Madden NFL 11 News Post

Madden's Current Gen Has Not Been a Success

12:21 PM - February 7, 2011 by RaychelSnr

To say that the Madden series has been a success this console generation would be an overstatement of the decade.

Think back to the year 2004, a year that could be summed up as nothing short of a football gaming utopia. NFL 2K5 aside, EA's Madden 2005 set the bar for all successive iterations in the series. The game was the perfect blend of polished gameplay, solid presentation, and new and innovative features like defensive playmaker controls. Madden 05 had football gamers glued to their consoles for months to come.

Fast forward to 2006 when the now infamous Madden "next-gen" trailer was released, and the hype surrounding Madden's move to the Xbox 360 and PS3 was at a fever pitch.

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# 81 SpeedyMikeWallace @ 03/05/11 02:21 AM

Quote:

Originally Posted by LiquorLogic


	They(EA) paid the NFL nine figures in cash during this whole exclusive fiasco. You also have to account for development, marketing, and distribution costs. EA isn't making 59.99 off of every copy of Madden that they sell.

I already had a post covering how their expenses are negligible in the face of that amount of money.

Even if the game required...:

- $30 million in development costs
- $1 million for cover art and cases
- $10 million in advertisements
- 15% to retailers
(all of which are probably astronomically high)

...EA would still bank well over $200 million. They are making A LOT of money.

# 82 Exonerated @ 03/05/11 08:31 AM

Quote:

Originally Posted by SpeedyMikeWallace


	I already had a post covering how their expenses are negligible in the face of that amount of money. Even if the game required...: - $30 million in development costs - $1 million for cover art and cases - $10 million in advertisements - 15% to retailers (all of which are probably astronomically high) ...EA would still bank well over $200 million. They are making A LOT of money.

yeh. because 200 million is a lot for a 6.28 billion dollar company...

# 83 roadman @ 03/05/11 09:08 AM

Quote:

Originally Posted by SpeedyMikeWallace


	I already had a post covering how their expenses are negligible in the face of that amount of money. Even if the game required...: - $30 million in development costs - $1 million for cover art and cases - $10 million in advertisements - 15% to retailers (all of which are probably astronomically high) ...EA would still bank well over $200 million. They are making A LOT of money.

Minus exclusive liscense fee brings it into the red.

# 84 SpeedyMikeWallace @ 03/05/11 11:09 AM

Quote:

Originally Posted by roadman


	Minus exclusive liscense fee brings it into the red.

The exclusive license fee is $300 million over 5 years. They don't pay that amount for each game. So, if they're paying $60 million for each game in licenses, they're still bringing in $150 million A YEAR, that's about $750 million they've made on the deal.

# 85 SpeedyMikeWallace @ 03/05/11 11:13 AM

Quote:

Originally Posted by Exonerated


	yeh. because 200 million is a lot for a 6.28 billion dollar company...

I assure you, if EA were to lose $200 million, they'd be upset about it.

# 86 SteelaNati0n @ 03/05/11 11:25 AM

I still have a question, why does EVERYONE on the internet (forums mostly) hate on this game? I understand they dont make alot of upgrades year to year but I mean its still a great game.

# 87 SpeedyMikeWallace @ 03/05/11 11:34 AM

Because they make you pay full price for a game that probably has $20 worth of upgrades from the previous version. Honestly, the amount of changes between one game and the next could be contained in a $20 DLC.

# 88 roadman @ 03/05/11 12:09 PM

Also, you a bit low on the retailer end.

I've read where EA makes between $30-$40 on the retail end.

So, now you are down to less than 100 million in revenue.

Big difference from your original $300 million.

# 89 turftickler @ 03/05/11 12:11 PM

Quote:

Originally Posted by Eski33


	Nice blog but this whole topic has been beaten to death. You didn't mention anything new that has not been said or written in the past five years. From my standpoint and a longtime gamer (have played every rendition of Madden since its Apple II days) Madden isn't a failure. To gamers, yes, the game has not lived up to a certain level of expectation especially on consoles that are to have more power. From an economic standpoint, people are still buying Madden. If Madden is so bad, how is it making so much money? Simple -- There are people out there who find the game fun. I am on the fence. When the 360 / PS3 era came about, my expectations mirrored everyone else's. I couldn't wait to see what EA would do with more graphical power and with consoles having HDD as a norm, EA was sure to break out all the stops. Instead, what we got was a stripped down game that didn't have nearly the features the PS2 / XBox versions had. Since that time, the Madden series improved little by little each year. Madden 09 and 10 were great games with Madden 10 taking visual leaps over its predecessor. The problem with Madden is that there are people want it to fail that they spend every waking moment looking for bugs, glitches, issues, etc. and blogging, writing in forums and recording videos that go straight to YouTube for all to see. I understand why people do this. They want competition back which is a great thing. In looking at what the NCAA 11 team did, this has to push the ante for the Madden team because NCAA 11, although not perfect, is one of the best console football games to date. It is visually pleasing as well as the online dynasty has to be one of the best multi-player features ever (outside of BAP in NHL). To compare Madden to a game like Backbreaker is almost criminal. First, to say a developer with fewer resources created a revolutionary physics engine is a tad slanted. Keep in mind that the developer of Back Breaker developed the physics engine first THEN creaeted a football game as a way to show it off. They aren't a football game developer who created a great physics engine. Also, your blog makes it seem as if they created this physics engine in one development cycle which isn't the case. NatualMotion was working on that physics engine for years and it took almost as long to release BackBreaker. I have no issues with the physics engine that is currently utilized in Madden and NCAA. Only those that cannot get past the simple fact that these are games and they will never fully emulate reality will continue to be "unhappy" with the state of Madden and other games.

