March 22, 2005
NBA Signs Non-Exclusive Videogame Rights
Kudos to the NBA for signing non-exclusive videogame rights contracts with five publishers. EA, Take-Two, Midway, Sony and Atari all signed up for long-term deals totaling $400 million. The NBA is right on the ball (cough) in thinking competition will breed better games and more innovation vs. the greedy NFL exclusive with EA.Industry sources pegged the total value of the five and six-year contracts at $400 million, including both direct payments to the league and marketing spending with the league's broadcast partners. NBA executives declined to comment on financial details of the arrangements.
Interestingly EA, Take-Two, and Sony get to make simulation games annually, but EA and Midway will be forced to alternate years for their arcade-style NBA Street and NBA Ballers games. This is actually a smart move by EA to not dilute the quality of the Street franchise. A two year cycle guarantees more time to make a better game.
