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http://biz.gamedaily.com/features.asp?article_id=8603#8603
Just days after reports surfaced claiming that the NBA had rejected a bid from Electronic Arts for exclusive licensing, EA is now claiming that they never did make any such bid and they don't know where the rumor started. More within...
It appeared yesterday that publishing giant Electronic Arts' win streak was snapped when the National Basketball Association (NBA) rejected an offer that would give EA full control of the NBA license. However, a report from videogame website IGN claims that EA never approached the NBA, though there are rumors that both sides had in fact met to discuss a deal.
Unstoppable force?
EA has been on an offensive tear as of late. The impressive run began earlier in the year when it purchased Criterion Studios. The multi-million-dollar deal not only gave the company the right to publish games made by the developer (including the critically acclaimed Burnout 3), but also control of RenderWare, the popular software tool used to create many of the industry's games including Midway's NBA Ballers and Sega's Sonic Heroes. Criterion's RenderWare website, Renderware.com, says that "There are over 500 current generation RenderWare games in development or published world-wide" and "Today 1 in 4 console titles in pre-production or development is using RenderWare technology." For EA, this means it can extend its hand much further into the games industry, primarily into the offices of some of its fiercest competitors.
[ "...the NBA may be biding its time and waiting to see whether the deal with the NFL will be profitable—a deal that [NBA's head of global merchandising] LaRocca called 'significant.'" ]
The acquisition of Criterion was surprising, but not nearly as unexpected as what EA did last week. In a move that may forever change the industry, the company announced it had entered into an exclusive five-year deal with the National Football League that grants the publisher full control of the NFL license. This includes its players and arenas, leaving developers of other popular football titles, such as Sega and Visual Concepts, best known for their ESPN NFL 2K series, at a loss.
The news sent shockwaves that reverberated across the industry and the homes of gamers, especially those who like having variety or simply prefer the football games published by EA's competitors. However, the company was far from finished. Earlier this week EA feasted on and consumed nearly 20% of fellow publisher Ubisoft, a move that was met with mixed reactions. An employee described the purchase as "hostile," explaining that EA may be gearing up to purchase the entire company, a move that some analysts feel is inevitable.
EA's impressive deals may turn out to be extremely profitable for the billion dollar company, so this is why the NBA's rejection of a supposed offer came as such a surprise. The NBA has assured other publishers that release basketball games carrying the license not to worry, but, since this is business, EA could always come back with a better deal, an offer the NBA simply wouldn't refuse.
But was a deal ever in place?
It's difficult to tell. The New York Post recently reported that the NBA's head of global merchandising, Sal LaRocca, said, "Talks with one group are in the preliminary stages." When GameDAILY BIZ contacted EA concerning the source of the rumor, we were told by a representative that, "There are so many rumors floating around out there, we couldn't possibly source them all."
However, it's entirely possible that EA is purposely keeping things under wraps in order to keep its stock from dropping as well as to preserve its seemingly unstoppable image. The NBA's refusal to buy into such an agreement could've possibly bruised the company's ego, though if both sides were talking, the NBA may be biding its time and waiting to see whether the deal with the NFL will be profitable—a deal that LaRocca called "significant."
While the Madden NFL Football series has been a dominating force in the past, the NBA may have more to lose if it hands over its license to EA. The company's NBA Live series hasn't been as successful as the Madden games, primarily because of the stiff competition from Sega's ESPN NBA 2K franchise.
The benefit of the doubt
Rumors of the EA/NBA meeting may have spawned from panic among gamers who felt that because EA has apparently stamped out the ESPN NFL 2K series, it would move onto basketball next, its aim being to strong arm Sega out of the sports genre. With no evidence supporting the claim that a deal was presented and in fact rejected, everything must be taken as hearsay.
GameDAILY BIZ contacted the NBA, but representatives were unavailable for comment as of press time.
What are your thoughts?
Just days after reports surfaced claiming that the NBA had rejected a bid from Electronic Arts for exclusive licensing, EA is now claiming that they never did make any such bid and they don't know where the rumor started. More within...
It appeared yesterday that publishing giant Electronic Arts' win streak was snapped when the National Basketball Association (NBA) rejected an offer that would give EA full control of the NBA license. However, a report from videogame website IGN claims that EA never approached the NBA, though there are rumors that both sides had in fact met to discuss a deal.
Unstoppable force?
EA has been on an offensive tear as of late. The impressive run began earlier in the year when it purchased Criterion Studios. The multi-million-dollar deal not only gave the company the right to publish games made by the developer (including the critically acclaimed Burnout 3), but also control of RenderWare, the popular software tool used to create many of the industry's games including Midway's NBA Ballers and Sega's Sonic Heroes. Criterion's RenderWare website, Renderware.com, says that "There are over 500 current generation RenderWare games in development or published world-wide" and "Today 1 in 4 console titles in pre-production or development is using RenderWare technology." For EA, this means it can extend its hand much further into the games industry, primarily into the offices of some of its fiercest competitors.
[ "...the NBA may be biding its time and waiting to see whether the deal with the NFL will be profitable—a deal that [NBA's head of global merchandising] LaRocca called 'significant.'" ]
The acquisition of Criterion was surprising, but not nearly as unexpected as what EA did last week. In a move that may forever change the industry, the company announced it had entered into an exclusive five-year deal with the National Football League that grants the publisher full control of the NFL license. This includes its players and arenas, leaving developers of other popular football titles, such as Sega and Visual Concepts, best known for their ESPN NFL 2K series, at a loss.
The news sent shockwaves that reverberated across the industry and the homes of gamers, especially those who like having variety or simply prefer the football games published by EA's competitors. However, the company was far from finished. Earlier this week EA feasted on and consumed nearly 20% of fellow publisher Ubisoft, a move that was met with mixed reactions. An employee described the purchase as "hostile," explaining that EA may be gearing up to purchase the entire company, a move that some analysts feel is inevitable.
EA's impressive deals may turn out to be extremely profitable for the billion dollar company, so this is why the NBA's rejection of a supposed offer came as such a surprise. The NBA has assured other publishers that release basketball games carrying the license not to worry, but, since this is business, EA could always come back with a better deal, an offer the NBA simply wouldn't refuse.
But was a deal ever in place?
It's difficult to tell. The New York Post recently reported that the NBA's head of global merchandising, Sal LaRocca, said, "Talks with one group are in the preliminary stages." When GameDAILY BIZ contacted EA concerning the source of the rumor, we were told by a representative that, "There are so many rumors floating around out there, we couldn't possibly source them all."
However, it's entirely possible that EA is purposely keeping things under wraps in order to keep its stock from dropping as well as to preserve its seemingly unstoppable image. The NBA's refusal to buy into such an agreement could've possibly bruised the company's ego, though if both sides were talking, the NBA may be biding its time and waiting to see whether the deal with the NFL will be profitable—a deal that LaRocca called "significant."
While the Madden NFL Football series has been a dominating force in the past, the NBA may have more to lose if it hands over its license to EA. The company's NBA Live series hasn't been as successful as the Madden games, primarily because of the stiff competition from Sega's ESPN NBA 2K franchise.
The benefit of the doubt
Rumors of the EA/NBA meeting may have spawned from panic among gamers who felt that because EA has apparently stamped out the ESPN NFL 2K series, it would move onto basketball next, its aim being to strong arm Sega out of the sports genre. With no evidence supporting the claim that a deal was presented and in fact rejected, everything must be taken as hearsay.
GameDAILY BIZ contacted the NBA, but representatives were unavailable for comment as of press time.
What are your thoughts?