Electronic Arts vs Take-Two: The Competitive Strategies in the US Videogame Market
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Code : COM0056
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Region : USA
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Introduction:Founded in 1982, California- based Electronic Arts (EA), a leading developer and publisher of video games software, dominates the highly competitive multi-billion dollar US sports video game software industry. On the basis of its Intellectual Property and also on third party licenses, EA has developed games like the Madden NFL (an American football video game) and FIFA SOCCER (a game popular in Europe), among others. In 2004 EA's 'Madden NFL' faced its first major competition in the football video game segment from'ESPNNFL 2K5', a low-priced football video game considered to be as good as Madden NFL published by Take-Two Interactive, rival developer and distributor of videogame software. EA responded, first by dropping the price of its popular franchisees , like Madden NFL by half and then by acquiring in a period of six months exclusive licensing deals with some of the major leagues in the football segment. These licenses enabled EA to 'exclusively' portray the stadiums, teams and the players (including their names), for making football video games more realistic. Despite being barred from the football segment, Take-Two posed tough competition before EA in the baseball segment by signing a semi-exclusive deal with the Major League Baseball (MLB) to produce baseball video games. Take-Two also purchased Visual Concepts, the studio originally belonging to Sega in which ESPN NFL 2K5 was developed... |
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