Madden 09 Dominates US Sales in August

[rudyjuly2]

Re: Madden 09 Dominates US Sales in August

Remember, EA just reported a net loss for the first quarter of the 2009 fiscal year of USD $ 95 million. Whether they're happy with the exclusive or not, EA's paying for it through the nose...and sooner or later, the stockholders are gonna be upset. When that happens, the people who negotiated the exclusive are going to be on the street.

http://www.gamesindustry.biz/article...-of-95m-for-q1

But that report doesn't say why they lost money. You can't assume Madden lost them money. It could have been for a bunch of other projects while Madden kept them from losing more. Who knows?

[GTheorenHobbes]

Re: Madden 09 Dominates US Sales in August

But that report doesn't say why they lost money. You can't assume Madden lost them money. It could have been for a bunch of other projects while Madden kept them from losing more. Who knows?

Think about it, Rudy. Madden used to sell 5 million copies before they had the exclusive. According to the numbers you posted (I haven't verified), they paid $300 million for the exclusive. Their development costs haven't decreased...if anything, they've increased on next gen. And they're not really making any more sales...they've pretty much stayed flat since they've gotten the exclusive. So, they're paying a bunch more money now (development costs PLUS the exclusive license fees) than they used to, and they're not really bringing that much more in. Maybe I'm missing something, but I don't see how Madden could NOT be a big cause of their falling profits these last couple of years. To me it seems like a matter of simple math. Again, maybe I'm missing something.

[NYyankz225]

Re: Madden 09 Dominates US Sales in August

There are a lot of reasons for EAs net loss. I can list a few off the top of my head.

Merger of Activision/Blizzard

Lower than expected sales of HD consoles (Primarily the flop of the PS3)

Underestimated success of the Wii



They've been scrambling to reallocate their development studios and it's taken a toll on them. Madden has been the least of their worries. I like when people assume things without any knowledge on the subject.

[GTheorenHobbes]

Re: Madden 09 Dominates US Sales in August

There are a lot of reasons for EAs net loss. I can list a few off the top of my head.

Merger of Activision/Blizzard

Lower than expected sales of HD consoles (Primarily the flop of the PS3)

Underestimated success of the Wii



They've been scrambling to reallocate their development studios and it's taken a toll on them. Madden has been the least of their worries. I like when people assume things without any knowledge on the subject.

My post relied upon simple math (additional costs due to exorbitant exclusive license fee paid plus stagnant sales of Madden). How would lower than expected sales of next gen consoles or the underestimated success of the Wii result in reduced profits for EA?

I like when people refuse to admit the obvious.

[GamingJones]

Re: Madden 09 Dominates US Sales in August

A 2% growth when consumer spending is way down is a plus for EA.

Their losses this year have been tied to quite a few acquisitions, not the hardcore fans displeasure with Madden.

[GTheorenHobbes]

Re: Madden 09 Dominates US Sales in August

A 2% growth when consumer spending is way down is a plus for EA.

Their losses this year have been tied to quite a few acquisitions, not the hardcore fans displeasure with Madden.

I'd bet a bag of donuts that NHL, FIFA and probably even Live will have greater than 2% increases in sales numbers this year. Make a great game, even in a poor economy, and the numbers will be there.

[NYyankz225]

Re: Madden 09 Dominates US Sales in August

How would lower than expected sales of next gen consoles or the underestimated success of the Wii result in reduced profits for EA?

It does when you put all your eggs in the "next gen basket" and totally disregard the Wii. You've got a finite amount of resources ($, labor, time, etc). Every dollar you spend on next gen console development is a dollar you could have spent on Wii development (aka opportunity costs). Companies like Ubisoft played their cards right and had moderate hits on the Wii when it released. EA had to scramble AFTER the fact to get up to speed on Wii development and reorganize their development studios (including the creation of an entirely new Wii only studio). These things cost money, especially when you need it done expeditiously. But these decisions obviously aren't able be changed at the drop of a hat. Game budgets and timelines are made over months and often years, so it takes AT LEAST a year to turn the ship around (or at least add another ship that's going the Wii's way ). EA got caught napping and now they've paid the price in lost profits.

Madden with the NFL is the only sure shot they've got YOY. They'd be idiotic to let it go.

[GTheorenHobbes]

Re: Madden 09 Dominates US Sales in August

It does when you put all your eggs in the "next gen basket" and totally disregard the Wii. You've got a finite amount of resources ($, labor, time, etc). Every dollar you spend on next gen console development is money you could have spent on Wii development. Companies like Ubisoft played their cards right and had moderate hits on the Wii when it released. EA had to scramble AFTER the fact to get up to speed on Wii development and reorganize their development studios (including the creation of an entirely new Wii only studio). These things cost money, especially when you need it done expeditiously. But these decisions obviously aren't able be changed at the drop of a hat. Game budgets and timelines are made over months and often years, so it takes AT LEAST a year to turn the ship around (or at least add another ship that's going the Wii's way ). EA got caught napping and now they've paid the price in lost profits.

Madden with the NFL is the only sure shot they've got YOY. They'd be idiotic to let it go.

I don't disagree with anything you're saying here. But you're talking about profits (from the Wii) that EA never had. You can't lose profits from Wii sales that weren't there to begin with. I'm just saying that, if EA is paying $60 million a year more now to make Madden (using Rudy's numbers), and sales are relatively flat from where they were 4 years ago, it would seem that some part of that $95 million loss is due to the exclusive. Again, maybe I'm wrong.

