Electronic Arts has scrapped the hostile take-over bid of Take Two Interactive. Many suspected that EA’s main interest was in Take Two’s Grand Theft Auto franchise which is one of the most successful gaming series ever.
Today’s decision to not pursue the bid is good news for fans of the NBA and NHL. EA Sports (a division of EA) and 2K Sports (a division of Take Two) annually produce an NBA and NHL videogame title. Previously, both companies produced versions of an NFL and MLB game. However, EA secured an exclusive NFL license which prompted 2K Sports to secure an exclusive MLB license.
The biggest losers of these exclusive agreements were the fans of the respective leagues and videogamers in general who witnessed a decline in the perceived quality of the exclusive titles. Members of the gaming community were not shy at voicing their displeasure of the lack of attention developers were putting towards games. This decline led many individuals to feel less connected with the league in general - leaving way for these fans to seek alternate forms of entertainment. If the take-over bid took place, then there would no doubt be only one MLB and one NBA game produced annually.
Sports leagues should consider the impact exclusive agreements have on the tribe. Long term financial success for the league means more than getting more licensing dollars now. It means extending the lifetime value of each fan. Signing exclusive video game contracts may not be consistent with this goal.
