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Take-Two strikes back at EA by getting exclusive rights to MLB?

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UbiSoftologist

Member
According to Wall Street Journal:

Electronic Arts reaches ESPN deal
By NICK WINGFIELD
Staff Reporter of THE WALL STREET JOURNAL
January 18, 2005; Page B4

Electronic Arts Inc., in a forceful move to protect its sports videogame business, cut a 15-year deal with Walt Disney Co.'s ESPN channel to publish sports games that use the ESPN brand name and content from the sports channel.

The deal gives Electronic Arts, the No. 1 maker of game software, exclusive rights to publish ESPN videogames beginning in 2006 for personal computers, consoles and mobile phones across sports categories, including football, basketball and Nascar racing.

Executives from both companies declined to comment on the terms of the deal, but people familiar with the agreement said it calls for EA to pay ESPN a minimum of $850 million in cash and advertising commitments over the 15-year course of the pact...

..Take-Two, in a statement, said it believes it can still publish compelling sports games, even without its relationship with ESPN. "We wish ESPN the best of luck in their future relationship," the statement said. In another sign of how hotly contested sports videogames are, Take-Two is currently negotiating with Major League Baseball for exclusive rights to publish a baseball game, people familiar with the matter said. A Take-Two spokesman declined to comment; spokespeople for Major League Baseball didn't respond to calls for comment...
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Take-Two is currently negotiating with Major League Baseball for exclusive rights to publish a baseball game,
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:lol

EA makes all these deals for 10-15 years of exclusivity, then Take Two says "Oh yeah!? "Take Two signs deal with MLB for 1 exclusive baseball game.""
 
john tv said:
Nobody else should allow exclusive rights to be granted. We want choices!
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thank fucking christ i don't like most sports. i've never really felt any sort of relief at that before -- never really felt much about it at all, honestly, but with this nonsense happening i'm glad my favorite games feature the kind of shit that comes straight from people's heads and nowhere else.
 
john tv said:
Nobody else should allow exclusive rights to be granted. We want choices!
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Yeah, I was thinking the same thing, but there's little that seems to be doable with EA dropping their money bags everywhere. It seems to be rather cutthroat at the moment.
 
DMczaf said:
:lol

EA makes all these deals for 10-15 years of exclusivity, then Take Two says "Oh yeah!? "Take Two signs deal with MLB for 1 exclusive baseball game.""
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Perhaps T2's ambition goes beyond the MLB (http://yahoo.reuters.com/financeQuo...tfh34636_2005-01-10_19-10-57_n10519670_newsml):

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.
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That'll learn EA!!

"Who needs an identity, we've got baseball!"


How does Take-Two expect to get the MLB exclusive rights, now that their franchise has to start over again? There best move would be to court Fox Sports, so that they have some brandname recognition.


Does anyone know how rights are granted for the MLB? With Nintendo represented in the owner's group and T2's lack of support for their console... That'll be one vote against them.
 
If Take 2 got the lisence to a sport, would they then, if they wished, be allowed to allow other companies to use it if they pay a fee? Sort of like how SEGA and EA would have to come to an agreement if SEGA wants to make a Daytona USA 3?
 
God, you EA supporters who think this is okay make me sick.

Wait, Take Two did this?

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850 million dollars? Insane!! How does take-two expect to out bid EA for MLB when EA is throwing around that kind of money?
 
I think you all missed out on the important news.

The deal gives Electronic Arts, the No. 1 maker of game software, exclusive rights to publish ESPN videogames beginning in 2006 for personal computers, consoles and mobile phones across sports categories, including football, basketball and Nascar racing.
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EA has given up on it's shitty NHL line. :D
 
Bishman said:
Hmmm... then there is absolutely nothing Take-Two can do.
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Gary Cooper of Banc of America Securities agreed:

EA, meanwhile, has taken another step on the way to absolute domination of the sports game genre - and according to some analysts, may be on the verge of winning a "critical mass" of licenses which would force other leagues to fall in line with it.

"We believe that the new EA-ESPN agreement was a classic case of "if you can't beat 'em, join 'em" for ESPN," commented Banc of America Securities' Gary Cooper in a research note on the deal last night.

"Similarly, we believe the NBA, MLB, NCAA, NHL and other sports leagues face the choice of whether to lock in long-terms with EA now or potentially face a weakened bargaining position in the future when EA may be the only viable publisher of sports games," he concluded.
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Source: GamesIndustry.biz http://www.gamesindustry.biz/content_page.php?aid=6320
 
Could Nintendo of America owning a majority share of the Seattle Mariners have any implication on the negotiating that MLB would do with either EA or Take Two on an exclusive licensing agreement?
 
Bishman said:
Hmmm... then there is absolutely nothing Take-Two can do.
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I dunno, I think they can crank out quarterly GTAs, supplemented by Midnight Club. That should earn them some decent cash before those games burn out. But once those are gone... what does Take-Two and Rockstar really have...
 
this exclusivity stuff is getting to be really annoying now... and i already don't like sports games that much to begin with... i think i'll just have to give up on them altogether...
 
Fuzzy said:
Could Nintendo of America owning a majority share of the Seattle Mariners have any implication on the negotiating that MLB would do with either EA or Take Two on an exclusive licensing agreement?
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Actually, Hiroshi Yamauchi, ex-prez of Nintendo personally owns stake in the Mariners and not Nintendo the company.
 
The Faceless Master said:
this exclusivity stuff is getting to be really annoying now... and i already don't like sports games that much to begin with... i think i'll just have to give up on them altogether...
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That's how I feel about the situation. I fear this kind thing will also lead to anti-competitive measures in other situations.

