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Take-Two and Microsoft: What's the 'Real Deal'?

Xbox Evolved writes: "Still $50 million for two ten-hour add-ons with a bunch of new vehicles, weapons, and story is quite a premium. Naturally it leaves one to believe that somehow, Microsoft and Take-Two aren't really giving the full story, but then that would leave them open for questioning by numerous financial institutions, and specifically the SEC. Maybe there isn't anything else to it and they just spent ridiculous amounts of money for no reason, after all they bought Rareware."

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butbutbuttehcell3534d ago

"there isn't anything else to it and they just spent ridiculous amounts of money for no reason"

They do realise that it's already sold nearly 2 million and so has already turned a profit, not to mention the amount who got it on the 360 because they wanted the option to get this later.

Cartesian3D3534d ago

with 50 million you can make a completely new AAA IP ..

for sure GTA DLC was a GEM(biggest DLC ever) and sold around 2 million(I dont know the exact number,I just use your statement) but the problem is GTA DLC didnt make an impact as big as MS wanted..

imagine a NEW exclusive IP from rockstar with whole new gameplay,story,.. and compare it to a DLC! ..

sony did a better job, make an agreement with R* for developing a new IP exclusively for PS3.

butbutbuttehcell3534d ago

You say that, but you can't just make AAA games just because you throw cash at it. Making new IP's is risky. What if they made a game that was good but bombed at retail (like Okami - which was a great game). With GTA this is never gonna happen cos it's probably the most established franchise in gaming. So your argument doesn't really hold up. They've nearly made there money back already with this, it was a safe bet and it's paid off.

"for sure GTA DLC was a GEM(biggest DLC ever) and sold around 2 million(I dont know the exact number,I just use your statement) but the problem is GTA DLC didnt make an impact as big as MS wanted.. "

Lol, again, what are you talking about? It's proved that sizeable downloadable episodic content is a viable platform of distribution for developers. MS said this has broken revenue records on LIVE. You don't think that's the impact they were after? Exactly what impact do you think they wanted since you know what they wanted (apparently).

"sony did a better job, make an agreement with R* for developing a new IP exclusively for PS3."
Sony have done a better job before you even have a CLUE what the game is? That's odd. Like I said before, this new IP could bomb at retail, and if that happens, they'll have lost a lot of money. What MS have done is ensure profits, test episodic content on LIVE (successfully) with very little risk.

cayal3534d ago

"It's proved that sizeable downloadable episodic content is a viable platform of distribution for developers. MS said this has broken revenue records on LIVE. You don't think that's the impact they were after? Exactly what impact do you think they wanted since you know what they wanted (apparently)."

Microsoft wanted people to buy GTAIV on their console and use DLC content as a incentive to do so. That failed, the 360 version didn't come close to selling what they thought the DLC would get them. Not to mention the number of people who didn't like it/traded it back (and this is both consoles).

II Necroplasm II3534d ago (Edited 3534d ago )

Yes New IP's like HAZE

Why do people think that MS only has $50 million to spend and no more money for New IP'S later?

PirateThom3534d ago

Because they don't have unlimited funds to use on their gaming division?

II Necroplasm II3534d ago (Edited 3534d ago )

Anyways anything in the gaming biz is a risk. But I think everyone knows that Microsoft thought that GTA4 would have been way more of a better game, I am sure all the GTA fans was thinking that too at the time

Shortstop3534d ago

"You say that, but you can't just make AAA games just because you throw cash at it."

Of course you can. You think they just appear out of thin air? AAA games are almost always well funded. $50 million? I remember back in the day when FFVII was advertised that it was the first game to cost $1 million. I'm pretty sure with $50 million you will get a blockbuster game.

Just hire the right people at the top of the project.

FreestyleBarnacle3534d ago

Is it not possible that much of the money was to ensure that it was released on both platforms at the same time? How many conversations do you think there were where people talked about getting a PS3 to play GTA IV and someone else saying that they could save hundreds by getting an XBox to play it on instead. Without some of the big exclusives 'defecting' there were swathes of people for whom an XBox wasn't even an option. Fifty million bought access to many of those people.

