EA makes more friends. Sega Loses ESPN

Ec0n Major
Donator V2.0
Ulairi's picture

ESPN brand and programming to surface in EA sports titles on all platforms; deal is second blow to Sega Sports and Visual Concepts.
Electronic Arts broke the calm of a national holiday today by announcing a licensing deal of epic proportions. For the next fifteen years, EA will be the sole licensee of the ESPN brand in the area of sports games, which will include console, handheld, PC, and wireless games.

Games with leverage the ESPN brand will make their way to retail sometime during calendar year 2006, "upon the conclusion of ESPN's existing video game licensing commitments."

The news is the second blow to current license-holder Sega (and its Visual Concepts development studio). It recently lost the right to publish sports games using the NFL license when EA scooped that license up. Now, it loses the right to the ESPN brand as well.

In a statement released just minutes ago, the world's largest game publisher said, "The relationship will include established EA SPORTS franchises--which will be enhanced by ESPN telecast, print and online content--as well as new sports games to be published by EA based on ESPN media properties."

The agreement is for fifteen years "with an option to terminate after ten years under certain conditions," the statement said. The agreement gives the publisher "exclusive first rights" to all ESPN content for simulation sports games.

By Curt Feldman -- GameSpot

For instance, there are 108 beads in a Catholic rosary and there are 108 stitches in a baseball. When I learned that, I gave Jesus a chance. ~Ron Shelton, Bull Durham, 1988

Wiener Bombardier
Donator V4.0
Podunk's picture
Location: The People's Republic of Goodge

Wow. Those guys are absolutely ruthless.

Xbox Live: CrankyBaby

baggachipz: Who cares about Japan, let them have their silly pointless dog games and countless re-hashes of anime-based dragon princess super lucky crapitty crap.

In the Loop
Donator
belt's picture
Location: Taxachusetts

Holy Crap.


GWJ Recruiter
Donator V3.0
Flux's picture
Location: Dirty South

Quote:

To crush your enemies, see them driven before you, and to hear the lamentation of the women!

Xbox Live: Kooter06

The Dark Knight
Prederick's picture
Location: [Start of line][dramatic pause][puts on sunglasses][end line] YEAHHHH!

Yeah, I was thinking about this earlier last week. Lee Corso and Kirk Herbstreit, both on ESPN''s payroll are doing the play-by-play in NCAA 2005. ESPN even has a show called EA SPORTS NFL Matchup.

I always thought EA would end up with the ESPN license, although not neccessarily in this manner. So, to repeat the already stated, **** EA.

Quote:

Some might choose to pray, some might choose to snooze
But the style that I use is the style that's mine

XBL Tag: Prederick

Handheld Ho
Donator V2.0
Swat's picture
Location: Vancouver

Groovy, I think Sega should start to tap into lesser known sports such as curling.

Rifle Lovin Whore
Donator
Mayfield's picture
Location: Running around in circles trying to get a nut

Great Disney AND EA in bed together.. can anyone think of a more evil alliance??

Playing WoW as: Vilius (70 NE Druid)

“The only function of economic forecasting is to make astrology look respectable.” John K Galbraith

Ec0n Major
Donator V2.0
Ulairi's picture

"Swat wrote:
Groovy, I think Sega should start to tap into lesser known sports such as curling.

Curling is that game that old people play on cruise ships?

For instance, there are 108 beads in a Catholic rosary and there are 108 stitches in a baseball. When I learned that, I gave Jesus a chance. ~Ron Shelton, Bull Durham, 1988

Main Gauche
Donator V6.0
Robear's picture

No. Curling is a very cool game played on ice, with rules and action similar to Bocce. Bocce on ice - what''s not to like?

"Sometimes I go around saying, 'Kommisar Paulson has seized the commanding heights of the economy!'" - Paul Krugman, asked if recent changes to banking are socialistic.

There can be only one
Highlander's picture
Location: The Highlands

Jesus H. Tap-dancing Christ.

Only one company making sports games. Wow. It''s all about coporate money now.

Fans? What are fans? They don''t do anything but complain.

Cabbot Patch Kid
Donator V4.0
Thin_J's picture
Location: Riding my invisible bike.

I ordered NFL2k5 from gamefly the other day for 12.99 or somesuch price. For 15 bucks after shipping and tax (I hate tax!) I suppose I have the only football game I''ll need for the next few years.

