The high-profile court case against EA Sport's monopoly in the NFL market took an interesting turn this week, with an economist brought in to show how much the demise of 2K's competing NFL franchise has cost sports gamers. Despite admitting his report is based on incomplete data, University of Michigan economics professor Dr. Jeffrey Mackie-Mason has told the the U.S. District Court in San Francisco that EA's domination of the NFL video games market has cost gamers between $701 million and $926 million since 2K's NFL2K series was blocked from competing with EA.
EA had previously requested that Judge Vaughn Walker dismiss claims by Geoffrey Pecover and Jeffrey Lawrence. The two Madden buyers, serving as named plaintiffs in the class-action suit, alleged that by eliminating competition for NFL-licensed games EA had acted in a monopolistic fashion and unjustly enriched itself at the expense of consumers. On Friday Judge Walker issued a ruling denying EA's motion. The Judge did, however, rule that only claims in California and Washington, D.C. would go forward since that is where the two named plaintiffs in the case reside.
Sports video games are a huge business -- and for many years, it was an extremely competitive space. I remember a few years back trying to wade through half a dozen different baseball video game titles to figure out which one was worth buying. However, a few years back, video game giant EA started signing exclusive deals with a variety of sporting leagues, including the NFL. These exclusive deals supposedly meant that only EA could produce games with the names and stats of real players -- a huge selling point among most fans. And, of course, in gaining exclusivity, EA has completely cashed in. However, a bunch of angry video gamers are now suing the company for anticompetitive conduct, noting that these exclusive deals killed off all the competition, allowing EA to drastically raise its prices.
If you're a football fan, you've surely heard the voice of the late John Facenda. Facenda, a beloved Philadelphia newscaster from 1948-1973, gained national recognition for his voice-over work with NFL Films in the latter part of his career. However, a lawsuit filed by Facenda's son alleges that the NFL allowed Electronic Arts to use the announcer's voice to promote Madden 2006 in violation of a contract Facenda signed before his death.
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