What is Digg?Sponsored by Best Buy
Best Buy finds gold in Iowa. view!
youtube.com/bestbuy0 - Best Buy employee, Danielle Kelly, sings her way into holiday campaign.
197 Comments
- STKD, on 10/11/2007, -9/+117Yes. I bet Microsoft never did the math, either.
/sarcasm. - bryants, on 10/11/2007, -38/+118Not quite right. Every single disc sold of any game on the xbox 360 console must go through certification. And guess what every single game sold Microsoft reaps roylaties. So every single game of GTA IV will make microsoft money. They are putting themselves in a position that states get our console because GTA IV will have more content. And this is a smart move. Microsoft knows GTA is a system seller they have to make the game look more appealing for their system. And in doing this they're going to attract more people who were on the fence for this game. So you'll have to lower your forcast on how they're going to recuperate their losses. They'll make money from this deal. T2 has already made money from this deal. So from the looks of it this is a Win Win for microsoft and T2 but a lose for Sony.
Personal rant:
This is a dick move by Microsoft. And just goes to show you that if you have the money you can buy your way in to the hearts of millions. Microsoft learned a lot and put their learnings to use. And that is not a good thing. They learned to buy what sells systems. Buy studios that have a large fan base. Buy poplar franchise rights. Throw money at annouced games so they too can reap the benefits (Assassin's Creed anyone? I despise these moves. Sure I have a 360 and I love th console. I still feel dirty. I'd rather have Microsoft throw their game studio at creating games to compete with 'the next big thing'. That kind of thought can produce innovation.
I mean come on! It's painfully obvious what Microsoft is doing to the game industry. If they manage to throw Sony out of the runnings, then they'll target Nintendo. Which is actually their target now if you've read any recent interviews. They want the casual game market. Now they want to position themselves as a casual-hardcore gaming machine so you can buy the hot blow-up-by-learning-from-endless-mini-games game. I for one do not welcome our new gaming overlord. - inactive, on 10/11/2007, -26/+85For those that can't see it, scroll down to near the bottom of the page. This is absolutely insane. Going with the retail price and not the profit margin, which would be MUCH lower, if anything at all (and hence many many more units) Microsoft would need to sell 83,472 premium Xbox 360 consoles for GTA IV downloadable content alone just to recoup this cost and that's not including bandwidth charges or anything else!
Fifty MILLION dollars eclipses even some of the more insane game budgets out there (Gears of War only apparently cost $10m to produce) so expect this content to carry a huge cost when it hits the marketplace. Indeed, it better be good and add some serious replay value otherwise Microsoft are going to be facing a heavy loss here. - inactive, on 10/11/2007, -3/+59I linked directly to a transcript because if you do that there is NO spin whatsoever. There's no point linking to a fansite because there will be criticism or favouritism and it's stupid to link to random news sites because when this hits the homepage they'll be making money from ad revenue for a story they did no work to find.
- inactive, on 10/11/2007, -15/+62How is this any different from what SONY did to SEGA during the Saturn years? SONY bought studio after studio to build up their 1st/2nd party games portfolio, but now MS does it and all of a sudden it's a "dick move". My how selective we are.
- simonpainter, on 10/11/2007, -3/+37I would love to think that Microsoft "didn't do the math" on this one but it's highly unlikely that a bunch of diggers know more about marketing strategy than the mighty war machine of MS. It works like this... they want to shift platform and the also want to shift content. They get $$'s for every bit of content they shift and that is the money spinner over and above the $$'s they get from the platform. The only reason they make the hardware is because then they get to control who can write content for it. A really good lure of some good content will cause people to go buy the platform and once they have the platform they will go get more content.
A few years ago Sony did the same. Remember the 1 year exclusive on GTASA on the PS2? That was so that more people would buy a PS2 to get early dibs on the game rather than waiting for it to come out on the PC or whatever. This is no different.... grab the gamers by the balls and their hearts and minds will follow. - zeklown, on 10/11/2007, -3/+30@Anorhc
Um..