XBLive: Thin J
PSN: Thin_J
I don't imagine master craftsmen leaping away from completed projects and shouting "Done, motherf*ckers! - 1Dgaf

Maximus Nofunicus
Donator V5.0
Grumpicus's picture
Location: Piedra Redonda, Tejas

Now EA just needs to drop Tiburon and acquire Visual Concepts to develop Madden and the world will be right again. Man, the wailing and gnashing of teeth over at the espnvideogames.com forum must be deafening.

(In case it''s not clear, I lament the pending death of the 2k* franchise.)

Edit: Well I went to check things out on the boards and someone suggested that VC/Sega could try to get the Fox Sports license. That may not be a bad idea....

There can be only one
Highlander's picture
Location: The Highlands

So let''s recap:
* $300 million for the NFL Rights
* $____ million for ESPN rights
equals= how much spent on game development?

They only thing they can do now is hire visual concepts and and this point, I would not be surprised.

Ec0n Major
Donator V2.0
Ulairi's picture

"Highlander wrote:
So let''s recap:
* $300 million for the NFL Rights
* $____ million for ESPN rights
equals= how much spent on game development?

They only thing they can do now is hire visual concepts and and this point, I would not be surprised.

They have a good sports development stuido. The Madden games pull in a ton of cash.

For instance, there are 108 beads in a Catholic rosary and there are 108 stitches in a baseball. When I learned that, I gave Jesus a chance. ~Ron Shelton, Bull Durham, 1988

There can be only one
Highlander's picture
Location: The Highlands

"Ulairi wrote:
They have a good sports development stuido. The Madden games pull in a ton of cash.

Some people like EA. I am aware of this. But if a company is going to spend this much money just for licensing -- then my question is how much are they going to put into developing the game?

EA is driven by public relations (which is really what drives successful companies). I don''t think (and this is my opnion) that they have any reason to make a ground-breaking game. They have their PR house all tidy now, people will just buy an EA game. Now I am not saying that Take Two actually cared about the gamer (which is what a lot of the people on the ESPN Boards like to say) Take Two wanted money, just like EA. They lowered their price to grabbed market share and then they, in all likelihood, would do what is about to come from EA: spend as little money as possible to make a game that as many people as possible will buy in order to make as much profit as possible. And that is business. But competition forces the companies to improve.

It is this fact that competition is no longer going to be driving development that is annoying. And this doesn''t apply to just games. We seem to be slowly working our one toward one corporation for America. There aren''t really more than five that really control it now:

Disney
Time Warner
Microsoft
NewsCorp
Wal-Mart

We keep this up and we will have one company controlling everything including media. Hell two of the ones I listed control most the media people get their news from now.

No competition is bad for consumers. In all aspects of life.

EDITS: Expect a ton of them cause I wrote too fast and didn''t bother to go back and re-read it.

Fists of Furry
Donator V3.0
mateo's picture
Location: Ticket to the edge. Nowhere To Hide. Lets go For the Joyride.

"Highlander wrote:
So let''s recap:
* $300 million for the NFL Rights
* $____ million for ESPN rights
equals= how much spent on game development?

They only thing they can do now is hire visual concepts and and this point, I would not be surprised.

You play any EA games lately? I''d say they don''t spend anything on development in the first place.

Blog: GameFinance
Twitter: justinmwhitaker

There can be only one
Highlander's picture
Location: The Highlands

"mateo wrote:
You play any EA games lately? I''d say they don''t spend anything on development in the first place.

That was my point. I don''t think they are going to work too hard on next year''s version, especially with next gen consoles looming.

None Shall Pass!
Donator
Paladin's picture
Location: Sacramento, CA

Says EA to Sega:

All that and a
Donator V6.0
baggachipz's picture
Location: do() || !do(); $try=NULL;

Says EA to integrity and all gamers: :hump:

--edit--
So, let me get this straight... EA dumps Madden, rebrands the Madden engine-based game as ESPN football? So, all the people who picked up ESPN 2k5 for 20 bucks this year and liked it are going to be fooled into buying a completely different game. The Madden faithful will buy anything EA puts out, Madden or not. This is vile. Here''s even more hoping for SEGA NFL 2k6''s ''user-created'' rosters, players, and stadiums... if you get my drift. That, or I''ll be playing 2k5 for the next fifteen years. This is like some sort of gaming nightmare.