[MikeRo72]

Re: Madden 09 Dominates US Sales in August

EA hasn't gotten $1 from me in 3 years and counting. Not until they completely rebuild the Madden engine. It's trash, they simply get their sales off of brand name alone and that will only last so long.

[xV3L0CiTY]

Re: Madden 09 Dominates US Sales in August

EA hasn't gotten $1 from me in 3 years and counting. Not until they completely rebuild the Madden engine. It's trash, they simply get their sales off of brand name alone and that will only last so long.

Just wait until John Madden refuses, or passes away. EA will be f'd.

[rudyjuly2]

Re: Madden 09 Dominates US Sales in August

Think about it, Rudy. Madden used to sell 5 million copies before they had the exclusive. According to the numbers you posted (I haven't verified), they paid $300 million for the exclusive. Their development costs haven't decreased...if anything, they've increased on next gen. And they're not really making any more sales...they've pretty much stayed flat since they've gotten the exclusive. So, they're paying a bunch more money now (development costs PLUS the exclusive license fees) than they used to, and they're not really bringing that much more in. Maybe I'm missing something, but I don't see how Madden could NOT be a big cause of their falling profits these last couple of years. To me it seems like a matter of simple math. Again, maybe I'm missing something.

I completely agree that EA will be making less money than they were on Madden. But less money doesn't mean losing money on Madden necessarily. EA chose to make less money to make sure the competition was gone. I'm sure Madden still rakes in the cash.

[Ian_Cummings]

Re: Madden 09 Dominates US Sales in August

I don't disagree with anything you're saying here. But you're talking about profits (from the Wii) that EA never had. You can't lose profits from Wii sales that weren't there to begin with. I'm just saying that, if EA is paying $60 million a year more now to make Madden (using Rudy's numbers), and sales are relatively flat from where they were 4 years ago, it would seem that some part of that $95 million loss is due to the exclusive. Again, maybe I'm wrong.

Yep, you're wrong.

Just think about it - to post a loss, there has to be more money spent than is earned. Madden obviously doesn't fit in that category...the game is made for less money than is earned. As NYYanks said - it's one of the safest "bets" in EA.

[O-Zoan]

Re: Madden 09 Dominates US Sales in August

As much as I hate EA for not caring or listening whatsoever to the customers and fans complaint about the glitches and all the bs in the game I still love football and will continue to buy the Madden games

[GTheorenHobbes]

Re: Madden 09 Dominates US Sales in August

it's one of the safest "bets" in EA.

I appreciate your presence on this board so no disrespect intended, but therein lies the problem. If Madden wasn't such a safe "bet," then maybe we'd have more than 1 playable camera angle by now (perhaps we'd even have a good behind the Defensive Line cam or even a playable Broadcast view). Maybe suction blocking and in-game saves and the ridiculous OL/DL interaction and other well-known deficiencies wouldn't still be part of the discussion when talking about Madden.

On a personal level, good luck turning this franchise around...I was one of the guys who bought the very first Madden on the Sega Genesis (turning many of my college friends away from Tecmo back in the day) and I'd really like to feel good about spending money on a Madden game again. I feel suckered for having bought it this year, when I fell for the hype but cannot make it through a game on 10 minute quarters without being bored to tears. Getting the thread back on topic, I do feel that if you guys can show some of the innovation and improvements that we're seeing out of NHL, FIFA or even Live, you'll see much more than the 2% increase in sales that you got this year. I was one of the 2% this year...but I won't be next year if MAJOR changes aren't made, no matter how badly I want to play a game using the Steelers.

[Jitters_1981]

Re: Madden 09 Dominates US Sales in August

I appreciate your presence on this board so no disrespect intended, but therein lies the problem. If Madden wasn't such a safe "bet," then maybe we'd have more than 1 playable camera angle by now (perhaps we'd even have a good behind the Defensive Line cam or even a playable Broadcast view). Maybe suction blocking and in-game saves and the ridiculous OL/DL interaction and other well-known deficiencies wouldn't still be part of the discussion when talking about Madden.

On a personal level, good luck turning this franchise around...I was one of the guys who bought the very first Madden on the Sega Genesis (turning many of my college friends away from Tecmo back in the day) and I'd really like to feel good about spending money on a Madden game again. I feel suckered for having bought it this year, when I fell for the hype but cannot make it through a game on 10 minute quarters without being bored to tears. Getting the thread back on topic, I do feel that if you guys can show some of the innovation and improvements that we're seeing out of NHL, FIFA or even Live, you'll see much more than the 2% increase in sales that you got this year. I was one of the 2% this year...but I won't be next year if MAJOR changes aren't made, no matter how badly I want to play a game using the Steelers.

What I'm wondering, after playing nhl 09, is how much more they are spending on nhl than madden in terms of development costs. Madden has seemed to just wade on the surface for the past 3 years while nhl has made huge jumps in both creativity and new features and modes (that actually work). It has left me scratching my head why they can do it with nhl and fifa and not seem to do it with Madden. Is madden harder to program than nhl? Is it the competition factor? Is it because NHL isn't as "safe a bet" as madden? I'm not trying to troll or be disrespectful to Ian or anyone else but I would love to get an answer on this?