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Take-Two Nabs MLBPA Rights; Visual Concepts

by Steven Rodriguez - January 24, 2005, 7:00 pm EST
Total comments: 6 Source: Reuters

Take-Two gets almost-exclusive rights to pro baseball players, then acquires sports developer Visual Concepts from Sega.

Take-Two has had a pretty rough new year. First they learn that Electronic Arts won exclusive rights for NFL games, and a few days later, they take the ESPN license from them as well, leaving the pubilsher with low hopes of becoming a sports giant.

Well, Take-Two has fired back with a shot of their own. Starting with the 2006 MLB season, they will be the exclusive third-party holder of the Major Leauge Baseball Player's Association license. This means that while other third-party publishers can still make baseball games with the MLB license (team names, ballparks, etc.), they cannot use the actual names of the players.

This might seem like a big blow to Electronic Arts, but there's something of a loophole in the workings of the deal. Take-Two is the only third-party that has rights to the players, but the first-party publishers, Sony, Microsoft and Nintendo, can still get the license if they want it. (Sony already has it with developer 989, and this deal does not affect their deal with the MLBPA.) Additionally, there's nothing preventing EA from hooking up with a first party, and having them publish an Electronic Arts developed baseball game, with license in hand.

Take-Two has not yet announced any plans of a new baseball game in the works. Since they will basically have the only complete baseball game available from a third party, it would seem logical that they would capitalize with a version on Nintendo systems.

In a related story, Take-Two has announced that they have bought out former Sega Sports developer Visual Concepts for the rock-bottom price of $24 million. The purchase includes Kush games, the development team reponsible for the current line of ESPN 2K videogames. The sale of the developer to Take-Two means that Sega will probably quit the sports arena for good, especially since EA has football and ESPN locked up for some time.

Take-Two and VC will still work with Sega. Sega will publish some of Take-Two's games in the Asian markets (Japan, China, Korea, etc.), and distruibute Visual Concept-developed sports arcade games throughout Japan. Though things didn't go the way that either publisher had hoped for, they both agree that continuing to work together would be in their best interests.

Take-Two Forms 2K Games Publishing Label

The new brand will be attached to sports games and other titles.

Take-Two Interactive Software, Inc. Announces Formation of 2K Games

Publishing Label

New York, NY - January 25, 2005 - Take-Two Interactive Software, Inc.

(NASDAQ: TTWO) announced today that it has established a new publishing

label, 2K Games. 2K Games will publish a wide variety of both

internally and externally developed console, PC and handheld products,

including sports titles under the 2K Sports label. Numerous new

products for the 2K Games label are expected to be announced in the

coming months.

2K Games will incorporate Take-Two's internally-owned development

studios Visual Concepts, Kush Games, Indie Built, Venom Games, PopTop

Software and Frog City Software, as well as the team at Take-Two

Licensing.

Paul Eibeler, Take-Two's President commented, "Consistent with our

strategy to diversify Take-Two's product portfolio, the team at 2K Games

is rapidly building a sweeping lineup of high-profile licensed and

proprietary titles for console, PC and handheld platforms, leveraging

the exceptional successes and capabilities at Take-Two. From

high-profile Hollywood licenses to PC-only titles to sports titles, 2K

Games will be defined by exceptional games for all genres and

platforms."

Certain titles previously planned for release on Take-Two's Global Star

label will now be released under the 2K Games label.

Take-Two Gains Rights to MLB-Related Properties

Keeps first parties' rights open to retain consumer choice.

Take-Two Awarded Long-Term, Third-Party Exclusives with Major League Baseball Properties, Major League Baseball Players Association and Major League Baseball Advanced Media to Publish Interactive MLB Video Games

Derek Jeter Named the Official 2K Sports Major League Baseball Spokesperson and Cover Athlete

New York, NY - January 31, 2005 - Take-Two Interactive Software, Inc. (NASDAQ:TTWO) announced today long-term, third-party exclusive licensing relationships with Major League Baseball Properties (MLBP), the Major League Baseball Players Association (MLBPA) and Major League Baseball Advanced Media (MLBAM) which provide Take-Two with sweeping video game rights. Under these exclusives, Take-Two will develop, publish and distribute a broad portfolio of interactive, officially licensed video games that are expected to drive the MLB video game business to new heights.

Additionally, Take-Two announced that Derek Jeter, New York Yankees All-Star shortstop and 2004 Gold Glove recipient, has agreed to a multi-year contract to be spokesperson and cover athlete for the licensed 2K Sports baseball simulation series. "I'm excited to be partnering with an industry leader like Take-Two and I look forward to working together to take the video game experience to the next level for baseball fans," said Derek Jeter.

Take-Two's exclusive, long-term deals, which begin in Spring 2006, enable Take-Two to publish officially licensed Major League Baseball video games on console, PC and handheld platforms. The exclusives include rights to the marks of all 30 Major League Baseball Clubs, MLB players, Major League ballparks and Minor League Baseball Clubs, as well as MLB.com online content, for use in Take-Two's baseball games. Take-Two plans to offer multiple titles based on traditional baseball simulation, arcade and manager-style games, including innovative and specially-timed releases throughout the baseball and holiday seasons. Take-Two's Visual Concepts and Kush Games development studios are creating the baseball titles under Take-Two's recently established 2K Sports publishing label.