Sony Corporation (ソニー株式会社, Sonī Kabushiki-gaisha?) is a Japanese multinational corporation and one of the world's largest media conglomerates with revenue of $68.39 billion (as of 2006) based in Minato, Tokyo. (Source: http://en.wikipedia.org/wiki/Sony)
Microsoft Corporation (NASDAQ: MSFT) is an American multinational computer technology corporation with global annual revenue of US $44.28 billion and 76,000 employees in 102 countries. (Source: http://en.wikipedia.org/wiki/Microsoft) - dreadstar, on 10/11/2007, -3/+2550 million for DLC?
I shudder to think what Microsoft offered, or what Take 2 asked for, to make GTA IV 360 exclusive. - kenvsryu, on 10/11/2007, -8/+29Another year in the red for Microsoft Gaming.
- synaesthesia, on 10/11/2007, -1/+22Congratulations Rock*, $50 million is probably enough to buy a rocket and launch Jack Thompson into the sun
- samdu, on 10/11/2007, -1/+22And just because Microsoft has billions upon billions of dollars in cash doesn't mean that the gaming division has access to all of it. Each division must operate within the confines of a budget.
- McTendo, on 10/11/2007, -8/+28I know! I am disgusted at M$$$$$$$$ for forcing them to say yes. I read an article that stated they hate and are even allergic to money and were forced to roll around in it while M$$$$$ laughed and spat on them from within their jewel-encrusted, anti-linux/pro "mac abortion" abomination of a stainless steel, glass-floored helicopter with gold trimming and night vision.
- inactive, on 10/11/2007, -0/+20 neiltc13, he had better be kidding. Diggs terms of use prohibits what he suggested. You're supposed to link to the source, like you did. And I thank you for it.
- WhereAmI, on 10/11/2007, -5/+24@lardoandkeg (#7227883)
New here?
May 31, 2007
Yup. - EochaidRiata, on 10/11/2007, -2/+20#1 best selling console game of previous generation: GTA San Andreas
#3 best selling console game of previous generation: GTA Vice City
#4 best selling console game of previous generation: GTA 3
$50m was worth it. - Murphious, on 10/11/2007, -2/+18I'd imagine that buying exclusivity on the whole game would cost a lot more than buying exclusivity on just downloadable content. Look at it this way; They paid $50 mil for downloadable content.. How much would they have to pay for the entire game to be a console exclusive?
- miyamotofreak, on 10/11/2007, -2/+18This has been completely misunderstood. From K Baird of VGN:
This appears to be revenue deffered. This is not the same as Microsoft giving them 50 million. It looks more like Take 2 needs money, and said to Microsoft, "We'll give you exclusive rights, but you have to give us $50 million in advance." Which means, Take 2 is not going to get any profit from the episodic content for the first $50 million. And if they don't sell $50 million worth, they still owe Microsoft the money.
It's a big gamble on Take 2's part. If GTAIV doesn't do as well as they hope, and/or gamers don't buy the episodic content, Take 2 might go belly-up. AND it would make Microsoft a principle owner of their debt. Allowing them to purchase the company at a cheaper price.
You have to read between the lines when gaming websites take financial information and say things like, "Microsoft buys exclusive rights!" Which is not what happened here. Take 2 borrowed money from Microsoft in exchange for those rights. That's a big difference, and doesn't bode well for Rockstart and Take 2. - lava, on 10/11/2007, -27/+43I think that's pretty smart of them. I ended up buying a ps2 for GTA:SA. When the new GTA comes out, I'm going to have to buy an xbox 360.
"Personal rant:
This is a dick move by Microsoft."
Poor Sony, they don't have any money. - rlutterb, on 10/11/2007, -5/+18Kids, this is called good business. If it doesn't work (which it will), so what?.. it's $50mm of billions in the bank. MS will still be in business.
Say what you will however, big risks and big rewards is why Bill Gates can now give billions to humanitarian causes. - spling, on 10/11/2007, -8/+21@zeklown
Is the Net income not a more accurate thing to be looking at here?
Sony Corporation Net income: $1.042 billion USD (2006)
Microsoft Corporation Net income: US $12.6 billion (2006) - EvilWalksWithMe, on 10/11/2007, -4/+17No one cares what you've pre-ordered.
