As GamePolitics reports, a University of Michigan economics professor has brought suit against the publishing giant, claiming that EA has been able to overcharge consumers on the price of Madden games to the tune of between $701 million and $926 million. Dr. Jeffrey MacKie-Mason came to this conclusion by calculating the difference between what EA was charging for Madden while 2K
Yeah, I read this but the study is flawed. It assumes that since there no competitors, EA charges $60 per game. Even if there were competitors, they'd still charge $60 per game.
Full article
http://www.gamepolitics.com/2009/07/...rs-926-million
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Originally Posted by Warbuck$
How do you know this?
More competition would have undoubtedly taken away some of EA's sales because of the cheaper (and argued by many...the better) alternative. Therefore to rekindle that market share, it would only make sense for EA to lower their prices.
They should charge 20.00 for that stiff player running bullsh1t they call a game. Dreamcast turned out better playing games than that, with the makers they had. EA is doo doo capitalizing on no competition.
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Crank that Chris Brown.......
In the US, which is a free market, this lawsuit is self-serving BS.
Last edited by GAV; 07-15-2009 at 11:19 PM.
The same reason NBA Live is $60. The same reason Fifa is $60. The same reason NHL is $60.
I'm all for competetion, but for innovation purposes. If lower prices is a byproduct, so be it.
We real cool. We
Left school. We
Lurk late. We
Strike straight. We
Sing sin. We
Thin gin. We
Jazz June. We
Die soon.
~We Real Cool, Gwendolyn Brooks
The going rate for video games is $60:
Street Fighter 4 is $60
Fighting game competitor BlazBlue is $60
Call of Duty Modern Warfare 2 will be $60
So will FPS competitor Halo ODST
When ESPN Football released their cheaper NFL alternative, EA still charged full price for Madden. I have no idea how an economics professor from UM could propose such an outlandish idea. EA charged for a game, people brought it. Supply and demand.
Edit: Correction. You were right that EA probably would have reduced the price. I just read another article that EA cut the price of Madden down to $29.99 because of NFL 2k5. I still think the case is BS though.
Last edited by KillingMyGPA; 07-16-2009 at 02:57 AM.
The purpose of this is to get attention and nothing more. The prof just wants to make a name for himself so he can get more grant money.
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Is there a lawyer in the house?
Please not sideout
It is not supply and demand. Cost is driven by competition. Take your consumables for example. You see every store advertise on Sunday or thursday to the weekend cash. They lower prices to drive people into stores. besides not having any type of competition, what has drove the price of Madden to this level? Head Coach? If company A drops a price to move units company B likely will follow suit.
Let me see, xbox 360 drops the price so PS3 keeps their price high? There is a price point and a point you go for profit. EA knowing Madden is it's cash cow would not drop price. I said this years ago when we debated on NFL2K5 vs Madden 2005. To this day the Madden series is just now trying to catch up to what 2K5 offered. That is 5 years almost. I don't go on release date but when the develope. They start in 04 to release in 05. They started in 09 to get to 10.
I remember getting into debates and people saying EA didnt have the cash or the management this or that. That was my point exactly. Now after 5 years EA wants to use half assed ESPN and add little things in the game to make people try to forget 2K5.
2K5 may not have played as well as Madden (I thought it was better by far) but what it did as far as innovation EA is just now trying to catch up.
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The only thing you can really say is EA's agreement with the NFL tends to give EA a monopoly on football games. I'm not sure this violates any sort of anti trust issues though. I agree with Mich this is a total attempt by the professor to get his/her name out there.
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PC Madden still alive and well!
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If i remember right, when 2k5 came out it was $20 and Madden was $50 (both CG of course at that time). EA did a price drop WAY sooner than it normally does that year..... maybe that's what this is really based on.
I think so too. But if there is no competition you can set the price as high as you want. Brings into question the moral and ethics of this company. I have not been a fan of Madden since 2002. Since then all efforts have been lackluster at best while not changing much and still priced like it was a brand new funk. It is the cash cow for that company.
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The other side of the coin though, no one can tell a company what they can sell their products for, no matter what they charge. If that was the case we'd be suing stadiums and carnival owners for charging $7.00 for a 20oz Pepsi.
.
Yeah your right thats why I said moral and ethics. I like this post from a few years ago.
"Old 08-04-2007, 05:14 AM
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im getting 2k8 because of this thread...
if its a buncha bull**** then im gonna bomb the **** out of all of you with manning to marvin as soon as madden hits...
dude i have tried so hard to be positive and get into ncaa 08 both on ps3 and ps2 but they both SUCK
its so ****in sucky that i cant believe everyone isnt saying it... especially the NG... everyday i wake up and immediately i think... "i should turn on the ps3 and try________", but no matter how i play or what i do the game just blows man...
the ps2 is ok but the freakin bull**** that takes over and hands the game to 1 guy just ruined it for me... oddly enough its worse when im winning from it... i just want the game to end, and when the other guy quits, and he always does... then it wont keep the stats...
losing by 3 tds and then having your first completed pass turn into a fumble was ok... like the first 10x... the d-line crashing into the backfield during these beatdowns is really fun too but not nearly as much as the sacks or the ints after your opponent chucks some bombs into coverage for tds....
if 2k is good enough ill play it over madden and ncaa in a heartbeat, EA took a fun competition and turned into some goofy money making marketing nightmare... trying to add "balance" to a video game is cool for **** like mariokart and pong, but the last thing i want is some ****ing cig-smoking couch potato hucking bombs on me 14x a game and then poppin off about how its "cuz you called zone" like he's using masterful innovative strategy over my "newb defense" that i developed over the last 20 years of living life like it revolved around a football....
those EA playbooks i cant edit will be enough to turn me away from the evil empire...
im getting up and going shopping tommorrow, im gonna see if gamestop will apply my deposit for madden to all pro and for the first time in a while ill be skipping the midnight sale if 2k plays good...
then ill wait and see if the NG madden sucks as much donkey thing as ncaa does before i flush another $60... and let my buddies get the ps2 version and see that too...
aw hell, maybe ill still pick up the ps2 version at midnight... how bad could it be???"
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I remember this though.
http://www.youtube.com/watch?v=vzdjYFjUzdo&NR=1
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