive to Cleveland to check out Yanks-Indians in Progressive field (beutiful park BTW.). Afterward, we drove to Canton, OH to check out the pro football HOF. After visiting the whole complex, before exiting, they had an entire section of Madden football. Every years box or case showcased on the wall, and an Xbox 360 hooked up running that years game. Forgive me for being skeptical of the EL ending anytime soon. Only way i see it happening is if Madden isn't selling huge numbers every year, then it may not make business sense for them to renew.

That was definitely a scary story for me just picturing Madden in the NFL HOF, lol. Seriously though, I can understand that, considering the large amount of money given to the NFL by EA likely built that exhibit. My point being how things are is not automatically an indication of how they are going to be.

Yeah the NFL and EA seem tight now but at the end of the day it's all about business and the moment the EL is not in the best interest of either one of them, which currently could be the case for EA, something will change. We will have to wait and see what.

[kjcheezhead]

Quote: Originally Posted by Big FN Deal

C'mon KJ don't be the analogy police, lol, I stated that, to the NFLPA, it's likely looked at the same. As in just a side deal to bring in more revenue not as something that is a major effect on the NFL's core fan base. I would tend to agree because even with all my contempt for the NFL exclusive, I still enjoy and support the NFL.

I don't think the NFLPA is that naive Big. As far as I know, there has been next to zero negative fan reaction to the NFL choosing an official beer, soft drink, apparel, etc. EA's exclusive on the other hand has been very unpopular, even to many who continue to enjoy Madden.

The NFLPA and the NFL intentionally ignore the complaints because this little side deal is the second most lucrative behind the tv deals. They are too busy counting money to care and besides that, EA gets most of the heat anyways.

it's all about the money with no reagard for fans. If there was this much backlash to Old Spice being the NFL's offical deoderant, the deal would be ended in a heartbeat.

[Crimsontide27]

Quote: Originally Posted by Clemmie

I apologize, didn't mean to veer the thread of course by any means. I hope the EL ends, but based on the NFL's history, i'd be shocked to see it happen. Last year the wife and i, who live in NYC are huge Yankee fans, decided to drive to Cleveland to check out Yanks-Indians in Progressive field (beutiful park BTW.). Afterward, we drove to Canton, OH to check out the pro football HOF. After visiting the whole complex, before exiting, they had an entire section of Madden football. Every years box or case showcased on the wall, and an Xbox 360 hooked up running that years game. Forgive me for being skeptical of the EL ending anytime soon. Only way i see it happening is if Madden isn't selling huge numbers every year, then it may not make business sense for them to renew.

Well, in order for them to renew then it has to make economical sense. There are reasons to support both sides of the equation on wether they renew or not.

First, the exclusive deal was signed back in 2004 and was to last until 2009 and then it got extended. Now, the years that this occured are significant because the market was much different then, than it is now.

Back in 2003 you started to see EA stock on the rise and around 2004 it was trading around $45 - $50ish dollars per share and EA was on the rise. It made great sense to buy out the competition at that time and protect is major cash cow.

Fast forward to today and its barely trading above $18 per share, and you can see that the stock price has dropped over 40% since this deal took place.

Now you have a company that is valued at almost only half of what it was when this deal took place. You also have to factor in the SWToR diaster that has cost them upwards of $300m as well, and EA isnt doing very well at all.

EA was doing well until around September 08 and the stock prices started sinking like a ship going from upwards of $50 per share in May of 08 all the way down to $16 per years end. Recently the stock even showed signs of touching the $12 per share region around Nov 2012.

What we have witnessed is a huge collapse of one of the top gaming companies of our generation.

Madden has not particularly sold well this generation, at least not near enough to warrant another $300m deal. If you look at sales figures for this generation, its not very good considering they were the only NFL product on the market. One unit of measurement we use in the industry is proliferation. Basically you are looking to formulate a ratio of games sold : systems sold. I wont get into the specfics of what the target ratio was, but its not reached its target by any stretch of the imagination.

Right now you have no companies that have made an NFL product in darn near a decade and as such you have an entire generation of comsumers out there that have never heard of anything other than Madden, and thus brand name alone would sell the game to the new generation when the next gen releases soon.

Basically it boils down to sales numbers and figures. Madden has not sold well enough to justify another $300m deal for exclusive rights and they have a brand new generation of people to sell to that know nothing different.

We just dont see any numbers that could back up another huge exclusive deal with the way that EAs finances are. EA is on the ropes right now financially and cant afford to take another massive hit like the Madden deal or Swtor diaster.