Electronic Arts, ESPN hook up in exclusive 15-year deal
01-17-05, 03:05 PM
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Electronic Arts, ESPN hook up in exclusive 15-year deal
Electronic Arts, ESPN hook up in exclusive 15-year deal
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.
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.
01-17-05, 03:07 PM
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EA teams up with ESPN
Fifteen-year deal could mean the end of long-standing Madden football games.
January 17, 2005: 3:32 PM EST
Game Over is a weekly column by Chris Morris
NEW YORK (CNN/Money) – Television's leading sports network and the leading maker of sports video games have signed a long-term deal that could signal the end of an era.
ESPN and Electronic Arts today announced a 15-year partnership, giving EA access to ESPN's broadcast, print and online content - as well as its stable of personalities - for all of its sports titles. The integration of the two brands will begin in 2006.
What that will mean for EA's long-standing Madden franchise remains unknown. Madden is under contract with the game publisher through this year, but has not signed beyond that. EA said negotiations are continuing.
"John Madden is under contract for the 2005-2006 season and we'll see where it goes from there," said Larry Probst, CEO of Electronic Arts. "But let's not forget that Madden is a part of the ESPN family with Monday Night Football. ... It's possible we'll continue working with John longer term."
While the marketing relationship will likely be most visible in upcoming football games, ESPN assets will appear in all of EA's sports lines, including baseball, basketball, boxing, golf and racing. The two companies are also planning to create new games based on ESPN content, such as the network's popular X-Games.
"Nothing finalized," said John Skipper, executive vice president for ESPN/Disney. "It's natural we'd think about things such as the X-games. We certainly play a lot of poker on our air, so we're thinking about that. We're also thinking about bass. We have the rights to the bass license."
(Probst, by the way, wasn't quite as excited as Skipper about a bass fishing game, so don't get your virtual rod and reel out yet.)
The deal is the latest in a series of sports coups for EA. In December, the company clinched an exclusive licensing deal with the NFL and NFL Players Association. Under the terms of that deal, no other publisher can develop or publish a video game (for any system) featuring NFL teams, players, stadiums or footage for the next five years. Last week, the company struck a similar deal with the Arena Football League.
ESPN, ironically, was EA's chief competitor in the football space (by far the most popular – and profitable – sports video games). The company had previously teamed with Sega, Take Two Interactive and developer Visual Concepts to create its own brand. Spurred by bargain pricing, "ESPN NFL 2K5" proved to be a formidable threat, cutting into EA's sales and attracting a wide audience.
With EA securing the NFL rights, though, the network said an alignment made sense. While the two companies have talked off and on about a partnership several times in the past, the heart of this deal was done after EA won the NFL rights.
"We were very happy with our relations with Sega," said Skipper. "However, if you think about who you want to be working with for the long term ... EA is the natural choice for us to be associated with."
Sports games make up roughly one-third of EA's annual revenues (which were $3.2 billion last fiscal year). While Probst would not say whether additional deals were in the works, he did say "anything we can do to solidify and make [our sports franchises] stronger, we're open to those strategic alternatives."
EA and John Madden have teamed up for football video games for the past 15 years and have become almost pseudonymous. However, speculation about whether EA would maintain the current relationship began soon after it announced the NFL deal. With the league license secured, the publisher may be reexamining ways to lower its development costs.
Despite the strength of the ESPN brand, EA (Research) does not plan to use the network's name in its game titles as it has with Madden. Should the company's relationship with Madden change, the games will likely be branded simply "EA Sports Football".
The loss of ESPN is a significant blow to Take Two (Research), which had been hoping to diversify its product line with sports games. While its relationship with Sega and Visual Concepts still stands, the companies no longer have a well-known hook with which to attract customers.
The companies have not announced specific plans for the sports market since the EA-NFL announcement, but Probst said he thinks it's unwise to assume EA will not have competition in some form.
"I think there's plenty of room for competition," said Probst. "At the end of the day its who can build the highest quality products. There's plenty of room for other third party companies - and console first-party companies - to do that. Just because EA Sports and ESPN are partnering I don't think people are going to run for the hills and not compete with us."
Fifteen-year deal could mean the end of long-standing Madden football games.
