EA proposes buyout of Take-Two

[Leebo33]

Good to see industry analysts using the "M" word, and for telling it like it is:

Being an "industry analyst" does not exactly give one any credibility in regards to antitrust matters. In fact, it probably clouds their judgment because they *want* it to be a monopoly.

I'm certainly no legal expert either, but to me it has to do with defining the market. If EA had a monopoly of the *videogame* software market then maybe I could see a possibility of it getting some attention from the government. But IMO EA being the only player in licensed sports videogames is not going to draw much attention outside of sports videogame enthusiasts. It would be like going after Frito-Lay for dominating the nacho cheese flavored tortilla chip market.

[webdanzer]

Not a monopoly. And I agree it is a market issue. US gamers simply don't buy non-licensed sports games to levels anywhere near licensed ones. Why? Because then they wouldn't be able to get all worked up about Joe Blow's batting stance being in the game, or the inclusion of the new stadium sign in the left-field bullpen, or certain players being under or over-rated.

It's a shame, but I don't blame companies for not trying.

[webdanzer]

I am not going to do anything as dramatic as giving up gaming, but it is dropping down the list of things I enjoy to do in my spare time.

If you are pretty much a sports-only gamer, I can see why you feel that way. As a more 'general' videogamer, though, I don't remember a better time. 2007 had incredible titles that I still haven't worked my way all the way through, you got the innovation of the Wii and burgeoning new 'platforms' like Rock Band, and even the Live Arcade stuff has been getting better lately.

But I am starting to feel like a bit of a traitor for frequenting 'sports'gaming sites. I don't play them much anymore.

[GTHobbes]

I respect you guys' opinions, and I'm probably the one who's wrong here, but have you even looked at a definition for monopoly? "Where there is only one provider of a product or service in a particular market," "a control that makes possible the manipulation of prices," etc. I may be the dummy here but it sure seems to match the definition of the word to me.

I do agree though that whether anybody does anything about it is a completely different story. Hopefully a good plaintiff's attorney will see the MULTI-BILLIONS OF DOLLARS at stake and give it a go.

[webdanzer]

I respect you guys' opinions, and I'm probably the one who's wrong here, but have you even looked at a definition for monopoly? "Where there is only one provider of a product or service in a particular market," "a control that makes possible the manipulation of prices," etc. I may be the dummy here but it sure seems to match the definition of the word to me.

I do agree though that whether anybody does anything about it is a completely different story. Hopefully a good plaintiff's attorney will see the MULTI-BILLIONS OF DOLLARS at stake and give it a go.

What market are you talking about, GT?

Some would say the market is simply videogames. Does EA have a monopoly of all videogames produced for all genres, all systems? Of course not.

How about we call the market sports video games. Does EA have a monopoly there? Nope, no 'control' is being exerted over other game companies at all...all are free to develop sports games. Baseball, football, whatever. They choose not to do so because no one will buy such games, but nothing EA is doing is preventing anyone from doing so. No 'control,' as in your definition. Same goes even if you define the market as 'Baseball Videogames.'

You can't define the market as 'MLB Baseball videogames,' for example, as that is a ridicuoulsly narrow definition, and MLB is well within its rights to grant or withhold its license to/from whomever they like.

Why not go after Lego, then, for holding a 'monopoly' in the 'little building block adventure video game' market?

[pk500]

It's not a monopoly.

This is not analogous to Microsoft's domination of Web browser market. In that situation, MS was bundling IE with its operating system and preventing PC manufacturers from going without it. If PC manufacturers didn't take Windows 95 and 98 with IE, then they wouldn't get Windows for their machines. That killed Netscape.

MS tried to do the same thing with Windows XP and Windows Media Player, and the European Union forced MS to offer a version of XP with WMP.

But this is not a bundle situation. If EA games only were playable on an EA-produced console, then you might have a case.

NO ONE IS PREVENTING OTHER COMPANIES FROM MAKING SPORTS VIDEO GAMES. IT IS NOT A MONOPOLY.

And this talk about possible government intervention is sheer folly. These are sports video games, not computer software. The vast majority of American consumers own and use a PC every day; they don't own and use sports video games every day.

I guess the NFL should be sued. It's the only professional football league in America. Same with the NHL, NASCAR, MLB, NBA, PGA Tour, etc. No one is stopping another league from being formed in any of those sports.

As a PC gamer who concentrates mostly on racing games and non-sports games, this deal has little effect on me. But even EA Sports games on the PC are quite tolerable due to the excellent mods available on the Web.

