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Madden NFL 11 News Post


Gamasutra has some new info on the lawsuit.

Quote:
"A U.S. district judge has certified a class-action anti-trust lawsuit against Electronic Arts that alleges the company illegally inflated prices for its football titles after attaining exclusive rights to league licenses.

In a 67-page complaint [PDF], the legal team specifically cites the 2004 pricing battle between Sega and Take-Two's NFL2K5, which retailed for just $19.95, and EA's Madden NFL 2005, which was lowered from a $49.95 asking price to $29.95 in November of that year.

A month after this price decrease, EA signed its exclusive licensing deal with the NFL, following with similar deals for the NCAA and Arena Football leagues in later months. The next year's Madden NFL 2006 faced no competition in the football game market at its usual $49.95 price point."

Gamespot chimes in as well.

Quote:
"We believe EA forced consumers to pay an artificial premium on Madden NFL video games" Berman continued. "We intend to prove that EA could inflate prices on their sports titles because these exclusive licenses restrained trade and competition for interactive sports software."

What do you think happens, out of all this?

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Member Comments
# 101 roadman @ 12/28/10 01:04 PM
Quote:
Originally Posted by LiquorLogic
Sorry, you're not seeing it the right way then. There is no such thing as "accepted" levels for pricing; demand and competition, when it actually exists, determines the price of a product. Here are the facts: EA lowered the price of Madden to $30 after 2k set their price ( for 2k5) to $20. After 2k was eliminated as a competitor, Madden went back up to $50; that's the problem, and it's also true that the EA approached the NFL about exclusive licensing several times before the NFL finally agreed. Had EA kept their price at $50 and simply acquired the exclusive license, this case wouldn't have any legs, but the problem is that they were selling Madden for $30 only until they got rid of the competition.

Whatever the outcome of this case may be, EA will probably just settle, it's good for us gamers. The NFL is already in another lawsuit with American Needle concerning the NFL's exclusive deal with Reebok. Why would they renew the deal and risk another lawsuit when the exclusive license hasn't increased sales to begin with ? Honestly, I don't know why the NFL renewed the license the first time; sales ( for Madden) have gone down each year after EA made the deal.
Your first paragraph, it still makes 2 parties to make a deal. Does it really matter who approached who? In the business world and court of law, no, but in the critical world of video football gamers, it sure does. Bottom line, it's all about business. It's very clear that the cost of the incense had a direct impact on the price increase of Madden.

In your next paragraph, why should the NFL care if Madden sales go up or down. They have their money upfront.

It's similar to the satellite deal. Why should the NFL care if DirectTV goes up or down in football subscriptions each year? They have their money.
 
# 102 Only1LT @ 12/28/10 02:37 PM
Quote:
Originally Posted by ODogg
spankdatazz22 - I agree that EA did what they wanted to do all along but as I've stated many times, the license was the NFL's and various other entities to sell. That's where any sort of legal challenge should be focused, if at all. But again even then it'd make no sense to do that because they own their own product and can sell it to one dev or 20 devs, there is no "monopoly" issue on them and how they manage it since it's a private copyright of a non-public item.

Again, this may change in the very near future.
 
# 103 Only1LT @ 12/28/10 02:43 PM
Quote:
Originally Posted by khaliib
I would defer your answer to any of the hundreds of roster/slider threads on various forums along with the thousands of team creations from backbreaker and the NCAA online editor.

Take a look at the usage of 3rd party apps like Finn's 2k/Backbreaker editors and Pocketscout's NCAA app for football alone.
The numbers are there that show the willingness/want for full customization.

I would also say that Finn's 2k editors had a role in encouraging what we see in NBA 2k11. Many are saying NBA 2k11 is the standard for future Sports games editing functions.

Also, I would take a look at Ian Cummings thread asking the community for their thought on the idea for future Madden releases.

They really don't have to go this route, but this case is bigger and goes far beyond video games.

The one, and most important, number that you left out is the number of copies that Backbreaker sold. 70k if I'm not mistaken. They made so little that they couldn't even afford to put out a patch to fix a horribly broken run game.

I love Backbreaker as a concept, and really enjoy, or should I say enjoyed it, until the running game was broken, but the proof is out there that the public, en masse, will not support a non licensed sports game.
 
# 104 ODogg @ 12/28/10 03:14 PM
Only1LT - you're not getting my point, there can never be a monopoly on a private copyrighted product such as the NFL brand. Anyone's entitled to make a football game but the NFL controls the brand. A monopoly is not ever applicable to a brand like the NFL due to the nature of it not being deemed a public goods or service used by the public sector (unlike say wood, gas, oxygen, gasoline, the radio or tv airwaves, etc).
 
# 105 ryan36 @ 12/28/10 04:55 PM
Quote:
Originally Posted by Only1LT
The one, and most important, number that you left out is the number of copies that Backbreaker sold. 70k if I'm not mistaken. They made so little that they couldn't even afford to put out a patch to fix a horribly broken run game.

I love Backbreaker as a concept, and really enjoy, or should I say enjoyed it, until the running game was broken, but the proof is out there that the public, en masse, will not support a non licensed sports game.
They put out a patch.
 
