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EA Enters into Exclusive Agreements with NFL and PLAYERS INC


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REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 13, 2004--Electronic Arts (NASDAQ:ERTS - News) today announced exclusive licensing relationships with the National Football League and PLAYERS INC to develop, publish and distribute interactive football games. These five-year agreements -- which EA negotiated separately -- give EA the exclusive rights to the NFL teams, stadiums and players for use in its football videogames. Both agreements also include exclusive rights for console online features. Financial terms of the agreements were not disclosed.

For the first time, all aspects of the interactive experience -- including console-based fantasy football features and handheld game devices -- will be fully integrated with one EA game. This also provides the opportunity for new games and for EA to access both NFL Films and the NFL Network for use in the games.

"We are pleased to expand our agreement with Electronic Arts, the leading video game manufacturer and a valued NFL partner," said NFL Commissioner Paul Tagliabue. "We look forward to working with EA to continue to enhance the quality of NFL video games that our fans have enjoyed for many years."

"For more than a decade, EA has produced the most authentic football product for fans of the game," said PLAYERS INC Chairman Gene Upshaw. "This exclusive relationship will maximize the value of NFL players through EA's continued commitment to bring fans closer to the game."

"We are excited about the opportunity to further enhance our relationship with the NFL and PLAYERS INC," said Larry Probst, Chairman and CEO of Electronic Arts. "The five-year agreements will usher NFL fans through the console technology transition with new ideas and innovative game play experiences."

Both agreements are exclusive for action simulation, arcade-style and manager games on the PC, handheld game devices and consoles -- including console online features. The agreements do not include exclusive rights to other types of games or games accessible from the Internet or wireless devices, including cellular phones.

Madden NFL Football from the EA SPORTS brand has sold more than 42 million copies over the franchise's 15 year history. Madden NFL 2005, the most complete football game ever, is available for the PlayStation®2 computer entertainment system, Xbox® videogame system from Microsoft, Nintendo GameCube, Game Boy® Advance, the PlayStation® console and PC. NFL STREET 2 for the PlayStation 2 console, Xbox system and Nintendo GameCube will be on store shelves by December 26, 2004. Both games were developed by EA Tiburon, and rated "E" (Everyone) by the ESRB. The games official websites are www.madden2005.com and www.nflstreet2.com.

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, EA posted revenues of $2.96 billion for fiscal 2004. The company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers and the Internet. In 2003, EA had 27 titles that sold more than one million copies. Electronic Arts markets its products under three brand names: EA SPORTS, EA GAMES and EA SPORTS BIG. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.

About PLAYERS INC

Formed in 1994, PLAYERS INC is the for-profit licensing and marketing subsidiary of the NFL Players Association. Representing more than 1,800 active and 3,500 retired NFL players, PLAYERS INC "takes the helmets off" the players and markets them as personalities as well as professional athletes. PLAYERS INC activities include retail licensing, corporate sponsorships, special events, radio and television projects, publishing and other promotional programs. PLAYERS INC schedules more than 2,500 NFL player appearances each year. For more information, please visit www.nflplayers.com.

Electronic Arts, EA, EA SPORTS, EA GAMES, EA SPORTS BIG and John Madden Football are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. All NFL-related trademarks are trademarks of the National Football League. Officially licensed product of PLAYERS INC. PlayStation is a registered trademark of Sony Computer Entertainment Inc. Microsoft and Xbox are either trademarks or registered trademarks of Microsoft Corporation in the U.S. and/or other countries and are used under license from Microsoft. Nintendo GameCube and Game Boy Advance are trademarks of Nintendo.

--------------------------------------------------------------------------------

Contact:

Electronic Arts

Trudy Muller, 650-628-7323

tmuller@ea.com

or

NFL

Brian McCarthy, 212-450-2069

McCarthyB@NFL.com

or

PLAYERS INC

Christy Moran, 202-496-2885

christy.moran@nflplayers.com

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Does this mean no more NFL 2k6?

This really must have cost EA a bundle. Sort of strange, considering that the NFL and the NFLPA have always taken money from anybody willing to give it. How does this help anybody but EA?

I played Madden 04 last week. I just can't figure out how anybody can like that game over the 2k series. I know, I'm in the minority.

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Originally posted by KDawg

Looks like ESPN is done for, for shame :D

I don't understand the smilie, even fans of madden should be disappointed, what reason does EA have to put the best product possible on the field now that there is absolutely no competition in the nfl market. If their product stinks, oh well too bad, take it or leave it.

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Well I guess Sega knocking on ESPNs door has come back to bite it in the ass, eh? This reminds me of when Microsoft bought out Rare Inc. I was SO PISSED that day. I was devestated, yo. Stuff like this happens all the time. Its a win win situation for the consumer because it forces the competition to be creative and unique to keep up with the revolutionary premium features that strive to be a standard.

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It's not a win win situation because regardless of how good a game the competition makes, it won't be the same with made up players even if they have the stats of the real players on the teams. It's a win lose situation, win for ea, lose for everyone else.

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This is a huge blow for Sega. They were just starting to compete with EA by selling games for $19.99. Now they are just going to lose the new gamers they got this year.

Hopefully EA does not become complacent after this. I love Madden, but I would hate to see the quality of the game decrease because of this deal.

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Originally posted by pr11fan

It's not a win win situation because regardless of how good a game the competition makes, it won't be the same with made up players even if they have the stats of the real players on the teams. It's a win lose situation, win for ea, lose for everyone else.

