http://www.gamespot.com/news/2004/09/23/news_6108303.html
When Sega and Take-Two first announced ESPN NFL 2K5 would sell for just $19.99, Electronic Arts scoffed at the idea. "Sounds like they're throwing in the towel," Jeff Brown, Electronic Arts' vice president of corporate communications, told the San Jose Mercury News in July. "They're signaling to consumers, retailers, and the NFL that they are no longer selling a premium product." Similar noises were made when ESPN NBA 2K5 and ESPN NHL 2K5 were also discounted to $19.99.
Two months later, Electronic Arts is singing a different tune. Speaking today to an assembly of analysts and traders at the BancAmerica Securities 34th Annual Investment Conference in San Francisco, EA CFO Warren Jensen announced a two-pronged attack to counter ESPN's pricing strategy.
First, Jensen revealed that NBA Live 2005's sticker price would be cut $10 to just $39.99, a $10 drop from EA Sports' games standard $49.99 price point. Secondly, Jensen announced that EA is launching an across-the-board, 3-for-2 promotion for all EA Sports titles. Starting next week, purchasers of any two EA Sports titles will be able to pick up a third free.
Despite the discount announcements, the EA CFO was eager to point out that EA Sports titles are selling very well at full price. "Through Sept 18, 2.4 million units of Madden sold worldwide," said Jensen, "and the $60 [PlayStation 2] Collector's Edition is virtually sold out." He also emphasized the enduring strength of all the EA Sports franchises, which are bestsellers year after year.
However, just in case anyone doubted that EA would not be competitive in Q4--worries exhibited in yesterday's $1.29 drop in the company's stock price--Jensen threw down the gauntlet. "There will be battles this holiday season," he said, "and we're going to be ready."
When Sega and Take-Two first announced ESPN NFL 2K5 would sell for just $19.99, Electronic Arts scoffed at the idea. "Sounds like they're throwing in the towel," Jeff Brown, Electronic Arts' vice president of corporate communications, told the San Jose Mercury News in July. "They're signaling to consumers, retailers, and the NFL that they are no longer selling a premium product." Similar noises were made when ESPN NBA 2K5 and ESPN NHL 2K5 were also discounted to $19.99.
Two months later, Electronic Arts is singing a different tune. Speaking today to an assembly of analysts and traders at the BancAmerica Securities 34th Annual Investment Conference in San Francisco, EA CFO Warren Jensen announced a two-pronged attack to counter ESPN's pricing strategy.
First, Jensen revealed that NBA Live 2005's sticker price would be cut $10 to just $39.99, a $10 drop from EA Sports' games standard $49.99 price point. Secondly, Jensen announced that EA is launching an across-the-board, 3-for-2 promotion for all EA Sports titles. Starting next week, purchasers of any two EA Sports titles will be able to pick up a third free.
Despite the discount announcements, the EA CFO was eager to point out that EA Sports titles are selling very well at full price. "Through Sept 18, 2.4 million units of Madden sold worldwide," said Jensen, "and the $60 [PlayStation 2] Collector's Edition is virtually sold out." He also emphasized the enduring strength of all the EA Sports franchises, which are bestsellers year after year.
However, just in case anyone doubted that EA would not be competitive in Q4--worries exhibited in yesterday's $1.29 drop in the company's stock price--Jensen threw down the gauntlet. "There will be battles this holiday season," he said, "and we're going to be ready."