# 106 Only1LT @ 12/28/10 05:12 PM
Quote:
Originally Posted by ryan36
They put out a patch.

They did, and that patch broke the running game. They wanted to do another patch to fix what the last patch did, but couldn't because 505 Games dropped them faster than if Natural Motion changed their name to Glass Jaw lol.
 
# 107 Only1LT @ 12/28/10 05:18 PM
Quote:
Originally Posted by ODogg
Only1LT - you're not getting my point, there can never be a monopoly on a private copyrighted product such as the NFL brand. Anyone's entitled to make a football game but the NFL controls the brand. A monopoly is not ever applicable to a brand like the NFL due to the nature of it not being deemed a public goods or service used by the public sector (unlike say wood, gas, oxygen, gasoline, the radio or tv airwaves, etc).

The NFL, and other sports entities have been afforded anti-trust exemption status. That status could potentially be revoked in the sense that they may not be allowed to behave as one entity any longer. That is the crux of the American Needle case.

That's what I am referring to. While they are free to market their brand to whomever they choose, they may not be able to do so, unilaterally, for every team.

Now if the Supreme Court ruling is upheld, that doesn't mean that the NFL can't still do exclusive deals, if all the 32 teams collude to do so, but you made mention, in several posts, that the NFL is acting as one entity. I was just interjecting that this may not always be the case.
 
# 108 khaliib @ 12/28/10 05:29 PM
Only1,

My counter was to MoutonDocile's response that full customization is not enough for a game to sell well without the NFL (or College) package attached to it.

I was pointing out how a game with full customization does not need an NFL/NCAA package on top of it to sell, because gamers would utilize the open editor to create an NFL/College structure with it's necessary teams.

It's not that a football game can't be made with these Exclusive Contracts, it's the notion that a game would not sell well if it doesn't come pre-packaged with the brand.

Those other games failed, not because the NFL brand was not on it, but because of the gimmicky marketing attempts versus producing the best gameplay with generic presentation and open customization.

I reference that it is the Casual Gamer that needs/want the brand name attached to it, because the Hardcore gamer will edit/customize the game into what he wants anyway if given the options.

I've always wanted to see what a 2k College football game would look/play like on Next-Gen consoles.

2k8 Football, Backbreaker and Black College Football showed that it's not about another football game being put out on the market, so this case is much deeper than what we may perceive.
 
# 109 Gotmadskillzson @ 12/28/10 05:40 PM
I am amazed there is a thread about this and:

1. It is still open and not locked

2. Nobody has been banned in this thread

 
# 110 ryan36 @ 12/28/10 05:44 PM
Quote:
Originally Posted by Gotmadskillzson
I am amazed there is a thread about this and:

1. It is still open and not locked

2. Nobody has been banned in this thread

Good point. *starts back at page 1*
 
# 111 Only1LT @ 12/28/10 05:46 PM
Quote:
Originally Posted by khaliib
Only1,

My counter was to MoutonDocile's response that full customization is not enough for a game to sell well without the NFL (or College) package attached to it.

I was pointing out how a game with full customization does not need an NFL/NCAA package on top of it to sell, because gamers would utilize the open editor to create an NFL/College structure with it's necessary teams.

It's not that a football game can't be made with these Exclusive Contracts, it's the notion that a game would not sell well if it doesn't come pre-packaged with the brand.

Those other games failed, not because the NFL brand was not on it, but because of the gimmicky marketing attempts versus producing the best gameplay with generic presentation and open customization.

I reference that it is the Casual Gamer that needs/want the brand name attached to it, because the Hardcore gamer will edit/customize the game into what he wants anyway if given the options.

I've always wanted to see what a 2k College football game would look/play like on Next-Gen consoles.

2k8 Football, Backbreaker and Black College Football showed that it's not about another football game being put out on the market, so this case is much deeper than what we may perceive.

So your point is that if a game, that is unlicensed, was actually very well done, that it would sell. Ok. I'll buy that theory. Here is the problem though. At this point, it's just a theory. It has never been done before, so saying that it would sell is just a guess.

Here's what we do know. Every unlicensed sports game that has tried to take on the licensed ones, has failed. Miserably! APF 2K8, which many, myself included, consider the best playing Football game ever, only sold a few 100k copies. Backbreaker was an abject failure in the sales department (how they got the green light to make another sports game is beyond me, but I guess we'll see if this Hockey game ever comes out). I'm scared to even look up what Black College did lol (who?).

You say that casuals need the license, while the hard core don't. That may be true, but unfortunately for those that are interested in making an unlicensed game, there are TONS more casuals than there are hardcore gamers.

Now, I hear what you are saying. All of the unlicensed games that have come out, and subsequently, didn't do well in sales, had more knocks against them besides the fact that they were unlicensed. I can go with you a little on that one, but until somebody, anybody, creates an unlicensed Football game that is a commercial success, I'm going to have to go with conventional wisdom and say that unlicensed sports games, especially NFL ones, will not sell, because until it happens, the burden of proof is squarely on their side.

And forgive me for not being PC, but we live in a very... stoopid society. One where name brands are almost always thought of as being better, just because they are a name brand. To overcome this mentality is not very easy, and it should not be taken lightly.
 
