Monday, November 18, 2013
EA Out
The video game company EA (Electronic Arts) and Tiger Woods are cutting ties after 15 years together making the Tiger Woods PGA Tour video game. The partnership ended with unspecified reasoning but members of both parties said it was mutual. Electronic Arts will continue to make a PGA Tour video game, however the game will no longer continue with Tiger Woods' name attached to it. The fallout from this may not be immediate for EA but the end of the company may be in the not too distant future. This is the second big hit to the company since the summer. It was announced that in the midst of being sued by many former and current NCAA football athletes, EA will no longer be making an NCAA Football video game. Both hits will have a major impact on EA's bottom line. The split with Tiger will have financial burdens on both parties but in the end Tiger will continue to have more than enough to survive while EA may be a dead company walking. It has been a rough couple months for EA.
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I think the loss of both Tiger Woods and NCAA video games will really effect EA as well. Obviously Madden is their biggest seller, but both of those games have to be in the top five games sold for EA over the past five years. Also, I'm interested to see how people respond to EA's new basketball video game.
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