Well.....theres always a possibiliy of an NES Playaction Football type of game:laugh:

But seriously, one can't help but expect a lawsuit even though for example if you had two dudes mowing your lawn for payment, you DO have the right to make a deal with one of them to do your lawn exclusively. But I do take back what I said earlier. After thinking about it, this actually could be a bad thing. But thats the risk a developer takes when in the sports genre (see Acclaim). If it was any other genre, say FPS, then an ample replacement could be launched.

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The smilie is because I don't believe that EA will stop putting effort into their games, or stop improving them.

I like Madden better than ESPN, and yes, I've played both.

Although I do admit, this really sucks for ESPN fans, and I do feel bad for them...

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Seeminglys a great move by EA Sports in theory and it will pay off for them. My thought is that it must cost them a lot of money to do that. I was always under the impression that ESPN NFL didn't really sell enough copies to hurt Madden any.

Sucks that ESPN NFL will be no more, because I really felt like that was the far more realistic game and it was the only one that I played. They'll no longer be able to push Madden either, so Madden has no reason to improve. I'm guessing that I'm done with football video games to be honest with you all. Maybe Madden will be more realistic but I just can't see it when they have no reason to be.

In short, EA wins, everyone else loses.

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I'm starting to hate EA. I've been playing EA sports games all my life, but they're getting too big. I used to play a NASCAR game made by a company called Papyrus. For a while, just before Nascar became so big, they were all there was. The games tried to be very realistic, compared to EA's arcade nonsense. Eventually, coupled with NASCAR's greed, they bought exclusive rights, just like what's happening here. Within the year, Papyrus went out of business. :mad:

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sega can still make good quality games without the nfl lisence. take the winning eleven a.k.a pro evolution soccer series from konami. they don't have any of the actual names of teams or players (because they belong to FIFA and EA) but they still make superior games to EA. It's all about the gameplay, and aslong as Sega put in the effort to make a quality product than people will buy it. I like the winning eleven series too cause it pokes fun at not having the official lisences so it can be creative and funny when choosing names of teams and players. usually for players its a letter off or an exageration of their name. and for naming club teams they just call them by their nickname. so instead of the redskins they'd be called the skins or something. its not totally bad news, hopefully sega can survive from this cause i enjoy their games, and competition breeds quality.

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Originally posted by iheartskins

You guys are all implicity bringing up the ecomonic and social policy reasons why we have Antitrust law in this country. Pretty interesting, at least to me. :geek:

One problem. EA has no monopoly on software or video games.

THAT would be a case for antitrust.

EA simply has a license. If we start going after exclusive licensing deals in this country, we can kiss ANY semblance of a free society goodbye.

That'd be like you having a character in a movie you developed, have the rights for, and not being able to control video game representations of the storyline.

I don't think it necessarily means EA won't work anymore. It means they'll have the ability to make the perfect game. Remember, there were certain elements they DID NOT have access to.

Not saying this is a good or bad thing, but it has NOTHING to do with antitrust or social policies.

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Originally posted by beast_of_burdens

sega can still make good quality games without the nfl lisence. take the winning eleven a.k.a pro evolution soccer series from konami. they don't have any of the actual names of teams or players (because they belong to FIFA and EA) but they still make superior games to EA. It's all about the gameplay, and aslong as Sega put in the effort to make a quality product than people will buy it. I like the winning eleven series too cause it pokes fun at not having the official lisences so it can be creative and funny when choosing names of teams and players. usually for players its a letter off or an exageration of their name. and for naming club teams they just call them by their nickname. so instead of the redskins they'd be called the skins or something. its not totally bad news, hopefully sega can survive from this cause i enjoy their games, and competition breeds quality.

I have to disagree, the stars are a big part of the nfl and the reason alot of us love espn or madden is so we can play as Ramsey making the big pass to Coles, or Portis breaking the long run. It's not the same if you're playing as a bunch of fake names. I mean how many people desperately wanted Arrington to be in the games instead of lolb 56. This is huge blow for gamers as without competition of some kind ea can pretty much become the microsoft of the football gaming arena, why put money into being great when you can be average and still be far above the rest. Very very bad imo.

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Originally posted by pr11fan

I have to disagree, the stars are a big part of the nfl and the reason alot of us love espn or madden is so we can play as Ramsey making the big pass to Coles, or Portis breaking the long run. It's not the same if you're playing as a bunch of fake names. I mean how many people desperately wanted Arrington to be in the games instead of lolb 56. This is huge blow for gamers as without competition of some kind ea can pretty much become the microsoft of the football gaming arena, why put money into being great when you can be average and still be far above the rest. Very very bad imo.

Did having the exclusive NFL deal do jack squat for Acclaim when they hit the N64? No. Did tecmo bowl suck because it didn't have the nfl license? No.

If you make a good game, people will buy it. If you make a crappy game, people will not buy it.

I think the deal is BS too, but lets settle down for a minute and clearly think the situation through. EA has obviously been making a game a lot of people are very happy with and even happier to buy year after year. If you don't like it don't buy the game. It's that simple.

In the IGN article I really like how Midway was thinking in making a playmakers type game, I think that would be awesome. You CAN have an awesome football game without the NFL label.

The only reason people cared about Arrington being in the game was because it was in the context of a real life team and it was frustrating to see ONE number in a sea of names.

Read this IGN article. http://sports.ign.com/articles/572/572886p1.html

I absolutely LOVE Midway's idea of making the anti No Fun League game. Granted, it's midway, but the sky is the limit as far as that game goes. They can still make an absolutely awesome football game perfectly fine without the NFL without having to bow down to all of their little rules.

This is time for the other companies to step up to the plate IMO. If they make a game that is fun to play, people will buy it plain and simple.

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