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[sonycowboy]

http://yahoo.reuters.com/financeQuo...tfh03849_2004-11-09_22-08-59_n09571490_newsml

Tue Nov 9, 2004 05:08 PM ET
LOS ANGELES, Nov 9 (Reuters) - Video game publisher Take-Two Interactive Software Inc. (TTWO.O: Quote, Profile, Research) believes its experiment with discounted sports games has been successful but it will not yet commit to a price for the games next year, Take-Two president Paul Eibeler said on Tuesday.

Take-Two, in partnership with Sega Sammy Holdings Inc. (6460.T: Quote, Profile, Research) , sells the "ESPN" sports games for $19.99. Until last year, those games were published by Sega alone and sold for around $40.

At that price, the Sega sports games were regularly outsold by competing titles from Electronic Arts Inc. (ERTS.O: Quote, Profile, Research) But this year, the gap narrowed as the ESPN games got equal ratings to the EA titles at a fraction of the price.

"Our long-term strategy includes a short-term value pricing to encourage consumers to try the ESPN games," Eibeler said at a Harris Nesbitt investment conference in New York.

EA slashed the prices of its sports titles Monday in a move to defend market share, one analysts saw as an admission the competition was tougher than expected.

But Eibeler refused to be drawn on whether Take-Two would charge a higher price for its sports games in 2005.

"We look at opportunities going forward, we'll make judgments or decisions as we move forward," he said.

 

[DJPS2]

Rut-roh. My instincts tell me not to expect to pay just $20 for ESPN games next year.

Of course... there'll be one less game, since hockey is dead.

 

[joshschw]

I'm guessing they'll keep the $19.99 prices one more year and raise them the following year for the nextgen consoles. they nearly outsold ea this year and they have to build a even larger fan base next year.

or maybe I just like it at $19.99

 

[BlackClouds]

I expect the to stay at $19.99. Intense competition with EA is probably the reason why Take2/Sega does not want to tip their hand so early. EA doesn't seem sure at all in how to handle the pricing. I wonder what NBA2k5 sold, it must've done very well for EA to try to stem the tide so early (along with NHL 2k5 destroying NHL 2005 in unit sales, like I originally suspected would happen).

 

[Dave Long]

They should keep the $20 price and just charge those that play online an additional $5-$10 fee for a year.

 

[Deku Tree]

They don't want to tip their hand to EA until it's absolutely necessary.
Hard to see them raising the price before Next-Gen though.

 

[Willco]

I bought NBA2K5 over NBA Live due to the pricing.

 

[dskillzhtown]

I see the price going up to 30. Still cheaper than the 50 buck usual price, but gives you more of a chance to make a profit.

 

[Willco]

Raising the price makes no sense, though. They better put a metric shitload of content in next year's sports titles that was not in this year's for anyone to buy it at a higher price.

 

[UbiSoftologist]

I see the price going up to 30. Still cheaper than the 50 buck usual price, but gives you more of a chance to make a profit.

Your view is similar to Michael Pachter's. The Wedbush Morgan analyst expected EA to lower the prices of its sports titles to $39.95 next year and T2 to increase the prices to $29.95. He also predicted EA to control 75% market share and T2 to own the remaining 25%. Both publishers would be solidly profitable at these levels.

 

[Cloudy]

I think they'll leave it at $20 one more year and raise it back to $50. The trick is to try to wait and see what EA's gonna do first.

If they come out and say $20 now, EA can just drop their prices too and kill that advantage with aggressive advertising...

 

[BojTrek]

No more sports games for me until X-Box 2 or PS3...

You all have probably read my posts, but I am done buying new games for this generation.

Unless I solve James Bond: Everything or Nothing, Max Payne II and Jedi Knights II... I can return all of them for a down-payment on Oddworld Stranger...

Beyond that, I am done with sports games until next-generation. I have TW:2005, ESPN NFL and NBA2K5 and NHL Hits Pro... I have all my sports needs...

 

[GDJustin]

It's already been said once in this thread, but to me it seems obvious that they're going to remain $20 next year. I personally think the days of $50 yearly sports updates are over. I think next gen we'll see them clock in at $30, and EA will most likely follow suit.