Gamers and Econ Professor Sue EA Sports

by Fred
Posted July 16th, 2009 at 5:17 pm

drevil

How many times have we seen this one? A couple of gamers get together and try to sue one of the largest video game makers in the world over a sports game?  Usually it’s some die hard NFL 2K fan coming up with some whacky scheme to sue EA Sports in hopes of them losing their exclusive license with the NFL. This time around, we aren’t just talking about gamers. We are also throwing in an Economics professor the University of Michigan. Gamepolitics.com has the story:

A University of Michigan economics professor estimates that Electronic Arts collectively overcharged Madden buyers between $701 million and $926 million during the years 2006 through 2009.

Dr. Jeffrey MacKie-Mason made his claim in a document filed last week with the U.S. District Court in San Francisco. Mackie-Mason was brought into the case as an expert witness by attorneys representing Geoffrey Pecover and Jeffrey Lawrence. The pair of gamers are named plaintiffs in a class-action suit alleging that EA used its exclusive licensing deal with the NFL to eliminate Take Two Interactive’s competing NFL 2K series. The suit charges that EA then exploited the resulting competitive vacuum to dramatically raise the retail price of Madden.

I guess my question is how did EA overcharge for Madden? Was it the fact that games now cost $60 instead of $50? Did the professor not see that most new games coming out on PS3 and XBOX 360 cost $60? Madden is on par with most new titles coming out, whether they have exclusive licenses or not.

If he believes $60 is overcharging, then aren’t all game companies overcharging?  Will THQ now be sued over an exclusive license with the UFC and charging $60 for UFC Undisputed? The only way I can see this case holds water, well I really can’t see it, is if the professor and gamers think Madden is trash and shouldn’t cost $60. In that case, well then yes EA is probably overcharging. And in the end that is opinion. I’m not sure how you can really prove this in court, but then again I didn’t go to law school. Analyst Michael Pachter seems to agree. In an email sent to Gamepolitics from Pachter himself, he calls the professor “a fool”.

What kind of fool is this U of Michigan economics professor? …Madden (according to NPD) sold 23 million units in 2006 – 2009, not the 30 million that Dr. MacKie-Mason claims… The total retail sales were $1.034 billion, meaning that EA’s cut was around $800 million (retail margin is 20%).  How in the world does [MacKie-Mason] conclude that EA overcharged by more than they generated?

Obviously the plaintiffs haven’t played NBA 09: The Life. If they did, they would have sued Sony for even making that game let alone charging for it.

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  • KRIS
    well im with u but DAMN!!!! i need me a football game maybe i'll just stick with 2k5 but i cant keep playing on those old ass rosters. idk i'll probably break and end up buying the potential turd anyway. im sorry buts its all we got. its really sad tho. are mopopolies even legal? how can they do this shit??
  • X2KSportsGodX
    EA is trash, all their crappy games are just polished turds for sports gamers who care not for the sport itself but for the flash, logos and players. It really sickening how gamers could support a company who has released nothing but dumb down sports titles since its inception. Just look at the Madden 10 videos, its is the same game as Madden 99 with upgraded graphics..The ice skating, no pocket, the robotic running, the turn on a dime momentum...its pathetic. Sheep see only the logos and the flash of the No Fun League and are just zombified....The only way EA can be stopped if people stop buying the crap for just one year....Its up to gamers to take a stand against this unethical hype machine....will you join me? I haven't bought an EA produced game since 1999...and never will again.

    APF2K8=The Greatest Football Sim to date...
    NFL 2K5=The greatest NFL licensed game to date....

    Stop the Maddeness!!!!
  • KRIS
    1/2 sacks, assist tackle stats, online leagues,deep player progression, they even got a stat for qb hurries, and next gen madden just recently got double tackles, the o-line and d-line interactions are amazing and run blocking is perfect, i could go on and on. im not sayin that madden 10 isnt gonna blow away 2k5 but i think its too late to just now be getting these things and a game 5 years old already had it. and maddens halftime and post game show looks like ass!!! and 2k5's is way better. all the new presentation work is stripped right from 2k5, from camara angles to sideline shots all copied. EA should just let the liscence thing go so we can have a choice and not just be forced to buy their shitty overrated game. o yea and they completely ripped the new ratings system from 2k5. u should do a real comparison of these two games and right up on it please i would love tp kno ur opinion.
  • KRIS
    screw the case and all that. i just wanna say madden has sucked ass for about 4 years. i went out and got 2k5(75 cents) and it is like at least three times better than madden 06(next gen)-09. its really kinda wierd. im not a ea basher by any means but i just wanted to see what all the hype was about and all those ppl are right. ea has screwed us royaly for the past 4-5 years(since ive been playin madden). madden is just getting features that 2k5 already had 5 YEARS AGO!
  • X2KSportsGodX
    You Morons, This lawsuit is legit. and all you blind sheep who continue to believe it was the NFL who decided to pawn off license think again.

