On Tuesday, Motley Fool Stock Advisor selection Electronic Arts
With that in mind, I will make a bold prediction: Madden will blow away the competition.
Q: Hold on, Jeff. What competition?
As astute Fools may recall, EA signed five-year deals this past December with the NFL and its players association, granting the company exclusive rights to use NFL teams, players, and stadiums -- among other things -- in its football games, a lineup which includes Madden and the arcade-style hit NFL Street series. In other words, there is no competition. EA clearly paid through the nose for the exclusivity but, in exchange, received certainty and protection of the most important brand in its catalogue.
However, last year, smaller rival Take-Two Interactive
As a result, through the end of 2004, Madden had only outsold Take-Two's ESPN by just over a 2-to-1 margin on a unit basis for the PS2 console, while ESPN actually managed to outsell Madden on the Xbox, according to data compiled by the NPD Group. Worse, Take-Two extended the $19.99 price point to its basketball and hockey games, forcing EA to eventually drop its prices on its football, basketball, and hockey simulations -- thereby cutting into EA's margins and profits.
But that time is over. EA has locked up the NFL and NCAA football licenses while stealing Disney's
That said, EA has assured investors that it will be king of the video game gridiron this year and for years to come.
For related Foolishness, check out:
- Madden Sticks Around
- Madden Moves to NBC
- Sega vs. EA Sports
- Sega's Madden Challenge
- EA's Madden Dash
Want more stocks with the potential to crush the competition? Try a 30-day risk-free trial to Motley Fool Stock Advisor, which also grants you access to our investors' kit.
Fool contributor Jeff Hwang owns shares of Electronic Arts.