These exclusive deals specify Take-Two as the exclusive third-party publisher for officially licensed Major League Baseball video games. Consistent with Take-Two's desire for continued consumer choice, the hardware manufacturers such as Sony, Microsoft and Nintendo will retain the right to enter into development agreements for MLB games specific to their particular platforms. All other third-party publishers and developers are precluded from publishing officially licensed MLB simulation, arcade, and manager style games, either directly or in affiliation with a hardware manufacturer, during the length of the exclusives. Take-Two will be the sole developer, publisher and distributor of licensed simulation, arcade and manager-style Major League Baseball PC games.

"The combination of Take-Two's position as a leading video game publisher and distributor, and our experience with Visual Concepts in creating high quality games, makes this an ideal partnership for Major League Baseball," said Howard Smith, Senior Vice President, Licensing, Major League Baseball Properties. "Take-Two's plans to introduce more game titles and to distribute them throughout the year, including the key holiday-selling season, will provide baseball fans with exciting and compelling interactive entertainment year-round."

"The baseball video game market has been underdeveloped and 2K Sports has the product plan and talent to change that in next generation video game hardware," said John Olshan, the MLBPA's Category Director for Interactive Games. "For the first time, we will be positioned to take advantage of the entire baseball, hot stove and holiday seasons with an outstanding partner who is committed to giving baseball video games the product development, marketing and distribution required to bring sales in line with the immense popularity of Major League Baseball."

"We look forward to using our technology and online interface to enhance the interactive experience for baseball fans and further extend the reach and increase the exposure to Major League Baseball with the countless hours Americans spend playing video games," said Noah Garden, Senior Vice President of e-Commerce for MLBAM.

"We are extremely honored that Major League Baseball recognizes the accomplishments of Take-Two and Visual Concepts and shares our vision for the future of interactive sports games," said Steve Glickstein, Take-Two Vice President of Publishing. "We are also very happy to announce the long-term relationship with Derek Jeter, one of the greatest baseball players of our generation. We look forward to working with Derek to help us fully leverage baseball's status as one of the country's largest spectator sports and its prominence as America's pastime."

Greg Thomas, President of Visual Concepts, makers of the critically acclaimed 2K Sports line of games, added, "This is an exciting opportunity for us to take the interactive baseball market to a completely new level. As demonstrated by our entire line of critically acclaimed 2K Sports titles, we will continue to innovate in the game play experience, and now, under the incredible scope of these relationships, we will be able to expand the genre by offering a number of new and exciting titles that give consumers the ability to enjoy baseball in entirely new ways. We are very proud of the quality and innovation of our games, along with the tremendous loyalty of our fans, and we look forward to reaching an even bigger audience with our expanded portfolio of titles."

Talkback

foolish03January 24, 2005

This is a miniscule blow to EA compared to the nfl and espn deals. Every little bit helps though. To hell with EA.

FamicomJanuary 24, 2005

As a fan of EA's MVP Baseball line (despite what anyone says about EA's milking, they took the utter crap that was Triple Play, turned it around and made probably the best baseball game ever) I'm saddened because this year's game will be the last for a long time. As a PC sports gamer I'm saddened becase the Take Two's 2k line doesn't make PC games, and I don't buy console sports games due to lack of "flexibility" (mods, roster updates, etc). It also sucks that Sega got completely shafted out of the sports genre. But as a Nintendo fan, there's a silver lining in this deal that Nintendo very well could capitalize on. While it's still undetermined if TT/VC will skip the Cube in the future (and with Revolution on the horizon next year, it's probably a moot point), the gate is left wide open for them to jump in and kick off another string of licensed baseball titles. The N64 Griffey titles weren't that great, but they were respectable games, and while Ninty can't build off that name anymore (because you know, Griffey sucks now and is no longer with the Mariners) it would be in their best interests to snatch up a good developer and get in on this. But these are things people have been saying for a while now....

WuTangTurtleJanuary 24, 2005

What ppl forget is that 989 sports and The Microsoft sports development studios took a year off to get their game on par with EA and Sega, only to find out that EA screwed everyone.

All their work during the abscence is practically a waste of time and money.

Sega isn't the only one effected.

I hope Nintendo finds a good dev. studio to rock EA.

KnoxxvilleJanuary 24, 2005

BOOYAH!!

PaleMike Gamin, Contributing EditorJanuary 25, 2005

It makes me wonder if they didn't really take a year off...they just had the news earlier so they knew it was pointless to develope something.

DjunknownJanuary 25, 2005

It seems Sega is going for the Japan-centric route with this move. RIP the 2k series.

Question is, will Take Two continue what Sega has done and not support its sports game for the 'Cube? Granted, there's proabably one season left before the next batch of consoles are supposed to to come out. Take Two hasn't really shown the big N much love this time around...

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