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Old 11-20-2009, 11:48 PM   #161
Only1LT
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Join Date: Jul 2009
Location: NYC
Re: Xbox live activity November 09

Quote:
Originally Posted by roadman
One last question from me on this whole thing.

Where are you arriving at the $500 million dollar figure? Is this public knowledge or something that was pulled from out of a hat from a gaming internet source? I don't think the public knows exactly what the amount is.

I'm hearing from an ex-EA employee is close to $15 million per year. So, that would put it at currently $150 million up to this point.

I'm more inclined to go with an ex employee of EA's vs some source over the internet.

All I'm saying the $150 million is much less than the $500 million that you are portraying.

In the end, though, a loss is a loss. If you factor in $15 million a year on expenses vs $100 million/yr, the loss is much less on the balance sheets.

Also, you need to remember that EA's stock soared after the deal was made. I'm assuming some people made a lot of money when that happened.
I had seen that number in an article before. I will try to dig again to see if I can find it. I don't think the exact dollar amount was ever released, but there have been some leaks that hinted at that number. Again, I will check again, but as you said it doesn't matter. Whether it is $500mil, or $150mil, there is no question that it is more than they were paying for the non exclusive license. So if you are spending more to produce the title, and a huge part of that increased spending went to eliminating competition, with the expectation that your sales would increase exponentially and that it would offset the extra cost, and make your product even more synonymous with Football, being that it is the only NFL game (and NCAA game, let's not forget that either) and after all that your sales not only don't stay at static levels, but decline year after year, well... do I really need to finish this run on sentence or has this point finally been driven home and beaten to death, and then taken out back, and shot with a 12 gauge?
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