EA/NFL Extend NFL Exclusive License by One Year to 2013

[ryan36]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

Stop comparing the games guys, this is the madden forum

[Tchonz70]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

I'm not particually too happy about this either. I do remain skeptical and optimistic. Though I as well as everybody else have some serious doubt about this; here is the way I look at it and maybe I am right (I doubt it!)

Im hoping that it is a possibility that EA is pulling out all the stops. We as well as EA knew that they held an exclusive long term contract over a long period of time. With that being said, I believe that they were comfortable sitting on their hands and being able to do very little necessary and they weren't in serious jeopardy of losing their rights (until now, now that the contract was about to expire). I believe that there is a real possibilty that EA is going to give everything they have to make this the best possible game ever made. I believe they revealed ther plans to the NFL and the NFL was willing to roll the dice with a 1 year extension to see how well the game was made (as well as how consumers like 2012's product and how much drastically will the sales rise-Because the $ is what it all about). I don't think the NFL is stupid and knows this and that is why they only agreed to 1 year contract or else they would have just simply signed them to another long term contract.

However, If I predicted this right-I must give you a warning. If EA manages to sign a long term extension, expect the same thing Nothing significant hasn't really changed since 2007. So 2012 may be a great year but if they were to sign a 5 year Contract don't expect anything to change until 2018 as their liscense would be again in jeopardy just like it is now.

[droopizzle34]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

I'm not particually too happy about this either. I do remain skeptical and optimistic. Though I as well as everybody else have some serious doubt about this; here is the way I look at it and maybe I am right (I doubt it!)

Im hoping that it is a possibility that EA is pulling out all the stops. We as well as EA knew that they held an exclusive long term contract over a long period of time. With that being said, I believe that they were comfortable sitting on their hands and being able to do very little necessary and they weren't in serious jeopardy of losing their rights (until now, now that the contract was about to expire). I believe that there is a real possibilty that EA is going to give everything they have to make this the best possible game ever made. I believe they revealed ther plans to the NFL and the NFL was willing to roll the dice with a 1 year extension to see how well the game was made (as well as how consumers like 2012's product and how much drastically will the sales rise-Because the $ is what it all about). I don't think the NFL is stupid and knows this and that is why they only agreed to 1 year contract or else they would have just simply signed them to another long term contract.

However, If I predicted this right-I must give you a warning. If EA manages to sign a long term extension, expect the same thing Nothing significant hasn't really changed since 2007. So 2012 may be a great year but if they were to sign a 5 year Contract don't expect anything to change until 2018 as their liscense would be again in jeopardy just like it is now.

The NFL is happy with EA. That is why they always go to EA with an extension instead of opening up bidding. And I bet they re-negotiate again in 2013. I see no hope in sight,all we can hope for is EA to finally deliver a complete game....good luck with that hope...

[Only1LT]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

Hate to rain on your parade, here.

C,mon, you need to look at all the revenues streaming in, not just a slice of the pie.

1st, the difference is 1.6 million units. 6.96-5.36=1.6 million units.

The added revenue of MUT, DLC and and facebook sales.

Add it all together with the numbers not lying, and Madden could be in the black. We don't know because we don't know the variables of MUT, DLC and Facebook. I do know that MUT was very profitable for them.

Even if they are making enough money from the online extras, that doesn't mean that a sharp decline in sales isn't a huge cause for concern. If sales trend downward then the money made from online extras will also decrease.

If iPhone sales went down drastically, but the amount of money spent in the App Store increased to the point that they still broke even, or even scratched out a profit, do you think Jobs would be happy? Eventually current users will curb their online purchases. Without new customers to make new purchases, the well dries up.

I understand the point that you are making, and I'm not saying that the numbers, what ever they are because you can't really trust VGchartz, you certainly can't trust EA, are currently, or even will be, drastically down, but if they are, regardless of what they did with MUT et al, that is a huge concern.

You can't buy MUT without having the game. Without games sales, there are no MUT sales. The game sales will always be exponentially more important than the DLC.

Activision stands to sell a lot of DLC for COD because it's in a ridiculous number of people's hands. But if they didn't sell a single map pack (not possible) it wouldn't make much difference.

If EA is in a situation where they NEED Johnny to buy potential, or what ever the hell it is that they actually sell in that online DLC, just to pay the bills, then that is not a good position for them to be in (not saying that they are, this is just hypothetical). When the online extras are no longer extras, but actually essential to their bottom line, that's what I, as well as EA, would call a problem.

[roadman]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

Even if they are making enough money from the online extras, that doesn't mean that a sharp decline in sales isn't a huge cause for concern. If sales trend downward then the money made from online extras will also decrease.

If iPhone sales went down drastically, but the amount of money spent in the App Store increased to the point that they still broke even, or even scratched out a profit, do you think Jobs would be happy? Eventually current users will curb their online purchases. Without new customers to make new purchases, the well dries up.

I understand the point that you are making, and I'm not saying that the numbers, what ever they are because you can't really trust VGchartz, you certainly can't trust EA, are currently, or even will be, drastically down, but if they are, regardless of what they did with MUT et al, that is a huge concern.

You can't buy MUT without having the game. Without games sales, there are no MUT sales. The game sales will always be exponentially more important than the DLC.

Activision stands to sell a lot of DLC for COD because it's in a ridiculous number of people's hands. But if they didn't sell a single map pack (not possible) it wouldn't make much difference.

