EA-ESPN

It seems that Video Game Industry analysts are starting to weigh in on the recent EA - ESPN deal...

It appears that in my previous post my opinions were not to far off... Even Fun Comes With A Price

Mike Wallace, an analyst with UBS Investment Research, said in a report "We think this deal further strengthens EA's competitive position in sports he added that he thought the deal would help EA primarily "from a marketing standpoint."

Although Wallace acknowledged that the contract was bad news for Take-Two, which holds a license with the sports network through early 2006, he said, "We believe the loss of ESPN is not a significant one and not as bad as losing the NFL, as [Take-Two] will still be able to publish sports games without the ESPN brand. [Take-Two] could also sign its own deals with other leagues...

Many of the analysts agree that the deal gives EA an unprecedented amount of clout in the sports-game market. "It's an absolute show of strength and a consolidation of power," William Lennan, a WR Hambrecht analyst, told The New York Times. "It's a slap. It's a slam dunk. Pick your sports metaphor. This makes it tougher for people already facing an uphill battle to compete... For more click here

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