Sega ESPN Ties Deal with Take 2

Sega's ESPN titles to benefit from Take 2's high quality global marketing.

Take 2 has announced a "binding letter of intent" with Sega to co-publish and exclusively distribute on a worldwide basis all SEGA ESPN Videogames sports titles (see them all in action here).

The news quashes the uncertainty that had been surrounding the future of the ESPN line-up of late.

The ESPN Videogames titles, which are developed and marketed by Sega-owned Visual Concepts, will be co-published under the SEGA/Global Star Software label. The products will be exclusively distributed through Jack of All Games in North America and Take-Two Europe for international territories.

We think the Rockstar label would go down better with these games - but Take 2 thinks its Global Star label (currently of Serious Sam: Next Encounter fame) is the answer.

The multi-year co-publishing and distribution agreement includes a provision for Take-Two to further extend its participation in SEGA's sports game business and all associated intellectual property for current and future gaming platforms.

"We believe this exclusive relationship with SEGA is a great opportunity for Take-Two," said Paul Eibeler, Take-Two's President. "We have tremendous respect for the critically acclaimed properties that Visual Concepts has created and we are confident that our global sales and distribution capabilities provide the resources that will fully support these products."

"The combined efforts of SEGA and Take-Two will create an exciting and powerful partnership that is sure to heighten the level of aggressive competition in the growing sports game segment," said Hisao Oguchi, Representative Director and President of SEGA Corporation.

"We are excited to have Take-Two bring their second-to-none distribution power and proven experience reaching the mass market to the ESPN Videogames franchise we've built with SEGA," said Greg Thomas, President of Visual Concepts. "We are proud of the quality of our games and the loyalty of our fans, and we look forward to being able to reach a whole new audience."

A significant part of Take-Two's strategy is to gain market share by offering extremely high quality products, supported with aggressive marketing and value pricing. "We plan to expand the audience for ESPN Videogames' sports titles by applying a variety of proven marketing techniques," said Mr. Eibeler.

He elaborated: "We are also adding the compelling element of value pricing to this high quality line, creating a significant point of differentiation for both core and casual gamers. We believe the recent console price cuts are bringing new consumers into the interactive entertainment market, and sports titles will be a meaningful part of their software purchases. Finally, with Sony and Microsoft not publishing sports titles this holiday season, there is a significant competitive opportunity for ESPN Videogames titles. The combination of these factors should expand the overall market for sports titles." We'll have more on the 2005 range soon.

Adam Doree
Director, Kikizo.com