Madden: Dynasty Mode

Key Takeaways:
EA made a number of excellent strategic decisions with Madden over its 25 year history
To make an impact, look to an undeveloped market
Removing competition from the playing field is a great recipe for success
                                        

                              (The start of something really big. Credit: Polygon.com)

It’s the day before Super Bowl 49, one of the most highly watched sporting events in the world. The players get little sleep knowing that a championship is at stake. Certain companies empty their pockets to debut new trailers, products and brands in 30 second commercials that cost several million dollars. Two of tomorrow’s players though, have something else on their mind – Madden. The New England Patriots’ Shane Vereen and the Seattle Seahawks’ Richard Sherman are set to do battle with their respective teams in the virtual world of football. The event is televised, former American Idol winner Jordin Sparks is in attendance, and the stakes are high. Vereen, like his team the very next day, comes out with a victory. Overall, it’s a fun experience for players and fans, but more importantly, it showcases how big a phenomenon the Madden franchise has become. In the official simulation of Super Bowl 49, Madden correctly picked the score, and that the Patriots would rally back from a 24 – 14 deficit. Happy Patriot fan memories aside, what this experience underscores is how this sports franchise became synonymous with football itself, and does not appear to be slowing down anytime soon.

   

                   (Some nice Madden publicity before the Super Bowl. Credit: Bostonglobe.com)

The story of Madden’s inception is a tricky one, teemed with shrewd business moves that might have been disasters had a single thing gone awry. It starts with Trip Hawkins, the founder and CEO of Electronic Arts (EA), who worked with the coach John Madden himself to create the game’s interface and playbook intended to make the most realistic professional football simulation. He then created a team to reverse engineer the Sega Genesis, which although was extremely dangerous if there was legal action, ended up saving EA a total of $36 Million over the years. By reverse engineering the console EA could produce games for the Genesis that would override any lock on it, meaning that they would never have to pay Sega royalties for the cartridges. Instead, after completing the reverse engineering process, EA offered Sega the opportunity to alleviate the frustration by allowing EA to pay a much lower royalty fee, which Sega obliged as long as EA would help create a second football franchise, Joe Montana Football. EA used Madden as the blueprint, but made the game inferior to Madden in order to protect their own business. Once Madden was released, it was an instant hit. Although sales’ data is relatively difficult to find for the early years the game has since spawned an annual iteration since its inception for multiple platforms, most of which reach a million sales or more depending on the platform.

                                                       

(The “other” EA football game. Credit: mobygames.com)

What made Madden different though is that it approached new groups of gamers: sports fans and athletes. For the first time, there was a true sports simulator where fans could play as their favorite teams or players, and athletes could play as themselves in a video game. Though not mutually exclusive, the game certainly appealed to new users who may not have been as interested in Mario or Sonic but instead wanted a sports’ experience. Fans would be invested in their teams and players would be invested in their own stats. Furthermore, with the annual iteration the game delivered new content including players and gameplay modes. The amount of developer to fan interaction is quite high today as well, as roster changes are typically reflected in weekly downloadable content.

     

(Gaining athletes was an undeveloped market. Credit: Chiefs.com)

Interestingly enough, Madden was able to find publicity in superstition. About 10 years into the franchise’s existence talk of a Madden curse began. While EA refused to believe in it, the curse has managed to bring them excellent notoriety in the public among and outside of gamers. For example, in 2003, Michael Vick had just come off one of the most electric seasons for a mobile quarterback in the NFL, throwing for 16 touchdowns and rushing for 8 while leading Atlanta to the playoffs. His total yardage on the ground was 777 for the year, which was unheard of for a quarterback at that point in the NFL. He was one of the most fun players to watch on the planet, and was recognized as such after being named the cover athlete for Madden 2004. Shortly after the announcement, Vick broke his right leg in a preseason game, keeping him out of football for the first 11 games and ruining any chance of Atlanta returning to the playoffs. Furthermore, Vick later faced charges of running a dog fighting ring and spent time in jail for his crimes. While an extreme example, the aftermath of Vick’s career fell in line with the “Madden curse”. Regardless of the negative publicity, the advertising from the potential of the curse is free. Plus, players still consider it an honor to be on the cover of Madden. In fact, in recent years ESPN has televised the official announcement and unveiling. There’s now inherently some intrigue as to who will be cursed and whether he can break it or if he’ll fall victim to it like so many before.