Take care,
PK

[wco81]

Best analogy is, aren't licensed jerseys or collectors cards exclusive to one company or another?

Doesn't the NFL have an exclusive license with Direct TV for Sunday Ticket?

Or doesn't all the leagues have exclusive deals with Nike or Reebok for not just the uniforms but the clothes worn by other team personnel?

Of Samsung is the official HDTV of the NFL or some other crap like that?

Or Coke has some exclusive deal to sell drinks at the Cowboys' stadium?

If you developed a successful brand identity, are you forced to license that brand to every and all comers or just to whichever entity is willing to pay you the most? There might be other criteria, such as whether a would-be licensor would somehow cause damage to the brand.

[GTHobbes]

Doesn't the NFL have an exclusive license with Direct TV for Sunday Ticket?

I'm not sure how Directv gets away with their exclusive. Remember, last year there was talk about an exclusive with MLB that would've shut out Dish Network, the cables, etc., and then Kerry got involved, and that pretty much ended that.

I'm familiar with a case here in Georgia, where several counties got together and decided to have an exclusive EMS provider. When one of the losing bidders challenged the exclusive in court, it was upheld because of the "state action" doctrine, i.e., because the EMS provider was performing a state function, there could be no monopoly/antitrust action.

Here, there's no state action involved, and presumably, the case would get past a motion to dismiss, IMO.

[JRod]

It's not a monopoly.

This is not analogous to Microsoft's domination of Web browser market. In that situation, MS was bundling IE with its operating system and preventing PC manufacturers from going without it. If PC manufacturers didn't take Windows 95 and 98 with IE, then they wouldn't get Windows for their machines. That killed Netscape.

MS tried to do the same thing with Windows XP and Windows Media Player, and the European Union forced MS to offer a version of XP with WMP.

But this is not a bundle situation. If EA games only were playable on an EA-produced console, then you might have a case.

NO ONE IS PREVENTING OTHER COMPANIES FROM MAKING SPORTS VIDEO GAMES. IT IS NOT A MONOPOLY.

And this talk about possible government intervention is sheer folly. These are sports video games, not computer software. The vast majority of American consumers own and use a PC every day; they don't own and use sports video games every day.

I guess the NFL should be sued. It's the only professional football league in America. Same with the NHL, NASCAR, MLB, NBA, PGA Tour, etc. No one is stopping another league from being formed in any of those sports.

As a PC gamer who concentrates mostly on racing games and non-sports games, this deal has little effect on me. But even EA Sports games on the PC are quite tolerable due to the excellent mods available on the Web.

Take care,
PK

Maybe Rob would know, but I would like to know if there's precedent for this.

The only way it will be proven that it's a monopoly is if a challenged in court. But that's not going to happen.

[XXXIV]

Im not happy with the NFL either...Both those exclusives(direct TV and EA) hurt their fans...

[wco81]

NFL isn't a public company with shareholders but the only responsibility they probably feel they have is to maximize profits.

And they judged that Madden and Direct TV deals get them the most profits.


Fans are free to not buy Madden or the increasing prices on Sunday Ticket.

[JRod]

Fans are free to not buy Madden or the increasing prices on Sunday Ticket.

Exactly. The only hope we have is if people stop buying Madden or at least enough people stop buying madden to make the NFL take notice.

[XXXIV]

Fans are free to not buy Madden or the increasing prices on Sunday Ticket.

Thank you Mr Free Enterprise....the point stands...It sux for us.

[dougb]

Yup, it sucks for us and I think that the only potentially effective option would be a mass consumer boycott.

Err...Anybody want to volunteer to start organizing that?

Best wishes,

Doug

[Jimmydeicide]

Fans are free to not buy Madden or the increasing prices on Sunday Ticket.

Exactly. The only hope we have is if people stop buying Madden or at least enough people stop buying madden to make the NFL take notice.

You think the NFL cares if Madden sells or not? They all ready have their money dont they? unless its contingent on sales.
Ea are the only ones who can stop the madness and unless ther is a boycott of huge proportions are they ever going to concider it.

[XXXIV]

Yup, it sucks for us and I think that the only potentially effective option would be a mass consumer boycott.

Err...Anybody want to volunteer to start organizing that?

I would but Im going to be too busy playing Madden 09.....

[Zeppo]

NFL isn't a public company with shareholders but the only responsibility they probably feel they have is to maximize profits.

And they judged that Madden and Direct TV deals get them the most profits.

