Electronics Arts announced today that it has negotiated an exclusive five-year contract with the NFL and the NFL Players Association for "action simulation, arcade-style and manager games" on all platforms except mobile phones. The agreement, whose financial terms were not disclosed, effectively puts an end to competing NFL series such as ESPN Football (Sega/Take Two), NFL Blitz (Midway), NFL Gameday (Sony), and NFL Fever (Microsoft). EA currently produces two NFL series, Madden NFL and NFL Street; the giant publisher is currently the only company still releasing football titles on the GameCube, GBA, and DS, and it looks like that will not change in the near future. The full press release from EA is below.
EA Enters into Exclusive Agreements with NFL and PLAYERS INC to Expand and Integrate Customer Entertainment Experience
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 13, 2004--Electronic Arts (NASDAQ:ERTS) today announced exclusive licensing relationships with the National Football League and PLAYERS INC to develop, publish and distribute interactive football games. These five-year agreements -- which EA negotiated separately -- give EA the exclusive rights to the NFL teams, stadiums and players for use in its football videogames. Both agreements also include exclusive rights for console online features. Financial terms of the agreements were not disclosed.
For the first time, all aspects of the interactive experience -- including console-based fantasy football features and handheld game devices -- will be fully integrated with one EA game. This also provides the opportunity for new games and for EA to access both NFL Films and the NFL Network for use in the games.
"We are pleased to expand our agreement with Electronic Arts, the leading video game manufacturer and a valued NFL partner," said NFL Commissioner Paul Tagliabue. "We look forward to working with EA to continue to enhance the quality of NFL video games that our fans have enjoyed for many years."
"For more than a decade, EA has produced the most authentic football product for fans of the game," said PLAYERS INC Chairman Gene Upshaw. "This exclusive relationship will maximize the value of NFL players through EA's continued commitment to bring fans closer to the game."
"We are excited about the opportunity to further enhance our relationship with the NFL and PLAYERS INC," said Larry Probst, Chairman and CEO of Electronic Arts. "The five-year agreements will usher NFL fans through the console technology transition with new ideas and innovative game play experiences."
Both agreements are exclusive for action simulation, arcade-style and manager games on the PC, handheld game devices and consoles -- including console online features. The agreements do not include exclusive rights to other types of games or games accessible from the Internet or wireless devices, including cellular phones.
Madden NFL Football from the EA SPORTS(TM) brand has sold more than 42 million copies over the franchise's 15 year history. Madden NFL 2005, the most complete football game ever, is available for the PlayStation(R)2 computer entertainment system, Xbox(R) videogame system from Microsoft, Nintendo GameCube(TM), Game Boy(R) Advance, the PlayStation(R) console and PC. NFL STREET 2 for the PlayStation 2 console, Xbox system and Nintendo GameCube will be on store shelves by December 26, 2004. Both games were developed by EA Tiburon, and rated "E" (Everyone) by the ESRB. The games official websites are www.madden2005.com and www.nflstreet2.com.
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Originally posted by: PaLaDiN
You've got to admit their slogan now holds a delicious tinge of irony.
EA Games: Challenge Everything.
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Originally posted by: Ian Sane
Well on the bright side no one can honestly say I'm too hard on EA now. I mean I've got the ultimate response to all EA defenses.
Ian: "EA is the console equivalent of MS. Their success is ruining the industry."
Some random idiot: "You're wrong. EA makes tons of quality software and have helped bring the industry into the mainstream."
Ian: "EA bought the exclusive rights to the NFL to eliminate their competition."
Some random idiot: "Uh..."
This should also test my theory that EA's "high level of quality" is merely the lowest level of quality they feel they can get away with without losing sales. Madden (and NFL Street which is now Madden's only competitor) will now take a HUGE drop in quality because EA knows that if you're an NFL fan you ain't buying something else. For example observe the quality of the WWE games now that WCW and ECW are out of the picture.
