Five Publishers Split NBA Deal

autojive writes "According to a Reuters story, 'The National Basketball Association on Tuesday signed long-term video game licensing deals with five publishers, bucking the recent trend of sports leagues making exclusive arrangements with a single company. Electronic Arts Inc., Take-Two Interactive Software Inc., Midway Games Inc., Sony Corp. and Atari Inc., all current NBA partners, signed new deals with the league.' I guess not playing favorites can get you deals worth a reported 500 million dollars total while hopefully keeping most players and publishers happy."

Comments

Re:Game Prices going down?

[Golgafrinchan]

According to economic theory, the price game companies charge for their games are independent of the costs. Once they've paid these costs, all the companies want to do is maximize revenue.

If they aren't constrained (i.e., they aren't forced to charge at least $X per game), they'll charge whatever price they think maximizes their revenue. That could be $19.95 (as in Sega's series) or $49.95 (as in EA's series before last year).

In other words, I don't think this deal will affect the price consumers would have paid without such a deal.