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Did Microsoft Blow $50 Million?

"If you did not know, Microsoft announced at E3 2007 that their version of Grand Theft Auto IV on the Xbox 360 will receive exclusive DLC that the PlayStation 3 version will not be getting. Microsoft paid a whopping $50 million just as a down payment to keep this exclusive. At this time no one but Rockstar knew what this DLC would be and what it would add to the game. Well, now we have all seen the trailer for the new DLC and if you have not, the video is below. It is basically going to add a whole new storyline and allow you to take control of a new character and will be titled "The Lost and the Damned World". Microsoft also announced the surprising cost of $19.99. At this point, without a doubt it seems like a steal but will it be worth the millions for Microsoft? Please read the article and leave a comment with your thoughts."

-TheGamerAccess.com

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Graphics Whore3556d ago (Edited 3556d ago )

Good article, it touches on the basis of what we were all thinking.

In hindsight did they throw away $50 million? yes. For the price of one full original or sequel IP, they chose DLC. That is a waste.

JhawkFootball063556d ago

This DLC is not worth 50 million

PimpHandHappy3556d ago

your wrong

it was worth every penny to have EVERY magazine and website saying the 360 GTA was the one to get because of DLC!

THATS A FACT

f7897903556d ago

I'll take the game any day over DLC.

tatotiburon3556d ago (Edited 3556d ago )

according to IGN: "Downloadable content is about to get a major kick in the ass. The release of GTA IV: The Lost and Damned on February 17 is going to change the way people think about DLC"

"While The Lost & Damned features the same gameplay mechanics and storytelling style of GTA IV, it is as close to a full new game as I've seen for "add-on content." "

The game will have huge sales and probably outsold any full retail game this firts semester...so yes it worth it.

IzKyD13313556d ago

Everyone with an Arcade 360 can't buy it anyway cause they're missing a hard drive, everyone lacking an Xbox Live Gold membership can't buy it, all the casual GTA fans won't buy it, even a large number of hardcore GTA fans won't shell out 20 bucks for 10 hours of gameplay.......case and point, one of the stupidest moves Microsoft made in 2008.
50 million can get you like 3 exclusives, but no, spend it on DLC for a game everyone stopped playing a freaking year ago

Rhoic3556d ago

Why did tato get so many disagrees? No one responded to him or even told him why. Are people seriously that biased? This is more than just DLC. In fact, this is what DLC should be. This adds 10-20 hours of a new story, new weapons, vehicles, etc. for $19.99. That's more than what you get from a retail game. In every category.

Also, there's still another DLC in the works for the Xbox 360.

navyguy213556d ago

For the last time, it that 50 million was a LOAN that MS made to Rockstar!!!! and conditions of that LOAN were to provided the 2 expansions as form of repayment. if the 2 expansions combined dont make 50million, then rockstar has to REPAY microsoft the difference, if it exceeds 50million (which it will) then after the 50million, the standard fee (70% developer/30% Microsoft) applies. Microsoft didnt blow anything because they didnt stand to lose a dime!!!

http://www.edge-online.com/...

Fat Bastard3556d ago (Edited 3556d ago )

They did stand to lose a dime. I read the article you posted and basically Microsoft paid $50 million to make the DLC exclusive. Microsoft will start making 30% of whatever DLC sells, but that won't even come close to making up for what they spent. Rockstar isn't giving Microsoft the first $50 million they make. Basically Rockstar may end up with close to $80 million dollars because of this deal, and Microsoft will have lost like $40 million.

navyguy213556d ago

read the article again, it clearly states "If revenues don't meet that figure, Take-Two will have to return some of the advance" then it goes on to say "What Microsoft did was pay a $50 million advance," he said, much in the same way a big-name author receives a payment in advance of his or her next book.

In other words, Microsoft is confident that Take-Two's portion of the revenue generated by GTA IV content downloads will surpass the $50 million advance paid.

"Microsoft basically said that it's happy to pay [Take-Two] in advance $50 million in revenue that [Take-Two] is going to receive from GTA IV downloads," he said.

Microsoft takes about a 30 percent cut from Xbox Live Marketplace content sales, according to Pachter.

