EA Still Owns the NFL License Exclusively

[Big FN Deal]

Quote: Originally Posted by JaymeeAwesome

I would have to say you wouldn't make a good business man. Shareholders and members of the board care about one thing...$$$$$. If they heard that you had an opportunity to wipe out the competition and increase your margins, and you told them "I'll just make a better product", you would be fired immediately. All your responses are consumer minded. Brand recognition and marketing are what's keeping EA profitable, and that's all the Execs want. Money. ...and as a side note, have you not seen what M15 looks like. For the third game, in a stated 3 year cycle, it has improved. As long as they don't rip and replace next year, the future looks a little brighter.

This seems to confuse a good business idea/principle, with actual good business and based on what we know about the reported direct cost of the exclusiveS, lawsuit settlements and sales numbers since, the argument could be made that the way EA handled the NFL exclusive wasn't good business.

You seem to be referring to eliminating the competition through an exclusive as good business, in the general since, whereas I think SageInfinite is specifically referring to the way EA handled the whole process. In that context, again it can be argued, that EA could have done things differently and potentially made more profit.

[roadman]

On the broader spectrum, EA as a company is selling at a 52 week high of 35.68 after being a low in that period of 20.47.

A $15 jump over a year is pretty darn good if you have shares in EA. A few years ago there was a point where it was in the low 20's.

http://bits.blogs.nytimes.com/2014/0...oofinance&_r=0

[hanzsomehanz]

http://en.m.wikipedia.org/wiki/Madden_NFL_2005

An exert fron the Reception article

Quote:

ESPN NFL 2K5 was the first in the 2K series priced at $19.99 the day it shipped, much lower than market leader Madden NFL at $49.99. This greatly reduced Madden sales that year; one EA Sports developer recalled that "[i]t scared the hell out of us".[11] EA reduced Madden NFL 2005's price to $29.95. In December 2004 EA Sports acquired an exclusive rights agreement with the NFL and NFLPA to be the sole creator of NFL video games.

EA approached the NFL out of fear and insecurity!

EA was doing less with more while 2K was doing more with less - the drop in retail prices hurt EA more because they could not afford to sell the game at this reduced cost for years to come, not with their marginal overhead costs.

2K was sly slashing their prices like they did and it showed some type of arrogance revealing that they could deliver a competitve (or better) product that cost them less in operating costs in contrast to EA's build.

2K could afford to sell their units so cheap: not the case w EA + EA was losing sales due to consumers being seduced by the marginal differene in costs yet similar product value that 2K offerre.

The price disparity was a marketing tactic 2K used to try and stomp EA and gain a competitive advantage.

Looking back, many seem to still agree that 2K afforded to do more w less compared to what Madden currently delivers and that claim alone leaves a black eye on video game football.

Had 2K sold their units on par w EA, who knows, maybe we end up in the same boat but board the ship at a later date in time opposed to December '04.


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[roadman]

Quote: Originally Posted by iamgramps

This was a hypothetical question posed which caused for a hypothetical response. If 2k could purchase the license, that would be his response. The key word is if. Why ridicule this man for speaking hypothetically?

Yeah, I think there might be a bit of an over reaction on Rex's part. Was he over dramatic? Yes, but so was the question, plus HHG gave him a WWE belt.

If HHG was interviewing me, and gave me a WWE belt, and asked, if your wife challenges you to an arm wrestle, how would you react?

My wife and I have joked around since the end of time.

I'd probably say the same as Rex, bring it, because I know I can beat her 10 out of 10 times.

Others may feel differently on the matter.

[roadman]

Quote: Originally Posted by hanzsomehanz

http://en.m.wikipedia.org/wiki/Madden_NFL_2005 An exert fron the Reception article EA approached the NFL out of fear and insecurity! EA was doing less with more while 2K was doing more with less - the drop in retail prices hurt EA more because they could not afford to sell the game at this reduced cost for years to come, not with their marginal overhead costs. 2K was sly slashing their prices like they did and it showed some type of arrogance revealing that they could deliver a competitve (or better) product that cost them less in operating costs in contrast to EA's build. 2K could afford to sell their units so cheap: not the case w EA + EA was losing sales due to consumers being seduced by the marginal differene in costs yet similar product value that 2K offerre. The price disparity was a marketing tactic 2K used to try and stomp EA and gain a competitive advantage. Looking back, many seem to still agree that 2K afforded to do more w less compared to what Madden currently delivers and that claim alone leaves a black eye on video game football. Had 2K sold their units on par w EA, who knows, maybe we end up in the same boat but board the ship at a later date in time opposed to December '04. Sent from my SGH-I727R using Tapatalk

And as a result of the price slashing, there were reports that the NFL didn't appreciate that.

[SageInfinite]

Quote: Originally Posted by roadman

Yeah, I think there might be a bit of an over reaction on Rex's part. Was he over dramatic? Yes, but so was the question, plus HHG gave him a WWE belt. If HHG was interviewing me, and give me a WWE belt, and asked, if your wife challenges you to an arm wrestle, how would you react? My wife and I have joked around since the end of time. I'd probably say the same as Rex, bring it, because I know I can beat her 10 out of 10 times. Others may feel differently on the matter.

At least your wife has an arm to wrestle you with, lol.

[roadman]

Quote: Originally Posted by SageInfinite

At least your wife has an arm to wrestle you with, lol.

Darn near spilled my coffee on that one.

(if she's not looking over shoulder, still take her 10/10 with both eyes closed)

Bring it. lol

Anyway, just didn't think that was that much of a big deal, deal or no deal. lol (oh, my, more coffee needed)

[JaymeeAwesome]

Quote: Originally Posted by roadman

And as a result of the price slashing, there were reports that the NFL didn't appreciate that.

I agree. I think the NFL saw that 2k was lowering the NFL brand and it made them realize that they needed exclusivity to make sure their brand was sold at a premium cost. EA probably saw the same thing and approached them. I now blame 2K for why we have no competition in football gaming. I can now see that when the NFL opens it up again, 2k may be denied license rights.