If this is the future of competition in the industry, I will no longer play games. I want developers to compete for my dollars rather than set themselves up in contracts that will allow them to keep their prices at the level THEY want.
 
I suppose this type of retaliation is to be expected now. EA has gotten the ball rolling, now this is the new mentality these companies will have to have to compete (using compete loosely here).

My problem with the EA moves (addressed in probably all 10 EA topics, but thrown here for good measure), isn't that EA is throwing their weight around in such a way. It's that they don't have to. Madden 2005 is not far off from beating last years title and being the highest selling football game this gen http://www.ga-forum.com/showthread.php?t=32088

That isn't including January, and February which should be big months for football games because of the playoffs and Super Bowl, and the starting of lower pricing. And thats against a budget priced competitor. They've proven they can't be beaten.

I don't even think the sales of ESPN 2K5 took away from Madden 2005 in any substantial way. I'd wager that if you break it down most of the hardcore football gamers who bought ESPN bought Madden as well. And the rest were probably people who hadn't bought a football game in years, but were intrigued by the budget pricing.

Ironic that in sports, where sportsmanship is highly regarded..EA the maker of sports games has thrown that ideal right out the window.
 
The Faceless Master said:
why does R* North hate Nintendo?
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Stems back to the N64 days when Nintendo dropped DMA's Body Harvest (after signing them on as a "Dream Team" member). I'm guessing there was more to it than just that... ever since both have been pretty critical of the other, which is likely why GameCube never got (and never will get) a GTA release.
 
The Faceless Master said:
why does R* North hate Nintendo?
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During the N64's time, DMA was apart of Nintendo's "Dream Team." However, relations really soured between the two over DMA's Body Harvest game. DMA is now R* North.

edit:Jarrod beat me to it. He probably knows a bit more about the situation than I do anyway--I never really paid attention to the whole Dream Team thing that went on at that time.
 
kpop100 said:
I don't even think the sales of ESPN 2K5 took away from Madden 2005 in any substantial way. I'd wager that if you break it down most of the hardcore football gamers who bought ESPN bought Madden as well. And the rest were probably people who hadn't bought a football game in years, but were intrigued by the budget pricing.
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It can be argued that those people who bought both EA and Sega's NFL games this year would've decided to only buy Sega's NFL game next year because they thought it was better overall and therefor a better value (even if it was the same price as EA's game).
 
ge-man said:
edit:Jarrod beat me to it. He probably knows a bit more about the situation than I do anyway--I never really paid attention to the whole Dream Team thing that went on at that time.
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Not much, though Nintendo did the same with Angel Studios (who's now also part of the Rockstar collective). They were doing Buggy Boogie for N64, but at least that one was killed early on (and I don't think there's any real bad feelings).
 
Fuzzy said:
It can be argued that those people who bought both EA and Sega's NFL games this year would've decided to only buy Sega's NFL game next year because they thought it was better overall and therefor a better value (even if it was the same price as EA's game).
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true, didn't think of that aspect. although I'm surpised that EA could show lack of confidence in the Madden name.

BTW when does this deal kick-in. Before ESPN Baseball was due out this spring?

NM. I just read the starting in 2006 part.
 
It can be argued that those people who bought both EA and Sega's NFL games this year would've decided to only buy Sega's NFL game next year because they thought it was better overall and therefor a better value (even if it was the same price as EA's game).
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*dies*
 
More bad news...

In the research note entitled ''Shock & Awe, EA continues to dominate sports by signing ESPN,'' Michael Pachter of Wedbush Morgan Securities predicted T2 to terminate its sports games:

Electronic Arts and ESPN announced a long-term agreement for the development and integrated marketing of EA SPORTS games (current as well as new sport properties) containing ESPN content (ESPN telecast, print and online content). The agreement is for fifteen years with an option to terminate after ten years under certain conditions and gives EA exclusive first rights to all ESPN content for simulation sports games. Financial terms of the agreement were not disclosed.

The ESPN content will appear in EA SPORTS console, handheld, PC and wireless games beginning in 2006 upon the conclusion of ESPN's existing video game licensing commitments with Sega and Take-Two Interactive (TTWO-Buy-Focus List). Electronic Arts has made several recent moves to significantly strengthen its position in the sports video game market (such as its exclusive right to produce NFL video games). We believe EA sought an ESPN exclusive in order to eliminate competition from Take-Two Interactive's ESPN branded sport games.

We expect a negative market reaction for Take-Two, insofar as the company's foray into team sports diverted significant management attention and resources, and the potential discontinuity may leave a revenue gap in FY:06. However, given the company's low valuation relative to its peers, we maintain our Buy-Focus List rating on Take-Two. We expect Take-Two to discontinue its sport games when this new EA/ESPN deal takes effect. However, the earnings impact should be minimal as margins on Take-Two's sports games have been low. We currently have approximately $50 million in ESPN sport games revenue for Take-Two for its FY:05.

We believe that the ESPN exclusive will be positive for Electronic Arts, particularly insofar as it creates the potential for incremental sales due to consumer confusion over the ESPN brand. We see limited upside from current levels for its share price, and maintain our Hold on EA.
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This and aquiring the NFL liscense was such a bad idea by EA. Competition makes your product better. Look what happend do the WWE, now that WCW and ECW are gone, wrestling is crap. EA SUCKS!!!!!!!!!!!!!!!!
 
While I don't agree with this kind of crap, I have to say if any company were to get exclusive MLB rights, I'd prefer EA. MVP 2004 > all other baseball games!
 
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