I'm sorry, but did your read your post?

Madden NFL games have gotten worse since Madden 08. The only reason Madden 08 was just an okay football game was because, EA Sports saw that 2k Sports was back on the scene in 07. I can guarantee you all that if 2k Sports were to come out and say that their football game development team is up and running, EA Sports and company would be running around like chickens with their heads cut off.

EA Sports sees 2k Sports as a threat to their success (whatever you want to call it). Therefore, when the see 2k making moves, they get the best material out again. Notice how ESPN NFL 2k4 made a statement in 03, then EA Sports stepped up their game with Madden 04. The same thing happened with ESPN NFL 2k5, EA stepped it up once again with Madden NFL 05. Are we seeing the whole picture here, now?

NaturalMotion comes starts developing BackBreaker, EA stepped things up with with Madden 10. Backbreaker is released in 2010, then Madden NFL 11 was a better game for that reason.

By the pattern we have seen with EA Sports and their Madden NFL series, truly competition breeds a better product. If we don't believe by now that EA Sports will only string us along every year until some viable competition shows up, they will continue to give us stuff like, I don't know, the "Trick Onsides Kick".

As far as Pro-Tak, it's just pro-wack. It's just another allusion, but once you see the replays, you can clearly saw all of the flaws in those games.

Sure, these are just video games and they are not meant to replace real sports. This is about replace real sports. It's about giving the NFL video game fan base what they are asking for. If they can't do that, then they need to do the honorable thing and step down so 2k Sports and NaturalMotion can take a crack at NFL simulation games. Then EA Sports can continue their path to the greatest arcade sports games of all time.

# 90 SpeedyMikeWallace @ 03/05/11 12:34 PM

Quote:

Originally Posted by roadman


	Also, you a bit low on the retailer end. I've read where EA makes between $30-$40 on the retail end. So, now you are down to less than 100 million in revenue. Big difference from your original $300 million.

They're still netting over $100 million (the game doesn't cost $30 million to make nor do they spend $10 million advertising it) annually. No matter how you try your damnedest to whittle it down, EA is making a lot of money. There are studios that never even touch that kind of money.

# 91 roadman @ 03/05/11 12:59 PM

Quote:

Originally Posted by SpeedyMikeWallace


	They're still netting over $100 million (the game doesn't cost $30 million to make nor do they spend $10 million advertising it) annually. No matter how you try your damnedest to whittle it down, EA is making a lot of money. There are studios that never even touch that kind of money.

If you say so.

What's you point? I'm trying to whittle it down and you are getting upset. You are trying to whittle it up and it's not bothering me at all.

We each have our different opinions, time to move on and out.

# 92 SpeedyMikeWallace @ 03/05/11 01:18 PM

Quote:

Originally Posted by roadman


	If you say so. What's you point? I'm trying to whittle it down and you are getting upset. You are trying to whittle it up and it's not bothering me at all. We each have our different opinions, time to move on and out.

My point is that the game makes a lot of money, which it does.

I'm not getting upset, at all. I'm just trying to show you that the game makes EA a lot of money, even with all of the costs.

Facts are not a matter of opinion. It either is or it isn't. EA is making a lot of money off of Madden.

# 93 kjcheezhead @ 03/05/11 01:50 PM

Quote:

Originally Posted by SpeedyMikeWallace


	They're still netting over $100 million (the game doesn't cost $30 million to make nor do they spend $10 million advertising it) annually. No matter how you try your damnedest to whittle it down, EA is making a lot of money. There are studios that never even touch that kind of money.

All of your numbers are based on actual sales. Your leaving out dlc like Madden moments, MUT cards, online franchise, elite status, afl packs, franchise boosts, not to mention advertising revenue from old spice, doritos, snickers, subway and they also get revenue from the facebook app.