It's interesting to note that EA has now killed off gaming franchises belonging to Sony and MS. I wonder how that's going to affect their relationship with those console makers.
QuoteWait ... the video games rights to the Olsen twins, or the twins themselves?
Originally posted by: Professional 666
EA buys Mario, Halo, Olsen Twins, TELEVISION, PSP, IGN, and Harvest Moon.
That's it, we're doomed.
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If this madness does not stop, we will be seeing a EA console soon
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For example observe the quality of the WWE games now that WCW and ECW are out of the picture.
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Originally posted by: Ian Sane
"EA is the console equivalent of MS. Their success is ruining the industry."
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Like them of hate them, you have to admit computers wouldn't be what they are today without MS (By that, I mean probably worse)
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Originally posted by: anubis6789
I bet Sega is having a mixed reaction to this news, on one hand they can't use the NFL liscense anymore and thats bad, but they also (in a way) made a sucsessful challenge to EA. Look at it this way if Sega and the ESPN line hadn't made as big an impact then EA would not have done this. EA did this out of fear, fear that they might not be number one.
While most see this as the beginings of a monopoly I see this move, coupled with the news of EA's treatment of its employees and other bad news as a sign that EA might be crumbling, well I hope at least.
Maybe this will usher in an age of sports games not having to be liscensed to sale, which has been a dream of mine for a long time.
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Originally posted by: The NFL two years from now
Well, you have to understand our position. We changed our minds and sold NFL licences to Sega, Midway, Sony, and Microsoft because we're poor and we like money. You're a stupid nobody who doesn't understand economics. We're a business. Money is important to us. We're not just here to entertain people.
Also, we know that we said it would be exclusive for 5 years, but the term "exclusive" only ever applies to one console generation, and we've entered a new one now, so the deal is void.
Also, we weren't lying when we said it was going to be exclusive, because we believed 100% that it would end up being true back when we said it, therefore it wasn't a lie.
Oh and by the way, I'm just as upset about this as you are. The NFL has turned me into a liar. Which is why I'm quitting the NFL in protest and joining the NFLPA.
Edit: Oh and, I don't see what you're complaining about. EA still has an NFL licence. We haven't taken that away yet. There will still be NFL games from EA. So when you think about it, this development doesn't even really affect EA at all. I'm thinking that you don't even have a right to complain about it. If you're upset about this, well... that's your problem, not mine.
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Originally posted by: Silks
So I guess the question would be, does Electronic Arts have a legitimate business justification for securing this license?
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Originally posted by: Asterix
And it's not like it would be that hard to throw in an option that changes the three downs to four and removes all single point possibilites for you Americans that insist on your NFL rules.
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Originally posted by: UncleBobQuote
Originally posted by: Silks
So I guess the question would be, does Electronic Arts have a legitimate business justification for securing this license?
Yes. That's like saying because Nintendo gave Capcom exclusive rights to make Zelda games, they're giving Capcom a monopoly and Sony should be allowed to make Zelda games as well.
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Originally posted by: kingvudu
I seem to remember hearing back in the day of NBA Jam that Midway didn't have the rights to put Michael Jordan in its games, so instead a fictional character was used that looked the same and had the same stats.
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Originally conceived by: Silks
And a game in which you create your own rosters will sell ONLY to the ultra-hardcore; anybody that's employed isn't going to have the time to input all of that information...
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This was recently said by: matt oz
Anyway, a few years ago, I would have thought this was an awful and unfair business move. But ever since I started business school, I see things a lot differently, and I think this is an ingenious move. If you have an advantage over your competitor(s), then use it.
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This was Segas chance, and they missed it. Who is running the show over there anyway, Sammy Corp? Had Sega pulled this off, you guys would be parading in the streets
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Originally posted by: Silks
No. The difference is that Sony never WAS making Zelda games, and has and never WILL be able to make Zelda games, so nothing is being revoked. The customer isn't getting shortchanged because there wasn't competition in the first place. In the case of the EA/NFL, any real possibility of fair competition is being removed.