EA chief on Xbox Live
Warren's Consumer Electronics Daily (not freely available online) reported yesterday that Microsoft and Electronic Arts are still negotiating over the possibility of Microsoft using EA's popular sports titles on the Xbox Live online gaming platform. (Online-enabled EA console games are available only for the Sony PlayStation 2.) The story was based on comments made by EA CEO Larry Probst to a Credit Suisse First Boston conference late last week. The story intrigued me enough to go back and listen to the online archive of the presentation. Here's what Probst said:
"We have had ongoing discussions with Microsoft about supporting their Xbox Live functionality. It really comes down to a difference in philosophy about the business model. They’re creating a new revenue and profit stream. They want to use our intellectual property. They don’t want to compensate us for the use of our intellectual property. We think that’s a little unrealistic. It would be akin to someone starting a new cable channel and going to HBO or ESPN and saying, we’re going to use your content, but you’re not going to be compensated for that. I doubt that they would get much of a reception from HBO or ESPN. And so, we’ve been having ongoing discussions. The negotiations continue to this day. We’re moving closer and closer together in terms of a business model that we think is palatable. I think we’ll eventually get there. In the meantime we are very, very strong on the Sony platform, supporting their functionality."
http://blog.seattlepi.nwsource.com/m...es/001148.html
EA CEO Larry Probst recently outlined the company's position on why Electronic Arts don't currently support Xbox Live!
"It really comes down to a difference in philosophy about the business model," Probst said. "They're creating a new revenue and profit stream. They want to use our intellectual property. They don't want to compensate us for the use of our intellectual property. We think that's a little unrealistic."
http://www.xboxrules.com/newscomments.php?newsid=126