All this money is collected annually off a game that requires much less in development since they are simply building off a core game designed 6 years ago and not starting from scratch.

# 94 roadman @ 03/05/11 01:58 PM

Quote:

Originally Posted by SpeedyMikeWallace


	My point is that the game makes a lot of money, which it does. I'm not getting upset, at all. I'm just trying to show you that the game makes EA a lot of money, even with all of the costs. Facts are not a matter of opinion. It either is or it isn't. EA is making a lot of money off of Madden.

When you initially tried the $60.00 X 5 million, that is when I piped in and mentioned you are forgetting cost.

Also, KJ is correct, there is much more revenue streaming in from MUT, in game advtsg, etc.....

My whole point to you was to illustrate to you was not to forget costs, which it appears you did in your initial post.

Anyway, FIFA is more of a cash cow than Madden is.

And if Madden was doing so well money making wise, EA's stock would be much higher.

# 95 SpeedyMikeWallace @ 03/05/11 02:22 PM

Quote:

Originally Posted by roadman


	When you initially tried the $60.00 X 5 million, that is when I piped in and mentioned you are forgetting cost.

I don't recall ever saying that EA takes in 100% of 59.99 x 5 million. I said, with that kind of money, there's pretty much 0 chance EA isn't making A LOT of money.

Quote:

Originally Posted by roadman


	Also, KJ is correct, there is much more revenue streaming in from MUT, in game advtsg, etc.....

Which further proves that EA is making a lot of money off of the game.

Quote:

Originally Posted by roadman


	My whole point to you was to illustrate to you was not to forget costs, which it appears you did in your initial post.

I never forgot costs. I just never believed that they were so large that the game wasn't turning a profit.

Quote:

Originally Posted by roadman


	Anyway, FIFA is more of a cash cow than Madden is. And if Madden was doing so well money making wise, EA's stock would be much higher.

Why would Madden's sales lead to greater stock performance by EA when it isn't even the biggest title it's own division: EA Sports? You're not taking into account how many games EA makes or that not all of the games they make are successful. The successful games allow EA to not go bankrupt when a game fails.

And, if I remember correctly, EA's stock took a nice jump after they signed the deal with the NFL.

# 96 roadman @ 03/05/11 04:20 PM

Quote:

Originally Posted by SpeedyMikeWallace


	I don't recall ever saying that EA takes in 100% of 59.99 x 5 million. I said, with that kind of money, there's pretty much 0 chance EA isn't making A LOT of money. Which further proves that EA is making a lot of money off of the game. I never forgot costs. I just never believed that they were so large that the game wasn't turning a profit. Why would Madden's sales lead to greater stock performance by EA when it isn't even the biggest title it's own division: EA Sports? You're not taking into account how many games EA makes or that not all of the games they make are successful. The successful games allow EA to not go bankrupt when a game fails. And, if I remember correctly, EA's stock took a nice jump after they signed the deal with the NFL.

The last thing I will say on this is that we are both speculating on how much profit EA makes. What is a good profit margin for them?

We aren't privy to their financial books, so, it's just only a matter of opinion.

I will say they are probably making a profit, but how much of a profit, we don't know.

# 97 turftickler @ 03/05/11 04:26 PM

The problem with Madden NFL games people start to believe that everything they see in those games is realistic because of all the NFL stuff. They have been blinded by the fluff and stuff. All the glitter and glamour of the NFL has made them lose site of what simulation should be.

# 98 Exonerated @ 03/06/11 07:04 AM

Quote:

Originally Posted by roadman


	The last thing I will say on this is that we are both speculating on how much profit EA makes. What is a good profit margin for them? We aren't privy to their financial books, so, it's just only a matter of opinion. I will say they are probably making a profit, but how much of a profit, we don't know.

EA is a publicly traded company. You can see all their books on Google Finance.

Search ERTS

# 99 roadman @ 03/06/11 08:42 AM

Quote:

Originally Posted by Exonerated


	EA is a publicly traded company. You can see all their books on Google Finance. Search ERTS

I should have meant Madden specifically. We don't have the balance sheets, income statements and accounting books of Madden.

I did see a lot of red though, for EA.

# 100 algeron04 @ 03/09/11 11:28 PM

Quote:

Originally Posted by unfriendlyghst


	Spot on analysis. I for one was overseas when the trailer and subsequent madden 06 game were released . Needless to say its 2011 and I am still not impressed.

I was overseas too when the I first saw the trailor for Madden 06 on PS3 was so excited the whole day. I bought the game and a PS3 the same day opened the box put in the disc and started to play. That was the biggest gaming shock ever. I was so disappointed that I continued to use my PS2 until 2008, but even now the game is still a dissappointment. Until NFL sports gaming competition is back Madden will never be as good as we all hoped.

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