They will use your money to destroy other things you like. I realized this today as I read how Bill Gates plans to launch Halo 3 for the next-gen Xbox the same day the PS3 launches, many months after the XBox 360’s launch. Bill says, “The day Sony launches [the new PlayStation], and they walk right into Halo 3″. He can’t even let the competition have 1 day in the sun, their opportunity to shine ever so briefly.
For EA’s history, just ask Take Two Interactive, the formerly Sega-owned game studio that makes sports games. The NFL2k series of football games had a good reputation the day it was launched on the Dreamcast, but had trouble competing with EA’s heavily entranched Madden series. Last year, Take Two not only put out one of their best efforts in the series, they undercut EA by pricing their game at $20 compared to EA’s $50 price tag. EA arrogantly ignored this difference at first, until sales data forced their hand and made them cut te price a bit to compete. Their reaction wasn’t to try and make a better game at a better price the next cycle, it was scorched earth. EA not only bought exclusive rights to NFL games, they bought exclusivity for college football and even Arena football, ensuring that competitors had NO game to produce that would allow them to maintain a high-quality football simulation engine. They could do it with made up players and teams, but the demand is for real players and people’s favorite teams. EA was out for blood.
For an example of Microsoft’s behavior in the gaming industry, ask Nintendo about Rare Ltd. Rare developed for all Nintendo systems from the original NES to the N64. They developed 8 of the top 25 games for the N64 – even Nintendo themselves, known for their quality first-party games, had only 8 in the top 25. They made 11 total games over the life of the system. Since Microsoft purchased them in 2002, they have released exactly 1 game for the Xbox. It’s apparent they didn’t buy Rare so they could have their games – they bought them so that Nintendo wouldn’t have those games. Embrace and extinguish.
Most companies seem content to compete for a bigger piece of the pie by improving their product and competing honestly. Most companies recognize that a rising tide lifts all ships – even if your slice of the pie shrinks, the pie keeps growing. Microsoft and EA want to be the only ship. They want to use the dollars you give them to sink those other companies whose products you also enjoy. In effect, when you give either company money, you’re funding a campaign to crush the other companies that make products that you like. You may like that game you just bought right now, but in the end, if these bullies have their way, you’ll have less to enjoy in the long run. Don’t do it. Don’t feed these aggressive beasts.