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.
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.