A couple weeks ago, Rick Munarriz reported on the coup scored by Electronic Arts (NASDAQ:ERTS). The video-game powerhouse wrangled an exclusive deal from the NFL, enabling the company to have proprietary access to the league's intellectual properties. He mentioned the negative effect it had on Take-Two Interactive (NASDAQ:TTWO), which previously released low-priced games using the NFL as a backdrop for purposes of taking share from Electronic Arts' Madden franchise.
What a shame for Take-Two and any other company that was thinking of trying its hand at an NFL title. Having the NFL license in one's cache of tricks is certainly a potent marketing device. Nevertheless, that doesn't mean that the competition has to shrivel up in the back of the closet and cry themselves to sleep. No way.
Which brings me to an interesting press release issued by Midway Games (NYSE:MWY), the company that Sumner Redstone has a huge interest in (check out colleague Lawrence Meyers' analysis on that aspect). This concern is not taking things lying down and is in fact verbally posturing like a World Wrestling Entertainment (NYSE:WWE) superstar cutting a particularly vicious promo.
The product to be developed -- Blitz: Playmakers -- will go beyond the confines of the game itself and into the "troubling, behind-the-scenes stories of a fictional professional football league" (quoted from the release). Steve Allison, Midway's chief marketing officer, thinks the title will be an antidote to "watered down NFL sanctioned football games." Allison goes further and proudly states that the project will "include all the gameplay and fun the NFL won't allow." Does any of this remind you of Vince McMahon's promotion of the XFL? Apparently, there's going to be a lot of heretofore-unseen violent moves and scary blow-ups as this particular gridiron kettle comes to a boil. The headline says it all; this isn't going to be a pleasant jaunt on the field, it's "mature-themed football" all the way.
I love this stuff, and I think Midway should be credited for getting down and dirty with Electronic Arts now that the gauntlet has been cast. I don't expect Midway's mature-themed game to tackle granddaddy Madden and put him on the bench, but if the publisher can keep this bravado up (as I expect it will) and really go after the adult market, then the fact that the NFL license has been lost will be mitigated in an appropriate fashion. Sure, Midway used to be able to call the series NFL Blitz (and it should be noted that the series has always been edgy and rough), but with the license gone, the sky is the limit. It's not a reason to buy the stock, but investors looking for plays in the video game sector need to keep on top of developing slates to see where the opportunities exist.
Recent articles on video-game companies:
- The Nintendo DS was difficult to find this past Christmas season.
- Companies such as EA and Activision (NASDAQ:ATVI) are getting into advertising.
- Let's rumble: the DS vs. Sony's (NYSE:SNE) PSP.
Activision and Electronic Arts are past recommendations in the Motley Fool Stock Advisor , a newsletter which wrestles the market every month -- and wins. Start the New Year with a free, no-risk trial.
Fool contributor Steven Mallas owns none of the companies mentioned.