If EA is in a situation where they NEED Johnny to buy potential, or what ever the hell it is that they actually sell in that online DLC, just to pay the bills, then that is not a good position for them to be in (not saying that they are, this is just hypothetical). When the online extras are no longer extras, but actually essential to their bottom line, that's what I, as well as EA, would call a problem.

I think even a more logical post that mine(examining all possible revenue streams) is this post.

Looking at just the 360, Madden 10 sold 480,000 copies between week 27 and now. That is the point I was making. You guys are comparing 70+ weeks of Madden 10 sales to 27 weeks of Madden 11 and are dancing around arm in arm praising a 27% drop in sales.

That's not comparing apples to apples in sales, just trying to make something to fit into their equation.

[Only1LT]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

I think even a more logical post that mine(examining all possible revenue streams) is this post.

Looking at just the 360, Madden 10 sold 480,000 copies between week 27 and now. That is the point I was making. You guys are comparing 70+ weeks of Madden 10 sales to 27 weeks of Madden 11 and are dancing around arm in arm praising a 27% drop in sales.

That's not comparing apples to apples in sales, just trying to make something to fit into their equation.

I agree with this, which is why I said that I wasn't saying that the numbers actually are, or will even be, down when it's all said and done. If I had to take a guess though, I'd say that they will be down. To what extent, I have no idea.

It doesn't really matter though, because until the deal expires, or is revoked, we will still only have one game, regardless of how well or poorly it does. So looking at sales numbers is really an exercise in futility.

Thinking about the consumer is the absolute last thing on anyone's mind at the NFL or EA, so it's ironic how whether EA is or isn't profitable, is the first thing on a lot of consumer's minds.

[cree ross]

The new motto is " IT'S NOT FOOTBALL ,IT'S ONLY MADDEN"

[SageInfinite]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

I would really like to know how Madden would fair off of just the game alone. No NFL teams, no NFL players, just the gameplay and features. I wonder how good EA would feel releasing that game? Personally I think the other top sports games this gen would still be worth playing without their licenses. I'm not so sure about Madden. I haven't played the final version of Madden 11(patch work), so I honestly can't comment, but from what I played before, I don't think it would fair too well.

[mestevo]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

This is what I didn' have time to do yesterday.

Madden sales are basically flat on HD consoles, and decreased on mobile and Wii, with death of the PS2 and the continued poor performance by PSP platform accounting for a majority overall decline.

The far right 2 columns show sales of Madden 10 week 78 v M11 week 10, and YOY percentage. I am sure many of us would have expected it to be a much smaller number, I am not sure I was expecting the 360 and PS3 to sell 16-18% of their totals between weeks 27 and 78.

Madden 10 sold 1.8m copies between week 27 and now. Certainly can't expect that again due to the PS2/PSP, but the HD consoles were responsible for 780k, little reason to believe Madden 11 won't do similar numbers over the next year.

I am not sure there's much to be unhappy about here aside from probably the Wii numbers declining. This would be more interesting with multiple years probably (as if it isn't already riveting as it is! )

[Boilerbuzz]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

Sounds like it's a good moneymaker for both sides. Makes perfect business sense.

Where did you get that from? Do you realize that this started with EA asking for "relief" of the payouts due to the possible lockout. What's not being told is that the request for relief is NOT just related to the lockout. EA is NOT making the money you're implying. But, whatever.

[mestevo]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

Where did you get that from? Do you realize that this started with EA asking for "relief" of the payouts due to the possible lockout. What's not being told is that the request for relief is NOT just related to the lockout. EA is NOT making the money you're implying. But, whatever.

You're just asserting a different implication is all, there's little to prove either of you wrong, just different interpretations to deal... often meshed with our own personal biases and/or objectivity/subjectivity on the subject.

As much money as EA spends on marketing, the NFL's games themselves are probably the biggest driver behind Madden (and the ad spots to relevant eyeballs they provide).

That's why they asked for relief, IMO. No games makes it a more difficult ROI to achieve. I am sure their current deal was negotiated with certain market expectations, and one of them was surely 'NFL games are being played'.

[knighthawksfan]

Well I am 50/50 right now if I really want to buy madden 12 or not because I am not a huge nfl fan I am more of a college sports guy. So I might just buy ncaa football 12 and call it a day.

[knighthawksfan]

Well I am 50/50 right now if I really want to buy madden 12 or not because I am not a huge nfl fan I am more of a college sports guy. So I might just buy ncaa football 12 and call it a day.

[Boilerbuzz]

Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

You're just asserting a different implication is all, there's little to prove either of you wrong, just different interpretations to deal... often meshed with our own personal biases and/or objectivity/subjectivity on the subject.

As much money as EA spends on marketing, the NFL's games themselves are probably the biggest driver behind Madden (and the ad spots to relevant eyeballs they provide).

That's why they asked for relief, IMO. No games makes it a more difficult ROI to achieve. I am sure their current deal was negotiated with certain market expectations, and one of them was surely 'NFL games are being played'.

I don't disagree with what you're saying. I was just saying that the "relief" talks with the NFL and EA has been going on before any talk of the lockout. And that the perception that EA is financially benefiting greatly with the deal is off the mark. Not implying anything beyond that.

[boooey]

dam.. first Nokia sells out to Microsoft, and now this even worse bad news.. its been a really bad week.