January 17, 2005: 3:32 PM EST
Game Over is a weekly column by Chris Morris
NEW YORK (CNN/Money) – Television's leading sports network and the leading maker of sports video games have signed a long-term deal that could signal the end of an era.
ESPN and Electronic Arts today announced a 15-year partnership, giving EA access to ESPN's broadcast, print and online content - as well as its stable of personalities - for all of its sports titles. The integration of the two brands will begin in 2006.
What that will mean for EA's long-standing Madden franchise remains unknown. Madden is under contract with the game publisher through this year, but has not signed beyond that. EA said negotiations are continuing.
"John Madden is under contract for the 2005-2006 season and we'll see where it goes from there," said Larry Probst, CEO of Electronic Arts. "But let's not forget that Madden is a part of the ESPN family with Monday Night Football. ... It's possible we'll continue working with John longer term."
While the marketing relationship will likely be most visible in upcoming football games, ESPN assets will appear in all of EA's sports lines, including baseball, basketball, boxing, golf and racing. The two companies are also planning to create new games based on ESPN content, such as the network's popular X-Games.
"Nothing finalized," said John Skipper, executive vice president for ESPN/Disney. "It's natural we'd think about things such as the X-games. We certainly play a lot of poker on our air, so we're thinking about that. We're also thinking about bass. We have the rights to the bass license."
(Probst, by the way, wasn't quite as excited as Skipper about a bass fishing game, so don't get your virtual rod and reel out yet.)
The deal is the latest in a series of sports coups for EA. In December, the company clinched an exclusive licensing deal with the NFL and NFL Players Association. Under the terms of that deal, no other publisher can develop or publish a video game (for any system) featuring NFL teams, players, stadiums or footage for the next five years. Last week, the company struck a similar deal with the Arena Football League.
ESPN, ironically, was EA's chief competitor in the football space (by far the most popular – and profitable – sports video games). The company had previously teamed with Sega, Take Two Interactive and developer Visual Concepts to create its own brand. Spurred by bargain pricing, "ESPN NFL 2K5" proved to be a formidable threat, cutting into EA's sales and attracting a wide audience.
With EA securing the NFL rights, though, the network said an alignment made sense. While the two companies have talked off and on about a partnership several times in the past, the heart of this deal was done after EA won the NFL rights.
"We were very happy with our relations with Sega," said Skipper. "However, if you think about who you want to be working with for the long term ... EA is the natural choice for us to be associated with."
Sports games make up roughly one-third of EA's annual revenues (which were $3.2 billion last fiscal year). While Probst would not say whether additional deals were in the works, he did say "anything we can do to solidify and make [our sports franchises] stronger, we're open to those strategic alternatives."
EA and John Madden have teamed up for football video games for the past 15 years and have become almost pseudonymous. However, speculation about whether EA would maintain the current relationship began soon after it announced the NFL deal. With the league license secured, the publisher may be reexamining ways to lower its development costs.
Despite the strength of the ESPN brand, EA (Research) does not plan to use the network's name in its game titles as it has with Madden. Should the company's relationship with Madden change, the games will likely be branded simply "EA Sports Football".
The loss of ESPN is a significant blow to Take Two (Research), which had been hoping to diversify its product line with sports games. While its relationship with Sega and Visual Concepts still stands, the companies no longer have a well-known hook with which to attract customers.
The companies have not announced specific plans for the sports market since the EA-NFL announcement, but Probst said he thinks it's unwise to assume EA will not have competition in some form.
"I think there's plenty of room for competition," said Probst. "At the end of the day its who can build the highest quality products. There's plenty of room for other third party companies - and console first-party companies - to do that. Just because EA Sports and ESPN are partnering I don't think people are going to run for the hills and not compete with us."
01-17-05, 04:27 PM
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Wow. This could suck. No competition is never a good thing. I prefer madden over NFL2Kx greatly, but NBA2K kills NBA Live. But of course, as long as sega keeps NBA rights we'll hopefully still get that series. I couldn't care less about losing the ESPN license gameplay wise.
01-17-05, 04:32 PM
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damn EA is out of control.
