News

Electronic Arts settles in Madden and NCAA monopoly suit
Posted: 22.07.2012 07:56 by Comments: 5
The class-action lawsuit challenging Electronic Arts' licensing agreements with the National Football League and NCAA is over, and has temporarily ended EA Sports' monopoly.

While gamers who purchased a Madden product from EA between 2005 and today on the PlayStation 3, Wii, or Xbox 360 can get $1.95 (older games on the GameCube, PlayStation 2 and Xbox get $6.79) may sound meager, the real victory comes from EA having to at the very least temporarily relinquish the licensing deals.

A five-year ban has been slapped on the exclusive license between EA Sports and the NCAA once the current contract expires in 2014, while EA may not have an exclusive licensing contract with the Arena Football League for five years. Unfortunately, the meager monetary settlement means the NFL license remains exclusive.

However, this opens the door for 2K Sports to release its first college football game since College Football 2K3.

The lawsuit was filed four years ago in July 2008, and stated that EA had a monopoly, allowing them to charge 70% more for their product (NFL 2K5 was a mere $19.99 to Madden's $59.99, and reviews and sales proved the former to be a better game.)
Source: VG247
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Comments

By nocutius (SI Elite) on Jul 22, 2012
nocutius
I don't quite get this one, isn't an exclusive license by definition a monopoly? And if those are legal why would EA lose the lawsuit?
By JonahFalcon (SI Elite) on Jul 22, 2012
JonahFalcon
They're not, but EA paying $27M allows them to continue the Madden monopoly.
By obiwanmccartney (SI Veteran Newbie) on Jul 22, 2012
obiwanmccartney
Wonder if thats the same lawsuit that means we can get NCAA March Madness back?
By herodotus (SI Herodotus) on Jul 23, 2012
herodotus
And here I thought Gridiron was a dying sport (Monday Night Football at least). They were losing millions hand over fist some years ago.
By JonahFalcon (SI Elite) on Jul 23, 2012
JonahFalcon
@obiwan: Well, you can get College Hoops 2K back.

@herodotus: Er, if you followed the NFL lockout, you'd have learned that the sport itself was making money hand-over-fist more than ever.