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.

Tags:

http://intensedebate.com/people/darkheath darkheath

While I would love to see the abolition of the exclusive deal, this case seems aimed at the wrong company. They need to be suing the NFL. The NFL also has exclusive deals with DirectTV, Sirius radio and certain clothing companies (those deals suck, too). This isn't EA's fault, they just had the deeper pockets.

I say this even though I do love me some 2K football. :'-(

http://intensedebate.com/people/okafor43 okafor43

Well said, while they are at it sue the ncaa and the sam keller for possibly screwing the rosters of this years ncaa football. This is awful, what happened to competitiveness. for every mcdonalds you see a wendy's or burger king across the street. but in video game football you see nothing but ea sports.

http://intensedebate.com/people/darkheath darkheath

While I would love to see the abolition of the exclusive deal, this case seems aimed at the wrong company. They need to be suing the NFL. The NFL also has exclusive deals with DirectTV, Sirius radio and certain clothing companies (those deals suck, too). This isn't EA's fault, they just had the deeper pockets.

I say this even though I do love me some 2K football. :'-(

http://intensedebate.com/people/okafor43 okafor43

Well said, while they are at it sue the ncaa and the sam keller for possibly screwing the rosters of this years ncaa football. This is awful, what happened to competitiveness. for every mcdonalds you see a wendy's or burger king across the street. but in video game football you see nothing but ea sports.

http://intensedebate.com/people/darkheath darkheath

Ahhh sweet. I beat the "FIRST" morons..
http://www.intensedebate.com/people/darkheath darkheath

Ahhh sweet. I beat the "FIRST" morons.
http://intensedebate.com/people/darkheath darkheath

Ahhh sweet. I beat the "FIRST" morons..
http://www.intensedebate.com/people/darkheath darkheath

Ahhh sweet. I beat the "FIRST" morons.
Mr. Professional

I agree with you Pasta, no matter what argument they take, it's pretty much a lost cause. I think what the plaintiffs and professor are saying is that based on the fact that EA has the NFL license exclusively and is not producing games that meet the prosecutions/gamers standards, EA should not have the right to charge full price for the game.
Yeah, it sounds pretty weak when as the defense you can immediately start by saying you are charging at the market price (all other games are priced at $60)…whatever
Mr. Professional

I agree with you Pasta, no matter what argument they take, it's pretty much a lost cause. I think what the plaintiffs and professor are saying is that based on the fact that EA has the NFL license exclusively and is not producing games that meet the prosecutions/gamers standards, EA should not have the right to charge full price for the game.
Yeah, it sounds pretty weak when as the defense you can immediately start by saying you are charging at the market price (all other games are priced at $60)…whatever
http://intensedebate.com/people/fredsmooth21 fredsmooth21

Just an FYI. I wrote that, not pasta =)
http://intensedebate.com/people/fredsmooth21 fredsmooth21

Just an FYI. I wrote that, not pasta =)
Mr. Professional

heh, sorry Fred…so used to Pasta when it comes to the football news I guess
Mr. Professional

heh, sorry Fred…so used to Pasta when it comes to the football news I guess
Mykal94

I think he means by eliminating the competition of the 2k series they were able to increase prices without a worry of customers purchasing another NFL game. He is saying that EA has effectively created a monopoly on NFL video games by not only having an exclusive liscense (which I don't believe violates the anti-trust act), but using that license to increase price without competition (which may, but I am not sure).
Mykal94

I think he means by eliminating the competition of the 2k series they were able to increase prices without a worry of customers purchasing another NFL game. He is saying that EA has effectively created a monopoly on NFL video games by not only having an exclusive liscense (which I don't believe violates the anti-trust act), but using that license to increase price without competition (which may, but I am not sure).
http://intensedebate.com/people/fredsmooth21 fredsmooth21

I could see that if all others game out right now were cheaper. But Madden's price is on par with the rest of the games that come out. Even games that EA doesn't make.
http://intensedebate.com/people/fredsmooth21 fredsmooth21

I could see that if all others game out right now were cheaper. But Madden's price is on par with the rest of the games that come out. Even games that EA doesn't make.
Hawkeye4077

Yeah, it doesn't make sense to say that EA is overcharging. EA is guilty of many things but price gouging is not one of them. Sure, I like many feel ripped off every year after I buy Madden since 05, but I choose to buy it and as you said, they don't sell it any higher than the other console games. Law suits such as these aren't all for not in the long run though. I think that EA finally feels the heat because of stuff like this and getting killed on forums.