I love my Xbox ESPN College Hoops 2K5. Man all this because of $19.99. I bet Take-Two didn't see this coming
01-17-05, 05:44 PM
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Originally Posted by jeffdsmith
Up Next: When Capitalism Fails, a True Videogame Story
01-17-05, 05:54 PM
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I would be really suprised if the FTC didn't get involved in this. This behavior is more aggregious that Microsoft's inclusion of IE in Windows.
Man, oh man. I love Madden, but I may have to start boycotting EA. This is horrible behavior for a comapny who is already facing a serious lawsuit for mistreating its employees.
This may be the most evil company in America right now. Wow.
Man, oh man. I love Madden, but I may have to start boycotting EA. This is horrible behavior for a comapny who is already facing a serious lawsuit for mistreating its employees.
This may be the most evil company in America right now. Wow.
01-17-05, 06:09 PM
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Originally Posted by Goldblum
Not saying this is a good thing, but this is capitalism at its finest.
I certainly understand what you are saying but:I disagree completely. At it's fundemental base capitalism is an economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market. Plain capitalism fails to address monopoly situations, situations in which only one choice is offered. When only one choice is offered, and all other are prevented from ever being offered, there is no longer a free market. So if EA is able to leverage itself as the only game in town (excuse the pun), how is capitalism working? It's not.
This is exactly why the United States has enacted anti-trust laws, because it is a recognized flaw with capitalism. Regarding the situation with EA, laws don't really effect it, after all, anyone can still make a football game. There's the real problem though, because anyone can still make football games, legally EA is safe. How many people are going to buy a football game with noname teams and players though? I don't care how damn good a game is, if people don't see names and teams they recognize they aren't going to buy into it.
Last edited by jeffdsmith; 01-17-05 at 06:15 PM.
01-17-05, 06:17 PM
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Well the other shoe falls. I agree with the fact that the ESPN name doesnt do much for me, it's the gameplay that won me over but ESPN does help. I've really got my fingers crossed that EA purchases Visual Concepts and lets them operate without inteference. Let Sega continue to make the games it's famous for but they should let Visual Concepts benefit from a larger company with more marketing money. Why should Sega keep VC now? There will be few sports games they sell any more even though I will stick with them. The loss of ESPN could cause VC to crumble within 4 years because there will the rigors of creating games to take advantage of the next-gen consoles and without a lot of cash flowing in (loss of NFL really hurts here) how can they afford to keep up. I dont remember VC doing any other real games except for sports though I think there was talk to them doing a non-sports game a while back. So where's the benefit in keeping them?
01-17-05, 07:13 PM
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First they get the exclusive NFL license, and now they get exclusive ESPN access. I'll say it again... EA sucks. They're going all out to monopolize NFL gaming.
Will we have a choice aside from Madden 2KX?
Will we have a choice aside from Madden 2KX?
01-17-05, 07:33 PM
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Hell, NHL2004 and 2005 are crap, when we want to play hockey, we pull out our NHL2K5, they are concentrating so much on contracting the sports that they don't realize that their games suck!
01-17-05, 09:33 PM
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I fail to see why this is so horrible.
I mean, Sega's games did alright before the ESPN partnership. And it's not like Sega's not allowed to make their own games anymore. Plus some of EA's games (the college ones at least) already used ESPN talent. Am I missing something here, or are you just looking for another excuse to bash EA?
I mean, Sega's games did alright before the ESPN partnership. And it's not like Sega's not allowed to make their own games anymore. Plus some of EA's games (the college ones at least) already used ESPN talent. Am I missing something here, or are you just looking for another excuse to bash EA?
01-17-05, 09:51 PM
#25
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WildcatLH,
It just takes away marketing from Sega, making it that much harder for them to sell their games.
Sega NBA2K6 doesn't have the same ring to it to casual gamers as ESPN NBA2K6.
Factor in that they're screwed by EA already in football as they can't use NFL teams or players and Visual Concepts will have a hard time keeping afloat.
It just takes away marketing from Sega, making it that much harder for them to sell their games.
Sega NBA2K6 doesn't have the same ring to it to casual gamers as ESPN NBA2K6.
Factor in that they're screwed by EA already in football as they can't use NFL teams or players and Visual Concepts will have a hard time keeping afloat.