AOL a winning factor in EA's Potter deal
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EA said the strength of its studios, the company's reputation as a top-quality game developer and its global distribution system were the reasons for edging out suitors Microsoft (msft) and Vivendi (VVDIY) in the deal. But sources tell ZDNet News that the pending merger of America Online Inc. and Time Warner was also a major factor.
EA, based in Redwood City, Calif., said Thursday it had also secured rights to develop and publish Harry Potter games for the Internet. The terms of that deal, with Warner Bros. Pictures, were not disclosed.
Warner Bros. Pictures, a Time Warner Inc. (twx) property, is planning a Harry Potter movie. While the release date of the movie has not been announced, EA officials said the company is working closely with the book's author, J.K. Rowling, and the movie director, Christopher Columbus. The game may be released in conjunction with the movie, the game maker said.
Late last year, EA signed a five-year agreement to create and deliver online games and interactive entertainment for America Online Inc. (aol), a deal that promises access to 19 million AOL users. The deal helped EA in getting rights to the games, which could also appear on the AOL Games Channel, sources said.
"The opportunity is tremendous," said Ten Lannan, president of gaming research firm Fairfield Research, "especially when you consider that EA can piggyback on the series, which has sold something like 30 million books."
But the game itself will have to live up to expectations, Lannan said. "We are long past the time when a popular title would carry a game."
Jeff Brown, director of corporate communications at EA, said the actual audience for the Potter books is a good match for EA's demographics.
"The latest Potter book is 734 pages, which suggests that your average kid will either not be reading this or won't be reading it alone," Brown said.
Analysts say recent moves by gaming industry leader EA is a good indication that the audience is shifting from niche to mainstream.
EA has been aggressively trying to expand its influence. The deal with AOL, the Potter game and upcoming online gaming efforts by EA.com are evidence of that.
"Online is the future of gaming, and EA's efforts with the Potter books and online will help it tap the mass market," said Jeremy Schwartz, senior analyst for media and entertainment at Forrester Research.
Forrester numbers indicate that only 25 percent of the 54 million U.S. households online play games once a week.
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