[Tyrant8RDFL]

Quote: Originally Posted by Only1LT

No I wouldn't call that disappointing at all. The linchpin is the exclusive. If you sell less than you did in 2005 but you don't have to spend $500mil, and you are competing in a marketplace with other rival Football games? That's good. Paying $500mil to eliminate all competition and you sell less than when you had competition and you didn't have to spend anywhere near $500mil to do it? Well that is just about the worst business decision that you could make. That's all I'm saying.

I agree with this all the way.

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 have also seen the figure of 500 million that EA paid for the license fee. I think if it is as low as you mentioned many would have battled EA for the license. At 500 million not anyone company could compete.

I'll see if I can dig it up. Shouldn't be to tough.