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."


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Graphics Whore5516d ago (Edited 5516d 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.

JhawkFootball065516d ago

This DLC is not worth 50 million

PimpHandHappy5516d 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!


f7897905516d ago

I'll take the game any day over DLC.

tatotiburon5516d ago (Edited 5516d 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.

IzKyD13315516d 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

Rhoic5516d 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.

navyguy215516d 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!!!


Fat Bastard5516d ago (Edited 5516d 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.

navyguy215516d 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.

BattleAxe5516d ago

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

JOEdANGEL5516d 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.

Bloodwar5516d 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_705515d 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!

barom5515d 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).

gaffyh5515d 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 Sony5515d ago (Edited 5515d 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.

5515d ago
gaffyh5515d 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?

YonasJonas5515d ago (Edited 5515d 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 Sony5515d ago

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

How about:

- 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.

skimming5515d 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.

Nineball21125515d 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 droid5515d 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.

gaffyh5515d ago (Edited 5515d 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.

lessthanmarcus5515d 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