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NBA Rejects EA Deal
PuppiesOnAcid writes "Although the NFL buckled under EA's mighty stronghold in the video game football market (Madden), the NBA has chosen to reject EA's exclusive rights deal. Jon Robinson explains, 'One of the reasons is that the NBA Live series simply doesn't have a stranglehold on the market the way Madden has for years, so by signing an exclusive deal with EA, the NBA would actually be losing money.'"
While Madden is the disputed leader of all NFL games, with this being the only year in a while where there actually was compition (ESPN Football), the truth of the matter is EA's NBA games are not that good. Plus, the NBA has a much greater numer of games that are NBA lisenced, such as NBA JAM, Ballers, Street(I know its EA, but still). I totally agree it doesnt make sense for the NBA to sign an exclusive deal with EA.
They should include bonus rinks and jerseys to reflect the exhibition games these guys are playing. Heck, you could even include Gary Bettman and Bob Goodenow as players so you can have them duke it out at center ice. It would be more entertaining than watching this total lack of negotiation that seems to be going on...
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The NFL themselves decided they wanted an exclusivity contract with a publisher. EA merely bid and won. What the hell do you expect them to do when an NFL branded game is one of their best selling titles? Sit on their asses and let someone else get the license so they can't make one of their best selling titles?
As for 'prices going up' - prices have come DOWN in years. Video game publishers only see a portion of that $50 - they get about $30. Lower prices and it's the brick and mortar stores who suffer. The ESPN sports titles at $20 were probably losing money, and most likely just a means to undercut the market and hurt the competition, and lure in consumers to a new brand that they could jack the price back up to $50. Your first couple hits are cheap... then when they've lured you away they start charging full price.
$50 has been the 'sweet spot' that will sell, consumers generally balk at $60 or higher.
EA also steadfastly denied making the Madden deal for months on end up until the press release actually came out.
Don't believe everything EA says.
Newsie, Moderator, www.tauniverse.com
That's how business works. Companies enter into agreements with other companies if they think it will make them more money. The decision to enter into a deal is made by numbers, not politics or ideals. Public opinion can be a factor, but ultimately the company will select the option that will be most profitable for them. There's no other way to run a business, if you want to stay in business.