Electronic Arts: Monopolizing the market to drive profits with Madden NFL?

Exclusive agreements. Inflated pricing. Strong arming competition. It reads like a scene out of the 1920s mob era.

Unfortunately, it’s the reality of a recent lawsuit that involves Electronic Arts Inc. and its alleged manipulation of the market while relying on the purchasing power of the extremely loyal customer base of gamers. Specifically, Madden NFL gamers.

We’re in the process of moving a case through court that represents anyone who has purchased Madden NFL, NCAA or Arena Football branded videogames from EA from August 2005 until present. Our claim? That EA pushed competitors out of the market by signing exclusive agreements with the National Football League, the NFL players union, the National Collegiate Athletics Association and others.

So they signed agreements – what’s the big deal?

The big deal is this market is driven by how realistically game companies portray players and teams in sports games. By signing exclusive agreements with these huge sports groups, EA is the only developer that can use likenesses, making the game much more enticing to customers.

This also means EA can charge as much as they’d like because they are the only ones offering the realistic representations that consumers expect.

A monopolization of the market stifles the creativity and quality that naturally results from healthy competition among game makers. Many argue that Take Two Interactive had a better game with NFL 2K5 – which received rave reviews and editorial awards -- but EA’s exclusivity agreements pushed them out of the market.

A reviewer at IGN called NFL 2K5 “one of the finest sports experiences I’ve had the pleasure of enjoying.”

Competition drives innovation – we all know that’s the foundation of a free market – and dedicated gamers want that innovation and new features. That’s why they loyally purchase these games every year.

Unfortunately, that’s not what they’re getting. EA is sitting pretty in its agreements and knows it doesn’t need to pump more money into enhancing the game because there isn’t any competition.

Recently we received the green light from the court after it ruled against EA’s motion to dismiss the case. That means Madden purchasers will soon get their day in court.

We’ll continue to update our Web site and blog on this case since we recognize there are loyal Madden followers interested in how this will end.

In the meantime, we want to hear from those who’ve purchased the game, or several versions of it, since 2005.

If you have questions about the suit or want to participate, you can e-mail our attorneys at [email protected].

We also want to hear your thoughts. Leave a comment or send us a note and share your thoughts on how EA may be stifling competition, and why you think it’s hurting the gaming experience.