Video Gamers Sue Electronic Arts Over "Anticompetetive Conduct"

East Bay Business Times:

Gamers in California and Washington, D.C., have sued Electronic Arts Inc. over what they call "blatantly anticompetitive conduct" in its football gaming niche.

The suit against Redwood City-based EA (NASDAQ:ERTS) says after early competition in football games between EA and Take-Two Interactive Inc., EA cut the price of its Madden 2005 game from $49.95 to $29.95.

Read the whole story: East Bay Business Times

Comments

[Sumocat]

It was a shrewd move by EA to arrange exclusive rights to the leagues, but it wasn't anti-competitive. Take-Two could have competed for those contracts too, just as the TV networks compete to get the rights to air football games. As for the price hike, it costs money to get exclusive rights to something as big as NFL licensing. Really, it was the competition that led to the price hike. And of course, if gamers were as willing to spend money on generic football games as they are on officially branded ones, they might have seen cheaper and/or better games from other vendors.

[KISSman]

EA has done a lot of things don't sit right with customers and retailers over the years.

Customers were the big losers in the exclusive NFL deal that EA signed. When EA was trying to undercut their opposition in the market, customers won because they had reasonably priced options to choose from. Now, you aren't going to get the new Madden for anything less than $50 to $60 depending on your console.

On top of that, the game has not gotten any better since they've signed that deal. It's like they're sleepwalking because they don't have any competition to worry about and gamers like myself feel the need to have the most current version of Madden football.

EA has gotten too powerful in the gaming market and I'd love to see them lose this case.

[LuvDaH8ters]

I think you are right, but isn't their exclusive agreement with the nfl almost done.