They seem to have made a really strong effort on Madden 2010 but I doubt it was out of benevolence to the fans. If not for a brilliant marketing campaign they put on for Madden 10 to create so much buzz (and arguably tanking NCAA on purpose), Madden would have had a weaker sales total this year. Madden is a machine and I doubt it would ever tank, but they would have felt a financial hit.
Hawkeye4077

Yeah, it doesn't make sense to say that EA is overcharging. EA is guilty of many things but price gouging is not one of them. Sure, I like many feel ripped off every year after I buy Madden since 05, but I choose to buy it and as you said, they don't sell it any higher than the other console games. Law suits such as these aren't all for not in the long run though. I think that EA finally feels the heat because of stuff like this and getting killed on forums.

They seem to have made a really strong effort on Madden 2010 but I doubt it was out of benevolence to the fans. If not for a brilliant marketing campaign they put on for Madden 10 to create so much buzz (and arguably tanking NCAA on purpose), Madden would have had a weaker sales total this year. Madden is a machine and I doubt it would ever tank, but they would have felt a financial hit.
http://intensedebate.com/people/darkheath darkheath

I have a feeling this "economics professor" doesn't really understand the whole deal that went down. EA has done nothing wrong. They just had the highest bid when the product (exclusive license) was offered. Anyone who's ever bought anything off of eBay will understand that.

And yes, they are also charging $60… just like everybody else out there. Seems this is just a waste of the court's time (and the City of San Francisco's money).
http://intensedebate.com/people/darkheath darkheath

I have a feeling this "economics professor" doesn't really understand the whole deal that went down. EA has done nothing wrong. They just had the highest bid when the product (exclusive license) was offered. Anyone who's ever bought anything off of eBay will understand that.

And yes, they are also charging $60… just like everybody else out there. Seems this is just a waste of the court's time (and the City of San Francisco's money).
http://www.intensedebate.com/people/darkheath darkheath

I have a feeling this "economics professor" doesn't really understand the whole deal that went down. EA has done nothing wrong. They just had the highest bid when the product (ie: exclusive license) was offered. Anyone who's ever bought anything off of eBay will understand that. And yes, they are also charging $60… just like everybody else out there. Seems this is just a waste of the court's time (and the City of San Francisco's money).
http://www.intensedebate.com/people/darkheath darkheath

I have a feeling this "economics professor" doesn't really understand the whole deal that went down. EA has done nothing wrong. They just had the highest bid when the product (ie: exclusive license) was offered. Anyone who's ever bought anything off of eBay will understand that.

And yes, they are also charging $60… just like everybody else out there. Seems this is just a waste of the court's time (and the City of San Francisco's money).
http://www.GameRosters.com/ Brian Kaldenberg

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.
http://www.GameRosters.com Brian Kaldenberg

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.
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.
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.
http://intensedebate.com/people/Dre2778 Dre2778

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.
http://intensedebate.com/people/Dre2778 Dre2778

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.
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.
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.
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.
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.
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.

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.

http://intensedebate.com/people/Anthony_S1 Anthony_S1

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.
http://intensedebate.com/people/Anthony_S1 Anthony_S1

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

GO FRED FIGLIO
mitch carmichael2

Great Article Fred hope u write many articles on PastaPadre and u can add Pastapadre & FredFiglio.
mitch carmichael2

Great Article Fred hope u write many articles on PastaPadre and u can add Pastapadre & FredFiglio.
Billie

GO FRED FIGLIO
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…

http://www.GameRosters.com/ Brian Kaldenberg

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.

http://intensedebate.com/people/darkheath darkheath

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.
http://intensedebate.com/people/darkheath darkheath

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.

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…

http://www.GameRosters.com Brian Kaldenberg

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.

http://intensedebate.com/people/darkheath darkheath

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.
http://intensedebate.com/people/darkheath darkheath

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.

http://intensedebate.com/people/fredsmooth21 Fred

LOL @ Tickle my testicles
http://intensedebate.com/people/fredsmooth21 Fred

LOL @ Tickle my testicles
http://intensedebate.com/people/Halosniper52 Halosniper52

I'm so with you there man. :):)
http://intensedebate.com/people/Halosniper52 Halosniper52

I'm so with you there man. :):)
http://intensedebate.com/people/Halosniper52 Halosniper52

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!!!!!!

http://intensedebate.com/people/darkheath darkheath

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.

http://intensedebate.com/people/Halosniper52 Halosniper52

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.

http://intensedebate.com/people/Halosniper52 Halosniper52

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!!!!!!

http://intensedebate.com/people/darkheath darkheath

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.

http://intensedebate.com/people/Halosniper52 Halosniper52

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.

Guest

woooooo (not at the case)
http://intensedebate.com/people/TXlongHORNS91 Ty

woooooo (not at the case)