# 112 ryan36 @ 12/28/10 05:50 PM
Quote:
Originally Posted by Only1LT
And forgive me for not being PC, but we live in a very... stoopid society. One where name brands are almost always thought of as being better, just because they are a name brand. To overcome this mentality is not very easy, and it should not be taken lightly.
I'm not stupid. I just want to play NFL/college football with real NFL/college teams.

So do most people, that's why they edit rosters. I'm not so free on my time, that I can do it all myself. I'll take a passable m11 over a perfect apf any day.
 
# 113 Only1LT @ 12/28/10 05:57 PM
Quote:
Originally Posted by ryan36
I'm not stupid. I just want to play NFL/college football with real NFL/college teams.

So do most people, that's why they edit rosters. I'm not so free on my time, that I can do it all myself. I'll take a passable m11 over a perfect apf any day.

Are you sure about that lol? Kidding.

All I mean is that the mentality, in general, not specific to Football games, of name brands being better just because they are name brands, is stupid, and that plays a factor in people's purchases, including Madden.

It could even be a licensed Football game, but it would still have a hard time competing with Madden, because of its brand recognition. Take away the license, and you can just about turn the lights out lol.
 
# 114 ODogg @ 12/28/10 05:59 PM
LiquorLogic - and just how is the deal "illegal"???
 
# 115 ODogg @ 12/28/10 07:16 PM
You are basing your entire logic on the decision of the American Needle case, a case in which even that court admitted the NFL could engage in some licensing as a single entity (***This is not a total loss for the NFL because the opinion says the League may engage in some activities as a single entity and disputes over those actions need to be judged on a case-by-case basis but "the activity at issue in this case is still concerted activity covered for [Sherman Antitrust Act] purposes.").

http://liveshots.blogs.foxnews.com/2...trust-dispute/

In the case of the NFL and EA it's mere semantics in regards to the agreement. It's seriously doubtful any team in the NFL would wish to be left out of the videogame and thus give up the marketing share. To bypass this aspect of the law EA and the NFL would only have to throw out the current agreement and put in place the same agreement as negotiated by all 32 teams individually instead of as a collective whole. That is if this particular agreement would even be found to be null and void which it has not, as of yet, been found to be..
 
# 116 ODogg @ 12/28/10 07:17 PM
Oh and just a note as well, the American Needle case applied specifically to that case and the NFL moving forward in how it does business. It did not strike down all in-place NFL contracts and agreements. That means that the current agreement is still legal and valid until a court says otherwise.
 
# 117 bwburke94 @ 12/28/10 11:01 PM
The real problem is GameStop, as always. The whole online pass mess was an attempt to stop GameStop from selling used copies. It didn't work.
 
# 118 ODogg @ 12/29/10 08:08 AM
LiquorLogic - I agree that it does mean its very slightly less likely that they will renew it (combined with the fact that the money the NFL would want to renew it is going to be off the charts), however it really doesn't add much work to renewing it if they really want, they simply have to go to the teams and ask them do they want to be in the videogame or not. I doubt any team is going to say no. Personally I hope they don't renew it.

P.S. - I still disagree with the whole "NFL and EA" conspired to eliminate competition. To conspire it takes more than one party and the NFL is allowed legally to sell its trademark to whoever it wants to market it, there is no conspiracy on there part to eliminate competition, they are the deciders of what to do with the brand.
 
# 119 ODogg @ 12/30/10 10:01 AM
LiquorLogic - the NFL is a shield under which all of the teams fall. This recent decision does not change that, it only mandates that the teams themselves must negotiate contracts like the EA one. It's really semantics going forward because the teams will still be splitting revenue equally per their internal agreements on contracts like the EA Madden one so it's not as if the Cowboys can ask for 11 million dollars to be in Madden whereas the Cardinals are only going to be able to get 8 million dollars to appear in the game. The only aspect to negotiating with the teams individually vs. doing so in regards to negotiating with the NFL will be to negotiate if a team does not wish to participate in the contract or if they do. And as I said before, what team owner is going to keep their team out of Madden or contracts like it? And of course there will be other contracts on individual team basis which will continue to operate the way they do now (i.e Dallas Cowboys signing contracts with Nike, whereas other teams go with Reeboks, etc).

Again, it may seem like a huge decision, the American Needle case, but it really is more about the methodology of the contract negotiation for the types of contracts that involve all of the teams, such as DirecTV Sunday Ticket and Madden than anything else. Those sorts of contracts will ALWAYS be based on evenly split revenue sharing so the only aspect of negotiating for the individual teams is going to be opting in or opting out and you will never see any teams opting out of those sorts of contracts. It's not really going to change the way the NFL does business and it's not going to create any different business practices for the most part IMO.
 
# 120 ODogg @ 12/30/10 04:37 PM
Yeah for something like team shirts, caps or something then as I said, stuff like that will continue to be more about the individual teams. But for contracts on a single entity sold in all markets, such as a DirecTV package or a Madden football game those will not change how they're locked up, other than the semantics of how the deal is done so as to comply by the most recent court decision as I explained in my last post.
 


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