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ESPN And Electronic Arts Sign 15-Year Deal
acxr is wasted writes "Electronic Arts has dealt another blow to rival Sega by signing a 15-year agreement with ESPN, giving the publisher exclusive video game rights to ESPN branded material. EA has recently faced pressure from popular ESPN-branded Sega titles released at discount prices, prompting their recent deal with the NFL, and failed bid for the NBA."
sports fans usually have favorite players and teams, and love the fact that they are able to play as their own specific team/player. the espn games aren't simply branded as ESPN. they have the look and feel of ESPN telecasts as well as ESPN announcers and commentators. this just adds to the overall experience of the game which is supposed to be a recreation of the NBA or NHL or whatever. the fantasy league game would be utterly boring.
What is dangerous is that EA is definitely trying to consolidate the industry. They are doing sports games right now, but how long till they start moving in on your company of choice? They already made an initial attempt at Ubisoft, and they are buying licenses from Nintendo. Who is going to be next on the list?
If EA gets enough control over the gaming industry, even if you never play their games they'll still be able to have an impact. How about, for example, increasing the price on their games to $60 a pop? If EA has enough marketshare in the industry, you don't think every other publisher wouldn't follow suit?
That's just one example. EA is out to win big. Check out this article here:
http://news.bbc.co.uk/1/hi/technology/4180453.stm
EA's stated long term goal is to become the largest Entertainment Firm in the world. They want to take on the big names in the movie industry via games. They cite Disney as one of their targets to beat in future years.
EA isn't going to stop this, it is just going to keep getting worse until they are either:
A) Forced to stop B) The well dries up on them and they die from bloat.
Either way, this is bad for the consumer. This is most definitely *not* a healthy monolopy they are trying to form.
You are who you are, let no one tell you different. But, never close your mind to a new point of view.
It matters. The reason why EA did this is because last year ESPN came out with a pretty damned good football game and priced it at $19.99. EA priced theirs at $49.99, figuring that their brand recognition would allow them to charge double. They were wrong. EA had to drop their price, and evidently didn't like it because they got pissed enough to shell out for an exclusive license.
Result is they have a monopoly on NFL-licensed games for a long time. For sports fans - clearly not you, but there is some gamer/sports overlap - this sucks because we only have one choice, and it's guaranteed to be overpriced.
More than likely, no other significant NFL games will be made. Even creative games like NFL blitz etc typically need licenses to survive.
RPGs are the most important thing on any console anyway.
You are kidding right? Console sales of RPGs are almost negligible.
-Looking for a job as a materials chemist or multivariat
Don't blame EA for this. They are looking after their own interestes (as any company should do in a matter like this). Blame ESPN and the NFL for agreeing to these deals.
I browse on +1 so AC's need not respond, I won't see it.
The industry could radically change in fifteen years. EA could shoot itself in the foot in five years, becoming an also-ran. Fifteen years in the video game industry is like 45 years in the world of broadcasting.
It might be three years from now, or five, or 10 years from now, but ESPN will live to regret this deal.
Read the EFF's Fair Use FAQ
I don't think EA actually bought the ESPN license for the "X Games" this time. I think the real reason they bough the ESPN license is because they haven't secured exclusive deals the the NBA and NHL. So if you can't prevent your competition from making games, steal their license and name. Sega was releasing ESPN hockey, football, and basketball games that were easily 3 times better than EA game for half the price (at release.) EA knows their business model can't come up with a game to match their quality and matching the price would defeat the whole purpose of their business model (sacrifice quality and your employees welfare for highest possible profits.) Thus they steal Sega's license.
Well now that EA has essentially bought up everything that a competitor like Sega might want to use to brand their football games, I wonder if Madden 2006 will be the last game with the Madden branding. Madden himself is getting old and given the way EA puts out a new football game every year, perhaps less relevant. Soon many of the fans playing the game won't even know who Madden is, many probably don't now. So the Madden name itself may not be worth as much as it used to be. Another question I would have is just how much longer does the current deal to use Madden's name last? If that deal expires soon, then what many of us know as Madden may eventually be known as EA ESPN NFL Football 2007.
So maybe EA isn't an evil monopolist after all, they're just planning for the future!
To the making of books there is no end, so let's get started
EA would take a MASSIVE hit if customers began to EXPECT to only pay $19.99 for each year's incremental update to the prior year's sports games. It would not only hurt them in the games where Sega provides direct competition (NFL, NBA, NHL, etc), it would force them to shift the price of their unopposed games. Why would gamers pay $50 for Tiger Woods or NASCAR after paying just $20 for Madden?
Rest assured, somewhere in the upper levels of EA, the bosses are paying a premium for these deals because they're factoring in the extra cash they'll make once Sega is crushed. The NFL was the opening salvo, the failed NBA bid an attempted backbreaker (especially since Sega's NBA game has been generally better in recent years). The Arena Football League deal attempts to seal off Sega's escape route (Sega could have design an AFL game to keep their football engine primed for the expiration of the NFL deal). But this is the heavy artillery. While Sega had begun establishing itself as a credible creator of sports games, the added ESPN name gave immediate credibility to the series in the eyes of consumers. Sega is some company that made a console they used to play Sonic on, ESPN almost defines sports to many Americans. Taking ESPN out of their hands puts them back to trying to build the Sega Sports name, but without a licensed NFL game as their flagship. EA is out for blood.
Seen any BadMarketing lately?