Jul 17 - Madden overcharged gamers by $925 million

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 8 years ago '06        #1
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servesurite 42 heat pts42
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Jul 17 - Madden overcharged gamers by $925 million
 

 
Are you a fan of EA's epic Madden series? You -- and gamers like you -- could have been bilked out of almost a billion dollars, according to a Michigan professor of economics.

Jeffrey MacKie-Mason's estimate came in a lengthy declaration filed in support of the plaintiffs in a class-action lawsuit against publisher EA. The suit alleges that the world's second-largest publisher used its exclusive deal with the NFL to eradicate competing football video games -- notably Take Two's NFL 2K series -- and then hiked Madden prices to their current $60.

Industry analysts have been critical of the scale of MacKie-Mason's estimate, and the professor himself admitted in the filing that it was a "simplistic exercise" -- but also notes that under Californian anti-trust law, any damages a.ssessed would be trebled. In other words, a loss in this case could prove expensive for EA.

How likely is that? Your guess is as good as ours, but there's more to this f!ght than video games. In 2001, a comparable situation arose when the NFL signed a ten-year exclusive deal with Reebok to produce hats carrying team branding. As a result, a competing headwear manufacturer shut out by the deal sued both the NFL and Reebok under anti-trust laws. The NFL won, but the f!ght's not over: the case could well be on its way to the Supreme Court this year.
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 provide this information for the limited purpose of allowing the Court to a.ssess in rough terms the burden on Electronic Arts in relation to the magnitude of potential damages... Under California's antitrust statute, it is my understanding that these damages would be trebled.

MacKie-Mason arrived at the eye-popping figures using an estimated overcharge percentage that ranged from 50% to 66% for the 30.04 million units of Madden sold during the 2006-2009. He writes:

Based on Mackie-Mason's estimate, attorneys for the plaintiffs have requested additional data for Madden sales going back to 2001. In a response, attorneys for EA agreed to supply as many of the requested documents as they could locate, but were unsparing in their a.ssessment of Mackie-Mason's analysis.

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82 comments for "Jul 17 - Madden overcharged gamers by $925 million"

 8 years ago '05        #2
LVuittonDon4EVA 8 heat pts
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Ya know what's sad...I honestly do not give a rat's a.ss about this.

Just bring me Madden '10.
 8 years ago '04        #3
Scoop24 15 heat pts15
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 LVuittonDon4EVA said:
Ya know what's sad...I honestly do not give a rat's a.ss about this.

Just bring me Madden '10.
:iagree:
 8 years ago '04        #4
octane 
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People are stupid anyway. If they charged $100 for Madden people would be lined up two days before it went on sale. They should charge more. f*** it. The Rich get richer.
 8 years ago '04        #5
young_fletch 24 heat pts24
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dont most games for the ps3 cost 60???
 07-17-2009, 10:09 AM         #6
Mcmasterlock 
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I hate all those exclusive deal the NFL has with companies like,Directv, EA sports and reebox
 8 years ago '07        #7
Bruce Leeroy 
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 LVuittonDon4EVA said:
Ya know what's sad...I honestly do not give a rat's a.ss about this.

Just bring me Madden '10.
 8 years ago '09        #8
Spiffy 34 heat pts34
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I would pay 60 80 100 bux. Cant wait for madden 10

 07-17-2009, 11:12 AM         #9
YoungGQ 
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<<still has a ps2 and will probably cop madden on it......f*** 60 bucks
 07-17-2009, 11:20 AM         #10
redacted 
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File a lawsuit against the NFL for signing with that stupid exclusive deal. I don't give damn about anything EA Sports does, I'm waiting for the next rom hack for Tecmo Super Bowl.
 8 years ago '04        #11
Point da Champ 
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 ThaReapa420 said:
LOL! EA's games cost the same as everyone else's games. You don't think if bungie could exclusively create and distribute FPS games that they'd do it. EA just used the system to increase their profits. That's not overcharging s***. People will do anything for a little recognition.

That being said I liked NFL 2K5 (I think that's the one with Chris Berman and them on it) more than Madden 2005. And EA saw that the 2K series was gonna f*** up they profits and they did something about it. Sounds like good business sense to me.


:iagree:
 07-17-2009, 11:33 AM         #12
DJatar 
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 ThaReapa420 said:
LOL! EA's games cost the same as everyone else's games. You don't think if bungie could exclusively create and distribute FPS games that they'd do it. EA just used the system to increase their profits. That's not overcharging s***. People will do anything for a little recognition.

That being said I liked NFL 2K5 (I think that's the one with Chris Berman and them on it) more than Madden 2005. And EA saw that the 2K series was gonna f*** up they profits and they did something about it. Sounds like good business sense to me.
sports games are typically cheaper since they come out EVERY YEAR like clock work thats why its bulls*** i wouldnt mind dropping 60 for madden every TWO years or some s***.. whatever not like its gonna stop me from buying Madden 10
 8 years ago '07        #13
Pistol Peter 33 heat pts33
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 ThaReapa420 said:
And EA saw that the 2K series was gonna f*** up they profits and they did something about it. Sounds like good business sense to me.
the nfl actually proposed the deal not ea
 07-17-2009, 11:42 AM         #14
Hurricane24 
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what sucks about this is that the 2k series was actually better
 8 years ago '04        #15
#RAPTORSWON 228 heat pts228
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$22,257 | Props total: 2708 2708
Thats why a $600 computer with a good graphics card is the best investment... Download games for free son! f*** EM!
 8 years ago '04        #16
jumpman2304 25 heat pts25
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so i have the red lights of death... if i send this to xbox without warrenty will they still fix this for free?? .

i def love madden im not missing out this year, really dont wanna buy another one though
 8 years ago '09        #17
Spiffy 34 heat pts34
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^^ya they should

@ red ring of death, HA HA

I had that s*** happen to me too
 8 years ago '04        #18
MosDefinition 19 heat pts19
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 jumpman2304 said:
so i have the red lights of death... if i send this to xbox without warrenty will they still fix this for free?? .

i def love madden im not missing out this year, really dont wanna buy another one though
they extended the warranty for the rrod

i didnt even have a warranty with microsoft i had it with gamestop and they fixed mine
 8 years ago '06        #19
Bk's Finest 
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I never liked madden, 2k was always better. I rather have a variety to chose from then one game that corners the market.
 8 years ago '04        #20
Stack_Bundles 2 heat pts
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The Only Game I Buy Year After Year On Release Day....... Cant Wait For Madden 10
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