Variety reports on Activision gain of James Bond videogame licence, news on EA
James Bond has switched sides in the videogame world.
In a major shift, MGM and Electronic Arts have ended their deal for the superspy, one of the most popular and profitable licenses in the vidgame bizbiz, four years before it was skedded to end - reports Variety
Lion has signed a new deal with game publisher Activision that extends through 2014 and is worth around $50 million, according to insiders.
In other big videogame news prior to next week's E3 industry confabconfab, THQ has confirmed that it is developing a "Sopranos" game that will include the show's creative team and cast, while Warner Bros. and EA have delayed the "Superman Returns" game from the theatrical release date in June to the DVD release this fall -- a potentially costly move.
EA first published a Bond game in 1998 and extended its deal with MGM and EON Prods. just three years ago through 2010. At the time Bond games were some of the industry's most successful. EA has published three since then; 2003's "Everything or Nothing" and 2005's "From Russia With Love" did moderately well, while 2004's "Goldeneye: Rogue Agents" sold poorly.
Publisher was not able to make a game tie-in for the upcoming "Casino Royale" pic, however, costing MGM millions in license fees. Insiders indicated that decision, along with a shift in EA corporate strategy, led to the two canceling the deal.
"No game means no revenue, and, for the first year, the consumer products team was left high and dry," said one person close to the deal.
Game publisher has indicated a decision to limit its licensed games and focus on original intellectual property, though it has recently invested heavily in a few key Hollywood licenses such as "The Lord of the Rings" and "The Simpsons."
Insiders said Activision was the No. 2 bidder for Bond in 2003, making it a natural to take the license now.
"We looked at a very selective group of potential partners," noted MGM exec veepveep of consumer products Travis Rutherford.
First Bond game from Activision is expected to be a tie-in to the film after "Casino Royale." Publisher has the rights to make Bond games not connected to new films, however.
The 21 Bond videogames published since 1983 have sold some 30 million units overall.
News comes as EA reported earnings on Wednesday and saw its stock plunge 7% in after-hours trading due to lowered guidance.
With weak sales expected across the industry for the rest of 2006 among major shifts in the industry, including a console transition, EA said that for the fiscal year ending next March 31, earnings per share will range between a 15Â¢ loss and 15Â¢ profit on revenue of $2.7 billion-$2.95 billion.
That's below Wall Street expectations and way below the past fiscal year's 75Â¢ per share -- or $236 million -- profit on $2.95 billion in revenue. Those figures are down 53% and 6%, respectively, from fiscal 2005, reflecting the tough time EA and the vidgame industry as a whole are having.
In good news for Hollywood licenses, however, EA confirmed that "Harry Potter and the Goblet of Fire" has sold over 4.5 million units since its November release, while March's "The Godfather" has already sold more than 1 million.
Discuss this news here...