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Mon Jan 10, 2005 02:10 PM ET
LOS ANGELES, Jan 10 (Reuters) - Video game publisher Take-Two Interactive Software Inc. (TTWO.O: Quote, Profile, Research) is seeking longer-term licensing deals with professional sports leagues because of the increasing cost of developing and marketing games, company executives said on Monday.
Take-Two markets and publishes sports games developed by Sega Sammy Holdings Inc.'s (6460.T: Quote, Profile, Research) Visual Concepts studio. Take-Two also has the option to acquire Visual Concepts.
The move to lock down deals comes shortly after rival Electronic Arts Inc. (ERTS.O: Quote, Profile, Research) struck an exclusive agreement with the National Football League, undercutting Take-Two's increasingly successful "ESPN NFL 2K" franchise. Take-Two must drop NFL league and player insignia from its game.
"We're asking the other leagues and talking to the other leagues about longer-term commitments," said Paul Eibeler, Take-Two's president, in a presentation at a Smith Barney investment conference in Phoenix.
Eibeler said the leagues have been "understanding" and "receptive" to Take-Two's desire for longer deals, given the rising expense of developing titles for the next generation of video game consoles and marketing in a crowded environment.
Eibeler did not quantify the terms of the deals Take-Two sought from the leagues, other than to say they would hopefully be longer than current one- to two-year contracts.
He also said Take-Two was pleased with holiday-season sales, including a late pickup for its game distribution business closer to Christmas.
"We had a very very strong November and December for the distribution business," Eibeler said.
LOS ANGELES, Jan 10 (Reuters) - Video game publisher Take-Two Interactive Software Inc. (TTWO.O: Quote, Profile, Research) is seeking longer-term licensing deals with professional sports leagues because of the increasing cost of developing and marketing games, company executives said on Monday.
Take-Two markets and publishes sports games developed by Sega Sammy Holdings Inc.'s (6460.T: Quote, Profile, Research) Visual Concepts studio. Take-Two also has the option to acquire Visual Concepts.
The move to lock down deals comes shortly after rival Electronic Arts Inc. (ERTS.O: Quote, Profile, Research) struck an exclusive agreement with the National Football League, undercutting Take-Two's increasingly successful "ESPN NFL 2K" franchise. Take-Two must drop NFL league and player insignia from its game.
"We're asking the other leagues and talking to the other leagues about longer-term commitments," said Paul Eibeler, Take-Two's president, in a presentation at a Smith Barney investment conference in Phoenix.
Eibeler said the leagues have been "understanding" and "receptive" to Take-Two's desire for longer deals, given the rising expense of developing titles for the next generation of video game consoles and marketing in a crowded environment.
Eibeler did not quantify the terms of the deals Take-Two sought from the leagues, other than to say they would hopefully be longer than current one- to two-year contracts.
He also said Take-Two was pleased with holiday-season sales, including a late pickup for its game distribution business closer to Christmas.
"We had a very very strong November and December for the distribution business," Eibeler said.