You think the NFL cares if Madden sells or not? They all ready have their money dont they? unless its contingent on sales.
Ea are the only ones who can stop the madness and unless ther is a boycott of huge proportions are they ever going to concider it.

I wholly blame the NFL for the exclusivity, not EA. For EA, to have the NFL dangle the possibility of exclusivity is too great a temptation, too obvious a smart move to not take advantage of it.

For the NFL, it's idiocy bordering on insanity, and as far as I'm concerned, wholly due to a complete lack of understanding of video game culture. I just don't get how, if they can get this 100% of their asking price from EA, that they could not get at the very least 105% of that amount by offering non-exclusive licenses to multiple publishers. And of course, in my view, they would do less damage to their overall brand than they are by locking themselves into the EA-only universe.

This stuff isn't the same as TV providers, or T-shirt / replica jersey makers, or magnetic car decals, or whatever else the NFL has found success in extorting absurd amounts of cash for exclusivity deals. They're entirely stupid when it comes to this stuff, and I tend to believe that somehow it will end up biting them in the ass. It'll take a long time for that to play out, but already Madden has lost sales this past year.

Unfortunately, the days of the World Football League, or the AFL, or even the USFL are long since over. If there's no hope of real competition to the NFL itself, there's no reason for them to be able to comprehend the idea of competition in the realm of video games.

But if the NFL didn't offer exclusivity from their own ideas, EA would never have been able to convince them to embrace it on their own.

it's all Danny Snyder's fault.

[dougb]

Yup, it sucks for us and I think that the only potentially effective option would be a mass consumer boycott.

Err...Anybody want to volunteer to start organizing that?

I would but Im going to be too busy playing Madden 09.....

Me too

Best wishes,

Doug

[XXXIV]

Yup, it sucks for us and I think that the only potentially effective option would be a mass consumer boycott.

Err...Anybody want to volunteer to start organizing that?

I would but Im going to be too busy playing Madden 09.....

Me too

Best wishes,

Doug

Sad but true...they have us by the balls....

[Danimal]

I would but Im going to be too busy playing Madden 09.....

That's whats funny to me about this whole thing. Maybe it is my age or I just have more important things going on in my life but I really don't care. Sure it sucks that there won't be a CH next year and it sucks for a whole bunch of other reasons, but it's just not bothering me that much.

So when I read a 20+ page thread at OS and people are saying they are done with sports gaming or gaming in general, contact your senators, class action law suit, monopolies and best of all talks about financial futures for both companies I sit back and just go WTF?!

You know if my township tried to pass a referendum that would cause my kids to go across town to a new school instead of the one 2 blocks away, that is something I will get fired up about. But for jumping jimiies sake it's effin video games. I just can't comprehend how someone could be so wrapped up in this hobby that they would care this much about it.

[XXXIV]

I just can't comprehend how someone could be so wrapped up in this hobby that they would care this much about it.

Hear ya loud and clear and to a great degree I do agree

but ya have to remember that this is a video game board

Ill complain about schools on the school board forum

[Inuyasha]

I agree with the guy who said gaming has gone down on my lists of things to do. even if 2k was around and made nfl2k with the real teams, I still would not be playing that game like I would play games say 5 years ago.

[Danimal]

I just can't comprehend how someone could be so wrapped up in this hobby that they would care this much about it.

Hear ya loud and clear and to a great degree I do agree

but ya have to remember that this is a video game board

Ill complain about schools on the school board forum

Yeah i should have made it clear i wasn't talking about anyone on this forum, more so the OS people.

[Rodster]

EA looking to buy Ubisoft as well.

http://www.psxextreme.com/ps3-news/2652.html

Credit goes to GameCyte for uncovering this little marvel. It looks like proposing a buyout to Take-Two wasn't enough for Electronic Arts, as we have reason to believe that EA is also interested in buying out Ubisoft. What we reason do we have? Remember that website EA put up (EATake2.com) detailing why it is in Take-Two's best interests to sell? Well, they've also registered a website for Ubisoft, called EAUbisoft.com.

[XXXIV]

EA looking to buy Ubisoft as well.

http://www.psxextreme.com/ps3-news/2652.html

Credit goes to GameCyte for uncovering this little marvel. It looks like proposing a buyout to Take-Two wasn't enough for Electronic Arts, as we have reason to believe that EA is also interested in buying out Ubisoft. What we reason do we have? Remember that website EA put up (EATake2.com) detailing why it is in Take-Two's best interests to sell? Well, they've also registered a website for Ubisoft, called EAUbisoft.com.

Cue up the Death star music...