I generated a virtual world in the toilet bowl this morning.
-- Podunk on the PS3's mystical, magical abilities

Here to save you all
Donator V6.0
TheGameguru's picture
Location: Cinemaction!

Game

Set

Match.

Aint nothing new about the world order..it's been playing since the day they put George Washington on a quarter

85's face the truth you're too dumb.

http://www.myspace.com/armyofthepharaohs

Avant-garde Grognard
Donator V4.0
SwampYankee's picture
Location: Drinking Wine, Eating Cheese, Catching Some Rays

""''Tis not a game company. ''Tis a remorseless eating machine.""

Metaphorically Speaking
Logan's picture
Location: Hollywood, California

Guess I''m playing real football from here on out.

Y''all meet me in the backyard. Bring your pads.

"Time traveling terrorists are no laughing matter, Malor." - *Legion* quote #30201

XBox Live: Novopain

Europeon
Spunior's picture

Quote:
So, let me get this straight... EA dumps Madden, rebrands the Madden engine-based game as ESPN football?

I doubt that will happen. The Madden brand is far too established. For many people it''s synonymous with videogame football. Even if EA''s game will be the only title available this year, I don''t think they''d take the risk and completely remove ""Madden"" from the title.

Maximus Nofunicus
Donator V5.0
Grumpicus's picture
Location: Piedra Redonda, Tejas

"baggachipz wrote:
So, let me get this straight... EA dumps Madden, rebrands the Madden engine-based game as ESPN football?

I''m sure EA and Disney (which owns both ABC - where Madden is on MNF - and ESPN) will figure out a way to make the two co-exist. Of course, that may soon reflect reality since it has been rumored that MNF (and possibly Madden) may end up on ESPN:

Quote:
So changes are in the offing. Could Monday Night Football, a fixture on ABC since 1970, end up on ESPN? ABC is losing millions of dollars on the production, and a switch to ESPN with a smaller audience but the ability to charge subscribers and advertisers to fund the program could happen. The NFL could sell an over-the-air Sunday night series to a broadcast network.
Although the NFL recently signed extensions with FOX and CBS, the league still is in talks for the prime-time packages. The exclusive negotiating period for ABC/ESPN extends for nearly another year. That second link also lists some of the other possible changes in your NFL-watching schedule.

Certis is Awesome
optimistic's picture
Location: Memphis, TN

This freaking sucks, I really can''t imagine how EA can say with a straight face how there will still be competition. This is just part of their plan to eliminate every other football game for the next 5 years. They got their ass handed to them by Sega for selling the game at $20 so this is how they get their revenge. Frackin evil scumf****.

Rifle Lovin Whore
Donator
Mayfield's picture
Location: Running around in circles trying to get a nut

Ten bucks says ESPN''s name will be all over this and Madden gets a smaller type?

Playing WoW as: Vilius (70 NE Druid)

“The only function of economic forecasting is to make astrology look respectable.” John K Galbraith

The Dark Knight
Prederick's picture
Location: [Start of line][dramatic pause][puts on sunglasses][end line] YEAHHHH!

It''s horrifying, but it could work. Just follow the trail. ESPN is part of Disney. Disney owns ABC. ABC puts on ""Monday Night Football"". Al Michaels and one John Earl Madden do the play-by-play and color commentary, respectively.

If EA gets ABC in on the deal, they could basically end up bringing you the Sunday Night Football game, and the Monday Night Game. And, knowing EA, they''ll be trying to get FOX or CBS to hop in too (back when Madden was on FOX, I have a distinct rememberance of one of the Madden games, can''t remember which year, using FOX''s NFL theme and so on) and do all that crap.

Quote:

Some might choose to pray, some might choose to snooze
But the style that I use is the style that's mine

XBL Tag: Prederick

... is people!
Donator V5.0
Mr.Green's picture
Location: French Canada

There is an EA office in Montreal...

Can I get C4 off Ebay?

Xbox Live: MrGreen
PSN: MrGreenPSN
Wii: 4859 2... oh f*ck it.

El Pollo Diablo
Donator V3.0
Location: Standing over a stained copy of an old Ronald McDonald ad, masturbating furiously screaming MY WAY!

So, EA Presents EA Sports''s ESPN''s John Madden''s Football 2k6?