Taking that 70/30 split (publisher/Microsoft) and the $50 million advance into account, Microsoft is apparently confident that GTA IV download revenues over Xbox Live will be at least $70 million." So AFTER the 50mil, the regular fee applies.

BattleAxe3556d ago

Microsoft Blows.................50 million dollars

JOEdANGEL3556d ago

You keep saying DLC like its a piddly little thing. The truth is, these days, most game "expansions" are arriving via download. This isn't an extra map or some horse armor for crying out loud, its a full fledged expansion. Just because you obtain it by downloading it, doesn't change that fact.

As for $50 million being worth it? I guess we'll have to wait and see.

Personally, I wish Microsoft hadn't done that, seeing as how i have the PS3 version.

Bloodwar3555d ago

Everyone is fighting over GTA IV? What the hell for? I am going to buy BOTH expansion packs that only us Xbox 360 owners are going to get. PS3 fanboys and trolls need to go and pay some attention to the PS3 related n4g news. Move on, there is nothing to see here. I am not trolling around. Show a little respect. If you are so jealous, go buy yourself a fricken 360 and stfu.

Thank you.

jammy_703555d ago

the fact is its boring and i cant really see anybody wanting to go back to it and for ps3 owners killzone 2 just kills it!

barom3555d ago

I believe the 50$ million is not just for the DLC but to make it go multiplatform. A wise move from MS even if it doesn't seem so atm. GTA IV would've been a huge system seller for Sony had it been a PS3 exclusive. Even if most of us think it was disappointing, it was with no doubt one of the most anticpated if not the most anticpated game for all consoles. MS paying even 50$ million dollars for DLC would even give consumers a big incentive to buy their version, thereby neutralizing any potential PS3 buyers.

Of course it turned out (in the US anyway) that GTA IV was not the system seller everyone thought it was (either that or people who wanted it already bought a console). Nevertheless I think MS was successful in neutralizing PS3 sales, I mean how many 360 owners would've bought a PS3 to play GTA IV (before knowing how the actual product was). I think quite a few especially if Sony would've bundled them like they did MGS4 (which on a sidenote proved to be a big system seller).

gaffyh3555d ago

Completely not worth it, I don't want to buy and play DLC for a sh*t game. MS could have used that money to fund a game at Killzone 2's level, but no they got rid of Ensemble instead.

Saint Sony3555d ago (Edited 3555d ago )

Can't wait for this. Lucky I have both consoles, I can laugh to people at Killzone2 multiplayer (and story, thanks to mediocre AI) and relax with GTA4 DLC. Good to be gamer.

ps. This DLC will easily bring the 50 million back. 360 userbase and GTA4 player base is enormous.

3555d ago
gaffyh3555d ago

@Saint Sony - Welcome to 2 years ago, KZ2 had bad AI because it was in Pre-Beta, all journalists have now said that the AI is fantastic. Also everyone who's played KZ1 say it had a very good story, so I don't see how KZ2 can be worse?

Are you TheMart's bastard Child?

YonasJonas3555d ago (Edited 3555d ago )

@Saint Sony- Just from a quick read back of your fanboyish comments I'd say you don't own a Ps3. I do however own both, and I could care less about GTA4 let alone dlc. Killzone 2 however is most likely going to take up a lot of my time this year.

Saint Sony3555d ago

Again you Gaffyh know what all the media in this world writes.

How about:

Cons:
- no co-op
- sometimes not natural scripts (again :)
- mediocre AI

One of the first reviews that has come so far states already mediocre AI.

Denial is bad for you.

skimming3555d ago

My understanding is that the $50 mil is guarentee money that MS put up for delivering DLC.

Proceeds from DLC sales will go first to MS until the $50 mil is "repaid" and then any leftovers will go to R*. This spans both episodes.

This arrangement minimizes risk for R* and maximizes value for MS.

MS did not give free money to R*. They did provide a free loan and some risk assumption though; it does mean that MS will promote the hell out of it so they can get their money back. A $1 in marketing will directly net them $x (hopefully x>1) in return meaning that they'll do their best.