DelbertGrady3534d ago

I'm sorry but is there any real proof to the "$50 million" or is it just a rumor?

kevnb3534d ago (Edited 3534d ago )

microsoft made them a deal that benefited both of them, end of story.
PS, I hate those McDonalds ads!

gaffyh3534d ago

I dunno if this is true, but I also remember reading somewhere that MS didn't only pay $50 mil for the DLC, they also paid a few million for advertising GTA4 as on Xbox 360.

+ Show (8) more repliesLast reply 3534d ago
Jayfatyboombaty3534d ago

They haven't actually sold 2 million, in fact the only solid facts about it is that Microsoft has said that the game is the fastest selling piece of premium DLC ever on XBL. For all we know they have, but no such official statement has been made, only analysis speculation.

Grannyvukka3534d ago

I was under the impression that MS did not just give them the money, but in fact it was a loan and therefore ms had to be re-embursed. I could be wrong, but that was what I read. I can't see MS just giving it to them willy nilly. I think they may have to pay MS back, but there is a system in place that ensures that both companies profit from it very well. I wouldn't be surprised, actually, if MS take the majority of what is made by the dlc. Rest assured they would have a large percentage of Rockstars takings from this to compensate.

I know I read from several sites it was a loan from MS, so in my opinion, MS basically will collect back what they loaned and Rockstar will then take most of the profits thereafter.

Microsoft Xbox 3603534d ago

A waste of money IMO. They should've invested that money into a new IP from Rockstar or maybe another developer. Maybe fund their already hurting 1st/2nd party studios?

KionicWarlord2223534d ago

how was it a waste of money? there going to make there money back and remember this is the first piece of dlc.

Microsoft Xbox 3603534d ago (Edited 3534d ago )

Is that a rhetorical question? The DLC excludes all non-harddrive 360 owners. There goes the potential customers. Do you know how much its going to cost them to even play this DL content? Well 60 bucks for the game, another 70-150 bucks for a hard drive, and finally 20 bucks for the DLC. A harddrive-less 360 owner on average will spend over 150 alone just to play this DLC. A DLC packed with more repetitive missions and a new character. Thats got to be a joke. Investing into a new IP or maybe a true sequel to the GTA series to retail on disc would've made them a lot more.

To top things all off, creating DLC is just stalling progress for Rockstar. Thanks to MS again, we all have to wait longer for the next GTA sequel or the next new IP.

nix3534d ago (Edited 3534d ago )

i don't think it was all about making money. sure they'll get some of their money back but it didn't do wonders for them. it was expected that 360 version of GTA4 was going to sell 2:1 or 3:2 against PS3 because there are more 360s and the DLCs were suppose to push it even more in 360's advantage.

sadly, to MS' bad luck, the game sucked big time. only over 1 mil downloads compared to around 6 mil owners shows it too. there's a chance that people might lose interest for the 2nd DLC even more.

No Way3534d ago (Edited 3534d ago )

Some of their money? Microsoft would get back all there money, plus a ton.

For example. Each download for TLAD cost $20, now if what butbutbuttehcell says is true, and two(2) million bought the DLC.. then
20 * 2,000,000 = $40,000,000 And, that is just the FIRST(1st) DLC.
You do the same for the second DLC than that is approximately $80,000,000..

About a $30,000,000 profit.

aldesko3534d ago

I don't think MS gets all the money.

+ Show (2) more repliesLast reply 3534d ago
ionicmoose3534d ago

The article states 360 version has sold over a million more than the PS3 version, but didn't the very recent article on Take-Two's financial meeting confirm a 50/50 split in worldwide sales?

KionicWarlord2223534d ago

yeah . xbox 360 sold 5.65 ps3 5.44 . pretty much the same.

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