    EA lobbied for the NFL exclusive starting in 2002 and common sense will tell you that why all of sudden EA had all the exclusives under their belt IN THE SAME YEAR?????????
    PGA
    NFL
    NCAA
    Arena
    FIFA
    Nascar
    They also approached the NBA several times!!
    When will you people realize EA is the villain here? They wanted a full monopoly in sports gaming and because of unethical gamers of this new generation of sports gamers they might succeed soon enough.
    EA knows Madden would be the NBA Live of today without the exclusive...2K/VC makes superior sports games period!!

    Good day kiddos..
  • This is more stupidity. Madden doesn't cost more than any other game on the market. Figures it would be a jerkhole from the University of Michigan who would file some garbage like this....
  • MATT
    DA BEARSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • patch
    Hey, what about Backyard Football? That game also has the NFL license. I wonder if they'll be sued next.
  • Headstomper
    Must suck being retarded and still live in Mommy's basement fellas. This is the stupidest lawsuit, dumbest argument and waste of time discussion. I thank fred for the news but really a lawsuit? If you guys hate Madden so much go play American Pro Football or whatever the fuck it was called or juice up on the Blitz the game...fuck those were fun huh? If someone wanted to make a football game and leave the names asnumbers..like NCAA Im sure they could..there's an audience out there to rename rosters...but guess what...we like name brand shit. So if NFL wants to make money by giving their franchise to EA...let them...we can wait for a CFL game to come out...lol (BTW that stands for Canadian football Leaugue not College Football for you retards)
  • TZS
    Hope they take EA for all they are worth
  • SwiFt4
    EA came into my house. Raped my children. And stole my $60.

    Yeah right. Let's sue apple for charging an extra 50% for their overpriced products.
  • then you can sue dell, hewlett, sony and every other computers out there
  • hahahahah last sentence mad funny
  • MadFan
    The bottom line is we all as gamers need to get on board and support this lawsuit as a consumer. There is no competition to force EA to advance the game, as it should. I will always buy it because I am a gamer and that is all that is out there football wise (hence the reason why EA exploits us the way they do), but by no means am I happy with how the progression of the development of these games. When EA has competition as they do in basketball your really see how inferior their gaming development really is.

    EA will always cover up their Develop flaws with added features, which do not enhance the game play but just spark the interest of you and me as gamers. We all see what happen to the College basketball when 2k pulled out because they did not want to get in a bidding war with EA. EA needs competition for there to be advancements in the sports gaming market. How would you enjoy your favorite shooter if all they did was change the story line, left everything else alone, and gave you a few new guns to use? You would not.

    While I think this lawsuit, won’t fly in court because the wording in the suit is wrong not the basis of the Idea. It will not fly in court only because video games (sports, shooter, RPG’s, etc.) lumped in together with in the videogame industry and EA is one player in it. Major loophole but it is what it is. Until they classify each type of game as its own industry will EA be touched on this issue (Not going to happen).

    No one really knows how we as gamers are affected by what EA is doing because to sports games because the people in the power to change do not play them. The Professor from Michigan is clueless on what the suit should be about and who should all be involved like a poster above stated the NFL need to be in the discussion as well.

    Bottom line for me if I am going to give a price increase for my next gen system at least let me get my monies worth. Remember guys and gals the next, next gen will be out soon with the advancement we have seen from PS2 to PS3 or XBOX to 360 are you really getting your monies worth from the EA sports games you are buying. TH question is are you going to stand for paying $80 dollars for a game because it’s coming.

    This is just my opinion I can rant on but I will stop here. :)
  • dabearsdabears54
    I believe the aspect of this debate that goes unmentioned far too often is the fact that the NFL strictly monitors the products it gives it name and/or license to and tests all of these with their own people. That being said, I feel this is the reason why EA has felt the pressure to put forth a good effort most recently. EA would not want to lose the most lucrative of all the exclusive licenses as the NFL is America's most popular league. With the premium the NFL puts on excellence, I am of the opinion that the NFL has put pressure on EA to produce a game worthy of the nation's most popular sport; hence the recent phenomenon of actively engaging the community and even listening to consumer feedback (what a novel idea). Now, I do not think that EA has done enough to produce a game worthy of the NFL, the most recent changes are an attempt to step the bar up. It will be interesting to see how EA moves forward with Madden the year after this one; if it will continue to be an attempt to continue on the path toward making the highest quality product or if EA will slip back into the who cares we will sell games anyway mode...
  • GGGGbrown
    Don't Know whos right or wrong , but any time the heat is put on EA to be accountable ILOVE IT !!!DOUBT if this will work though
  • BrownsBoy315
    The first thing they told me at Penn State orientation was that University of Michigan is fool of dips**ts. Something I already knew growing up with a Ohio State father haha.
  • Did Penn State... by any chance ... teach you that what you REALLY mean to say is that they are "FULL" of dipshits? I mean really.. hopefully the state of Pennsylvania taught you that in the 2nd grade.
  • GO PENN STATE!!!!!!!!!
  • Guest
    woooooo (not at the case)
  • i love Madden so much I would pay 100$ without even thinking about it for madden. I can't wait for 10 going to be GREAT!!!!!!!!!!!!!111111!!!!!!!!!!!1111111111!!!!!!!!!!!!!!1111!!!!!!
  • I paid $80 for Madden '09. But mainly because it came packaged with Head Coach '09... which to us hard-core franchise guys... was really worth it. Good job on HC'09. Hopefully there will be a sequel.
  • I did the same thing. I also hope they make a new head coach and just fix some of the problems tho, there was a lot mostly the AI on gameday.
  • I'm so with you there man. :):):)
  • LOL @ Tickle my testicles
  • Dark Match Jones
    Lets see...a BS exclusive rights deal...eliminating competition...