And it ends up being a great deal for R* and MS as they don't have to cut the retailers and other distribution costs in the revenue stream (saving to estimate about 35%).

More indication of future game distribution patterns.

Nineball21123555d ago

This might have been a way for Microsoft to try and "push" the concept of digital downloads.

That's what this is basically. A full game that people are buying and they only way to get it is with a DD.

Maybe this wasn't the entire purpose of this, but it does help get more people accustom to the idea of buying games without having the hard copy of it.

s droid3555d ago

although the money could've funded a new i.p, i think microsoft were more concerned with the game going ps3 exclusive, hence the large sum for mere expansions.

if it had gone sony exclusive, it would've cost microsoft alot more than $50 mil in the long run. if some of the members on here looked at it that way, instead of looking at it from the usual fanboy perspective, there would be no need for these silly non-news threads.

gaffyh3555d ago (Edited 3555d ago )

@Saint Sony - Ok lol I'll admit I'm a little too liberal with the use of the word "everyone", but that's just because of where I grew up, the word is used pretty liberally and means "most people", but I don't expect you to understand this dialectical difference, so I apologise. But you constantly go on about having a PS3, so why don't you wait and play KZ2 before you judge it.

Personally i'd rather have the game earlier than wait until they implement co-op, which could easily be implemented via downloadable patch (but i doubt they will bother). Anyway i don't see how anyone could compare having GTA4 DLC, with having a new exclusive for 360 with KZ2 production qualities? There's something seriously wrong with you if you don't want more great games to play, but rather play an old crappy game. BTW I have the 360 version of GTA4, but I will not be buying the DLC, for a couple of reasons

1. It's too expensive, $20 for DLC?
2. GTA4 was one of the biggest disappointments ever, why would I go back to playing that POS, but all the xbox fanboys will disagree with this statement because the game has DLC on their console. The same way if KZ2 was on their console exclusively they would be singing it's praises endlessly. Gotta love that hypocrisy. But PS3 fanboys do it as well, so I don't blame you.

lessthanmarcus3555d ago

interesting situation. I bought GTAIV for PS3 knowing it would get DLC on the 360. I also bought Fallout 3 but for the 360 knowing it would get DLC. Probably did that knowing GTA DLC would suck

KRUSSIDULL3555d ago

Well they will make about 5 million back by sales so they only wasted 45 million ;)

JHUX3555d ago

Personally Microsoft should have used that money for another exclusive game, seeing how a lot of the hardcore gtafans (or exhardcore gtafans I should say), probably won't be as interested as they were after playing the game itself. I personally have no interest, and not because I'm a fanboy, due to the fact that GTAIV was the biggest disappointment in 08(for me). And no, I am not a fanboy, that is my opinion, and think the money would of been very well spent elsewhere (new exclusive game), especially now looking at the line up this year for Microsoft compared to Sony. There are so many other games coming out this year (many is actually an understatement) that I would much rather play than DLC.

And Saint Sony If you read that stuff about the "mediocre AI", then you would know it was a bad translation and was "average AI", talking about your friendly's, not the enemy AI. Also the developer played it on Normal. It amazes me how biased you are, yet have that many bubbles, then the fact you call other people fanboys is laughable. When you state other people are jealous, look how you come off about KZ2, very funny.

^^My Opinion^^.

jessupj3555d ago

A lot of sources say Killzone 2's budget is around the 40 - 45 million mark.

Would you rather and completely new IP in the same calibur of quality as Killzonw 2

OR

So my question to you guys. Would you rather this add on for an old game?

Hit agree for killzone 2 and disagree for the add on. (but anyone that disagrees in my opinion has no sense of reality and has the worst taste in gaming or just a fanboy)

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3556d ago Replies(8)
Nathan Drake3556d ago (Edited 3556d ago )

50 Million Dollars is literally nothing to Microsoft,they've spent much MUCH more on useless things(Seinfeld Vista Campaign,launching an MP3 player called the "Zune" or something like that,etc).So asking whether or not Microsoft blew money isn't the right way to tackle the issue,asking whether or not the DLC will be worth gamers time and money is what we should be looking into/discussing.

