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GDC: EA's Schappert 'Disappointed' With Infinity Ward Suit
by Kris Graft
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March 10, 2010
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At GDC on Wednesday, Electronic Arts COO John Schappert took a break from talking about the continuing importance of disc-based product in order to express disappointment with the legal battle between Modern Warfare developer Inifinity Ward and its parent Activision.
“I would just say, I'm sure there are two sides of the story,” said Schappert. “[But] I'm disappointed on a couple fronts. ... To think [former Infinity Ward heads Vince Zampella and Jason West are] going to be spending their future dealing with litigation and lawyers rather than crafting the next great experience, I don't think that's good for them, I don't think that's good for our industry.”
Schappert added, “I hope they find a way to make games and focus on that during this period.”
He said that another disappointment to him is that, rivalries aside, the future of Modern Warfare is in question. “It doesn't feel like anybody wins,” he stated.
Schappert, who referred to Activision numerous times as the “mothership,” said the publisher, EA's primary rival, would rather litigate than make games, and that it uses litigation as a revenue stream. Activision sued developer Double Fine in June last year over the rights to Brutal Legend, a game that Activision dropped and that EA Partners subsequently picked up for distribution. Activision and Double Fine eventually settled and the game released.
Activision recently fired Infinity Ward's West and Zampella, accusing the two of “insubordination” and breach of contract. West and Zampella went on to sue Activision for $36 million in royalties and compensation.
Aside from Activision jabs, Schappert said the idea that the industry has moved on from disc-based games is a “misnomer.” Anyone who follows NPD of GfK retail charts would know this, but Schappert said some companies and industry watchers get ahead of themselves when calculating exactly when the industry will be going all digital. “I think the reality is that that's not tomorrow,” he said.
EA is active in non-disc-based business strategies. The company regularly releases paid digital downloadable content to complement its disc-based games. BioWare's Dragon Age generated $1 million from DLC in just over a week, EA said in November. The publisher also recently shut down its disc-centric Pandemic Studios and then acquired the Facebook game maker Playfish for $300 million.
But physical product often serves as a link to deliver digital content. Right now, EA implements a hybrid business strategy. “What I think we're seeing is an influx of DLC as an extension of these games,” he said. DLC also gets players to spend more time with a game. “... But it all starts with a shiny disc,” he added.
Schappert said that in the near-term, the “biggest blockbusters” in the games industry will be disc-based games with online features. “Publishers need to be thinking of a long-term relationship with their consumers,” and this can be established through digital extensions of physical product. “I think the days of ship it and forget it are behind us now.”
He said that with mobile, consoles, PC, social networking and handhelds, publishers like EA have their work cut out for them. “What's challenging right now is that there are a plethora of platforms,” he said. “...At the same time there's more opportunities than ever before.”
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Actually, a settlement was reached and the terms were undisclosed. I can see it playing out both ways... Activision decides to cut their losses after not getting the injunction and pays a bit to get out of it, or Activision threatens to continue to pursue the case despite losing the injunction and EA pays them a bit to drop it and save both companies the hassle of years of discovery and filings and hearings.
I would be surprised if EA didn't want to get onto their (West/Zampella) good side in hopes of benefiting from their next venture. So why would Schappert speak up at all if he was not going to take their side?
ATVI saying that they were investigating West/Zampella's talking with other publishers and specifically naming EA probably was designed to specifically make any sort of EA deal with them less palatable. If W/Z sign on with EA, it would look like there was some discussion before the fact while they were still at IW. especially if it happens in the very near future..
they really need to have their PR people come up with a new politically correct, inoffensive word.
However, if they actually do battle it out with Activision, and come out on top, it will set a precedent - and individual creators will benefit from it. Maybe it won't help W/Z's careers, but as with all pioneering things it will help those who follow. Why should any game developer feel beholden to a game company? That's like the way the movie industry worked in the 1940s - when the talent was basically controlled by the major studios in a big factory, until the talent figured out, with the coming of United Artists, "Hey... we're the ones who make this stuff!... These deals should be on our terms."
The most funny thing, is that Activision was founded when Atari refused to credit authors... Activision credited them all happily...
We need that old Activision back... The one that did great gamers and attracted good minds that loved the company.
IMO, there are far worse things for the industry than developers attempting to get what they've worked for and potentially have an agreement for.