Damn. Hey, remember when we all thought Sega was better off doing software only? Yeah, we were f*cking dumb.

The man wears a bucket of KFC on his head. I wouldn't expect anything less. - Pred

Ec0n Major
Donator V2.0
Ulairi's picture

"Mex wrote:
So, EA Presents EA Sports''s ESPN''s John Madden''s Football 2k6?

Damn. Hey, remember when we all thought Sega was better off doing software only? Yeah, we were f*cking dumb.

Sega is too small to compete with EA head to head. I think the sales for ESPN 2k6 would have dropped like a rock now that the prices have gone up (before EA bought the name).

I''m mad at ESPN and the NFL for signing these deals. They should know that compeititon will get the best product for consumers. ESPN was builing a great name with the gaming community and now it is just another EA label.

For instance, there are 108 beads in a Catholic rosary and there are 108 stitches in a baseball. When I learned that, I gave Jesus a chance. ~Ron Shelton, Bull Durham, 1988

Europeon
Spunior's picture

Somewhat related topic, DFC Intelligence looking back at 2004 in their latest newsletter:

Quote:
EA Dominance

Electronic Arts is clearly in a league of its own when it comes to interactive entertainment software publishers. The company has dominated the 128-bit generation. As the chart below shows, EA''s stock has increased 123% in the past three years. The average for the industry as a whole was an 8% decrease over that period. The question other publishers are now asking is how can they possibly compete with EA.

Towards the end of 2004, EA showed that it would aggressively defend any challenge to its throne by using its substantial cash reserves. By the end of fiscal 2004 EA had over $2 billion in cash. In the second half of calendar 2004, Electronic Arts started to spend its money in some major deals including buying game developer/development tools provider Criterion Software, making a bid for Digital Illusions, signing an exclusive deal with the NFL and making a hostile investment in French publisher Ubisoft. The NFL and Ubisoft deals came in December and Wall Street responded enthusiastically. By the end of November 2004 EA stock was basically at the same price as at the start of 2004. In December 2004 EA stock increased 26%.

Our view of EA''s maneuvers are a little more skeptical. In some respects the EA deals can be seen as a sign of a company desperate to find ways to support a market valuation that seems to be heading from $15 billion towards $20 billion. All of the deals mentioned above seem to be done out of fear of the competition. Electronic Arts has never been a pioneer in game development and in much of 2004 the competition seemed to be getting the edge. Arguably EA''s two best games of 2004, Burnout 3 and The Sims 2, were developed basically by outside developers (although EA owns both development companies Criterion and Maxis). One of EA''s strongest PC game franchises of recent years, Battlefield 1942, was created by Digital Illusions. Most of the highest quality games of 2004 came from other publishers. Goldeneye: Rogue Agent was one of fall 2004''s most disappointing games. The company''s strongest in-house franchises remain sports titles and Need for Speed games.

Ubisoft is probably particularly galling to EA because, among developers, Ubisoft now has a stronger reputation as a place of creative innovation. When we talk to young developers we often hear that Electronic Arts is a great place for developers to start out and learn the ropes, but once a developer gains experience a company like Ubisoft provides more freedom of expression. This type of talk does not affect the short term business, but is always a worrisome long-term sign for a company trying to support an $18 billion market valuation.
Of course, Electronic Arts has the luxury of being able to buy itself out of trouble. Sega and Take-Two''s ESPN games were clearly making a dent in EA''s seemingly impenetrable sports game business. While they were competing mainly on a budget pricing strategy, the ESPN games were just as good as the EA Sports products. Clearly quality alone is no longer enough to support the EA Sports games. This means EA is forced to go to expensive deals to lock in an exclusive license.

None of our statements are meant to apply that anyone is close to challenging Electronic Arts'' dominance. The challenge Electronic Arts faces is how they can continue to match their own incredibly successful track record. In our view it is always a worrisome sign when a company looks to use its checkbook to make potential problems go away. Increasingly this is something EA has been forced to do. Right now EA is one of the few companies with the luxury of deep pockets. Sony and Microsoft have pretty much given Electronic Arts a pass on competing in software during the 128-bit generation. However, this is likely to change in the near future. Media conglomerates like Viacom and News Corp are once again eyeing the video game business with interest. One thing these large companies can do is write big checks. Yes, EA has been dominating in recent years. No, that dominance is anything but assured going forward.