                                                                                                                                 

                                                  

            (Michael Vick, one of the biggest victims of the Madden Curse. Credit: sportsnaut.com)

Where EA truly deserves credit is in its handling of the franchise, as it seems to come up with unique ways to drum up interest for the new games. Madden fever refers to when employees call out sick when the game comes out to play the latest version. Madden Nation was a TV show that featured games of Madden with commentary from expert players around the country. Although definitely nuanced, in some respect Madden was one of the first true eSports (along with games like StarCraft and Counterstrike). Although virtual sport are beginning to rise dramatically in popularity (ESPN even has its own eSports section on its site), Madden was one of the first games to break through to mainstream society. Celebrities play Madden, athletes play Madden, there are probably young adults today who know the name Madden for the game and not for the coach.

                                                                       

                       (One the early competitive gaming televised programs. Credit: ign.com)

Getting back to EA though, there was one astute decision the company made to ensure Madden would always be the behemoth that it is today. Since its inception, Madden has faced off against a number of competitors, from the similar style of games (the NFL 2K series, made by former EA employees) to the bombastic, over the top games (NFL Blitz). That all changed in 2005 when EA signed an exclusive rights agreement with the NFL, giving EA the sole rights to teams, players, and stadiums. This agreement effectively removed any true competition from the playing field. In fact, NFL Blitz returned in 2012, but this time under EA who had since took over the franchise (and in my opinion turned it into a forgettable product). In turn, it may have been a substantial factor in the death of the Sega Dreamcast, as not only would EA not release the annual Madden iterations on the platform, but also removed the 2K series that had been successful previously. Nevertheless, while the consumer loses out, the company prevailed with an outstanding victory, and looking at possible strategic actions for the company to take, this agreement had to be its best.

                                

                       

(Franchises crushed by the exclusive rights agreement. Credit: gamefaqs.com, operationsports.com) 

The question I’m left asking is if there is anything that can be done to slow down or stop Madden. Although I am not one of the individuals who purchases the game annually, I certainly respect EA’s perseverance and commitment to quality. Nevertheless, I cannot help but wonder if we’ll ever live in a world without the annual game. I asked Forbes’ writer Paul Tassi if there was anything the franchise could do to lose its fan base and he responded, “At this point, it doesn't seem like it. Even if they released a completely broken game, their fan base would probably shrug and just play the previous years and wait until next year. It's a golden goose. Unless the NFL collapses, Madden won't.”  That quote led me to ponder whether or not the NFL could truly fall off in favorability. Looking at the NFL today and how it has become a year round league with the draft, fantasy football, daily fantasy, gambling, Madden, and an oversupply of content, I wonder about its sustainability. I’m not anticipating that U.S. is going to forget about football tomorrow (I know I certainly won’t), but I do question if the sport is reaching its peak, and if so will it start a domino effect towards the digital media space.

                                                                   

                        (Madden Gods, please don’t hurt Gronk. Credit: madden-school.com)

Regardless of my thoughts, Madden is still a brilliantly run series. Working with the right individuals and appealing to the appropriate consumers has gone a long way to making the series a hit, and the exclusivity rights agreement simply cannot be understated. The series’ commitment to quality and developing itself in the greater football community has made it the marquee sports’ game in interactive entertainment. It should be used as a model for any aspiring sports series in the market today, and I look forward to seeing how it continues over time.

Sources:

Hruby, Patrick, The Franchise: The inside story of how “Madden NFL” became a video game dynasty, http://espn.go.com/espn/eticket/story?page=100805/madden,

Surette, Tim and Feldman, Curt, Big Deal: EA and NFL ink exclusive licensing agreement, http://www.gamespot.com/articles/big-deal-ea-and-nfl-ink-exclusive-licensing-agreement/1100-6114977/, 1/24/2005