Being a prominent publisher within the videogame industry promises a great deal of power, responsibility, and influence. Prominence comes at a price however, as every action is scrutinized under a magnifying lens of epic proportions. Publishers are susceptible to immense criticism and disapproval if questionable actions are made. Electronic Arts is one such company that has been framed in a negative light on numerous occasions within the past few years.
Back in 2006, they established themselves as the exclusive supplier of mobile games for all Nokia devices. More recently, controversy surrounding the purchases of multiple small development studios solely for intellectual assets, criticism from labor groups, and EA’s arguably declining game quality have contributed to its designation as an “Evil Empire.”
One of the more recent blemishes on EA’s track record pertains to a class-action, anti-trust lawsuit in which the plaintiffs claimed that the organization “monopolized an alleged market for interactive football software.” Filed in Oakland, California, the allegation asserted that EA’s exclusivity contracts restricted other companies from being able to use player’s names, team logos, and likenesses within any video game mediums. To deepen the offense, the suit also pointed the finger at EA for increasing the price of games pertaining to those licenses.
Finally wrapping up in 2012 after four years of litigation, EA Sports reached a settlement set at $27 million. While this particular ruling prevents EA Sports from making exclusive contracts with the CLC, NCAA, and AFL for at least five years from the settlement’s closing date, the agreement doesn’t touch EA’s highly profitable Madden franchise. Non-exclusively, EA is also permitted to pursue NCAA football games after 2014.
Being that this is a class-action grievance, the lofty settlement fund is applicable to anyone who purchased a Madden, Arena Football, or NCAA Football game for PC or consoles between January 1, 2005 and June 21, 2012. Don’t expect to receive a small fortune however, payees can only receive $6.79 per copy purchased on the previous generation of consoles and PC (GameCube, Xbox, and PS2). The sum is even less for games purchased on the PlayStation 3, Xbox 360, and Wii, only $1.95 per copy. The good news, is that any money left within the settlement fund will be donated to Child’s Play, a charity that seeks to improve the lives of children in hospitals.
With a ruling falling in favor of the plaintiffs, legally EA has yet another hard pill to swallow, another blight on its already shady reputation. Walking the line of legal and moral acceptance may garner benefits from a fiscal standpoint, but it has and will assist in alienating EA from consumers, stockholders, and other companies. Though EA’s control over football gaming has been relinquished, it will be interesting to witness the future of the company who has a continual presence within the news, especially after the SimCity launch disaster and the resignation of EA’s CEO John Riccitiello.
Bio: Taylor Stein is an avid gamer, sushi lover, and overall nerd. After founding a gaming-related site of her own, GamerGirlTay.com, she went on to intern at G4TV, and is now a freelance video game writer.