Personally,I'm not going to bother with this DLC at launch since GTA4 was a very disappointing and under-delivering experience,once the price comes down to $10 I'll consider getting it.

BRG90003556d ago (Edited 3556d ago )

Agreeing with your first paragraph Nathan, not the second.

As the article discusses, it's important to consider a lot more than how much revenue these two DLCs is going to make Microsoft. Even if they make $10 per sale, it's unlikely they'll take in 50 mil from this. But the exclusivity probably swayed a lot of people to buy the game for 360 over PS3. It probably even played a factor in some people's minds when they were deciding which console to buy for GTA4. Whether it was worth it could be debated into the ground, but it's about far more than just selling these two DLC episodes.

BrianC62343556d ago

This isn't a good time to say $50 million is nothing to Microsoft. Sure it's something. They're laying off thousands of employees. If they could get that money back maybe they could save at least some of those jobs.

rko_kero3556d ago

@ BRG9000,

You dont have to own GTA4 to buy the DLC.

StayHigh3556d ago

"50 Million Dollars is literally nothing to Microsoft"

wow such a stupid statement you xboxfanboys dont know the value of a dollar that why you guys end up with an poorly made system.

I don't care how much money Microsoft have because if you dont spend it wisely it be gone in a blink of a eye..The rich stay richer by being smart with the money..

Clopsy3556d ago (Edited 3556d ago )

@StayHigh

Actually look at the person's name and history. Notice his name is Nathan Drake. That first gives a sign that he is not a 360 fanboy. He actually isn't even a ps3 fanboy either. He is simply stating that Microsoft has thrown away tons of money before. Such as his examples.

IronAva3556d ago

I do not think the 50 million was just for DLC. I think part of that was to sweeten the deal to get the game on the system. If you take a step back and think about it, Take 2 needs money and what better way to get it then to agree to a small(large) donation from Microsoft.

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003556d ago

let them spend their money how they want and on whatever they want.

darthv723556d ago

To break even they need to sell 2.5 million copies. How many copies of gta4 have been sold on the 360 worldwide? Will there be 2.5 million (or more) people willing to dl this new content?

Harryhit43556d ago

Don't forget about the second DLC pack.

SynGamer3556d ago

I surprisingly think the DLC will sell well over time. Castle Crashers sold over a million i believe and it cost 1200 MS points ($15) and it only took a few hours to beat. The GTA IV DLC is adding roughly 12+ hours of story to play through...so i could see this selling well, over a million, but perhaps not quite the 2.5 that MS needs for it to break even. And that's assuming MS gets 100% of the profits from the DLC, which i don't think it is...

pwnsause3556d ago

theres no doubt it will sell well, but still, that money could of been used for a new IP.

IronAva3556d ago

I think Microsoft got what they wanted out of this deal. They got the next big GTA game day and date with Playstation 3 that is all that matters to them. The song "Anything you can do I can do better" comes to mind.

One other thing, back in the day when it was Nintendo and Sony people had a fit that all Nintendo had was 1st and 2nd party companies making games for them. Sony was king becaues they had massive 3rd party support. Now that Sony is on the 1st and 2nd party kick and Mircosoft is on the 3rd party kick, its all of a sudden uncool. I am not trying to start a flame war as I have both systems and I play any and everything that "I" like. (see what I did there).

People play games not systems

GT/PSN: IronAvatar

DJ3556d ago

No matter what the sales are, Rockstar has been compensated immensely, so it's no loss for them. But Microsoft doesn't receive all $20 for every copy that's sold.

But I'm sure at least 3 or 4 million will download the DLC, so long as it truly is Standalone (doesn't require GTA IV Disc).

JOEdANGEL3556d ago (Edited 3556d ago )

Yeah they probably could have invested in a new IP but that doesn't guarantee that it would succeed. Most new IPs these days haven't been doing too well. If they spent $50 million on a new IP that flops, that gets them nowhere. Instead they invested in a proven franchise, that while not guaranteeing profit, is a far less risky venture in an unstable economy.

INehalemEXI3556d ago

If it is standalone I might would get it for my 360 except I don't have room on the HDD... :( got to upgrade one of these days.

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