Mibu no ookami
Member
EA's deal with the NFL was worth 2 billion dollars over 5-6 years (including marketing commitments).
Let's extend this to the full 6 because we don't know the exact language of the deal, this is the most conservative way to look at it.
333 million dollars per year.
At 70 dollars per copy (they're not going to sell every copy for a full 70) minus royalties mean 50 dollars of revenue per game.
This means each version of Madden needs to sell at least 6.66 million copies per year to just cover the cost of the exclusivity contract. I know they're going to make considerable money on MTX, but you still need to account for the development cost of the game.
Ultimately this is why Madden is so garbage because EA knows that they need to minimize development costs every year AND make as much as they can on MTX just to generate a profit due to the exclusivity deal, meanwhile the NFL doesn't care because they're getting 2 billion dollars out of it, which is more than they'd probably make with multiple individual license holders.
Let's extend this to the full 6 because we don't know the exact language of the deal, this is the most conservative way to look at it.
333 million dollars per year.
At 70 dollars per copy (they're not going to sell every copy for a full 70) minus royalties mean 50 dollars of revenue per game.
This means each version of Madden needs to sell at least 6.66 million copies per year to just cover the cost of the exclusivity contract. I know they're going to make considerable money on MTX, but you still need to account for the development cost of the game.
Ultimately this is why Madden is so garbage because EA knows that they need to minimize development costs every year AND make as much as they can on MTX just to generate a profit due to the exclusivity deal, meanwhile the NFL doesn't care because they're getting 2 billion dollars out of it, which is more than they'd probably make with multiple individual license holders.