    ...producing defective sports games left and right on a yearly basis...

    ...charging a BS price for said defective game (I'd be alright with the price, if the Effin games came out working as advertised)...

    But hey, what are you going to do. This lawsuit will fall flat on it's face (although, if McDonalds ended up paying some dumb broad for spilling hot coffee on herself...I guess anyone CAN win a lawsuit)...

    But, I'm pretty sure...this one is a lost cause. Trust me though, I'm pulling for SOMEONE to get a victory over EA. It'd tickle my testicles (and that's a medical term, so if someone censores this...Eff off)...to see EA go down...
  • Don't pay for the games then if you don't like them. Since when was eliminating the competition a crime?
  • Dark Match Jones
    It's not a crime, nor did I state it was a crime. What's a crime is, that they're capable of becoming lazy with their bullshiz (with a z) games, just because they have the market cornered. Why bust your ass and make a game that's complete, GLITCH FREE game...when there's no one competing with you to make you better. Competition makes products better. When there's someone competing with you, you have a reason to excel and make a good product. At this point, since there's no other game in town when it comes to the NFL, they could squeeze a big pile of shiz (with a z) into the case, and sell it to us...and people would still buy it because it's the only NFL labeled turd you can buy.

    That, overall...is my point. That they are allowed to continue to sell this little bundle of crappiness each year, and see no consequences for it.
  • BTW... I would be TOTALLY happy with a fully customizable non-NFL game being released. I would buy it full-priced on day one. I don't give a flying fuck about the NFL because.. as I've said, I'm more pissed off at the NFL than am at EA sports.
  • Dude... I am still waiting for the game that could immerse me nearly as much as NFL 2k5. But the simple fact of the matter is... this is the NFL's fault... NOT EA's. EA had the cash to spend for the BULLSHIT NFL exclusive licence. But it was the NFL who offered it up for sale to begin with.____No one is looking for NFL 2k6 more than I am, but if you've paid any attention at all, the EA guys have been doing a SHITLOAD to connect with the fans to bring them what they are asking for. I have never... in the history of my sports gaming (some 27 years or so) ever bought a sports game in successive years. I bought Madden '09. The first NFL game since NFL 2k5. And I am seriously considering buying Madden 2010.____Reiterated... this is the NFL's fault... not EA's.
  • Billie
    GO FRED FIGLIO
  • mitch carmichael2
    Great Article Fred hope u write many articles on PastaPadre and u can add Pastapadre & FredFiglio.
  • NFL 2K5 was $20 when it came out. A later game, All Pro Football 2K8 was $40 when it came out. So 2K overcharged on that one.
  • Billie
    Madden 10 SGOY. Madden 10 Best Game of the Year as well. Madden 10 Best Sports Game EVER CREATED. I AM SO PUMPED I CAN NOT WAIT LIKE ALL OTHER FOOTBALL FANS. JULY23 AND AUGUST 8TH
  • Big Mike
    Maybe you should reserve judgement until you've actually PLAYED the game? EA has talked up the last 4 versions of Madden on current gen, only to release bug-ridden, unrealistic pieces of crap every time.
  • Simon
    I am a fan of madden and 2k cus they presented different outlooks to a game, and it allowed me to play with my brother in madden and play my dad in 2k. It was fun for all of us.
  • Mykal94
    I know. I don't think it will hold up, but I do see their point, however untrue or invalid it may be. Their trying to say that prior to the exclusive license the game was $40 or $50 and now EA raised prices because of the license and no competition, but I agree that their prices are in line with all other games at this point and they raised their prices along with every other company in the biz.
  • Great write-up Fred I wonder how many other nuts will come out the wood work to sue any and everybody over anything small. Guy sounds almost like the guy who is always harassing Take-Two and Rockstar over the GTA series.
  • Roy
    If he looks to the last pricing of a NON EA NFL FOOTBALL GAME, NFL 2K5, for $20, which i assume would have continued in some manner into the current gen cycle, then there is something to it. But with other 2K games @ $60 i jus dunno. When you have no competition, its new to have "real broadcast presentation", and "referees", and "chain gang" and more than 2 player tackles. All of this comes on the 5th Madden for the 360, how is it new if it always existed, or another game had them long ago when there was competition for the BEST NFL GAME, not the ONLY NFL GAME. :(
  • This case will never make it to court. No one is forced to purchase Madden. End of story...

    EA is responsible to their shareholders. EA's goal is to maximize revenue. It's called capitalism.
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