- skyfire1, on 10/11/2007, -1/+12And I thought Oblivion downloadable content was expensive.
- Repeater2000, on 10/11/2007, -1/+10You are going to play Psychonauts on your PS2?
The game MS funded and spent close to 15 million dollars on and got close to nothing in return?
"they should use that money instead to hire new programmers/animators and make new studios to make new games"
That worked wonderfully, you also might want to google "True Fantasy Live Online" when you get the chance. - loganhid, on 10/11/2007, -3/+12I'll laugh my ass off and probely cry if this new GTA turns out to be an absolute *****
- dpl_, on 10/11/2007, -2/+11Lardoandkeg is just another blog spammer.
- SomeManbeapig, on 10/11/2007, -4/+13stupid fanboyism crap
- MoDubbz, on 10/11/2007, -1/+9how does honesty play into this? you base honesty on your own sense of morality, but business is a whole different animal. what MS is doing is within the rules and laws. its not like they are holding Take 2 family hostage and saying "give us DLC or else". come on man, this is how companies operate; acquisition
- dpl_, on 10/11/2007, -1/+9lardoandkeg: "I found a site that posted the story so you dont have to dig through the transcript."
Sure you just found a random site, not one you've been spamming like crazy on Digg. - MatttK, on 10/11/2007, -0/+8ctrl-f
- Zoxy, on 10/11/2007, -2/+10search episodic content and it will refer you to the quotes.
Evan Wilson - Pacific Crest Securities
Thank you. And as it relates to the deferred revenue chunk associated with the episodic content on X-Box 360, you can see that $25 million of that moved into short-term deferred. Could you give us any sense of when that’s going to hit the P&L? Will we see $25 million at one time and then the second 25 or will it be a slow bleed?
Lainie Goldstein
The first 25 is for the first episodic content package that’s supposed to go out and that is in March of ’08. That’s why it moved into current because it’s in the next 12 months. The second 25 will be for the second episodic, the episode, and that will be later in fiscal ’08. - EvilWalksWithMe, on 10/11/2007, -4/+12Hahaha...
See that? That was me laughing at the lunacy of your comment. - smurf22, on 10/11/2007, -5/+13When you have to pay 50 million for DOWNLOADABLE content you know somethings up.
- simonpainter, on 10/11/2007, -1/+8Sony had a one year exclusive on PS2 for GTASA and that was all that Rockstar would give them. It's not in an game manufacturers interest to grant exclusivity forever because some day you may want to port all that code which has already been written and paid for to another platform and squeeze a few more bucks out of it. To grant exclusivity to MS they would have to look at how much they could have sold in worldwide PS3/PC sales (and any other format they can run it on).
- inactive, on 10/11/2007, -4/+11I'm hoping lard was kidding
- Bodhesatva, on 10/11/2007, -4/+11I don't see it. Someone quote it. I'm willing to believe it, but this is a long statement full of stuff that's effectively impenetrable for me.
Just point it out. A search for "50" and "million" and "Microsoft" and "Grand" did not help me find this, so I'm a little suspicious. - TenebrousX, on 10/11/2007, -1/+8With this and Star Wars Force Unleashed, I might end up buying an Xbox 360
- bIuebonics, on 10/11/2007, -1/+8"When you have to pay 50 million for DOWNLOADABLE content you know somethings up."
yea, business and marketing strategy. - STKD, on 10/11/2007, -0/+7Short answer? Nope. Not possible. Already licensed up.
- pronouncable, on 10/11/2007, -1/+7Jack Thompson just had a heart attack.
- charityjustice, on 10/11/2007, -0/+61. MS isn't paying $50 mil to help GTA4 sales on the 360. MS is paying $50 mil to promote the 360 itself. Folks comparing this total to individual game development budgets are completely missing what is going on here.
2. MS would not have paid $50 mil unless they believe they stand a good chance of returning that much and more from the move. All the master economists second-guessing this move while living in their parent's basement are only staying there by choice I suppose - ucdbunny, on 10/11/2007, -12/+18with microsoft buying up studious and paying for exclusives will only hurt gaming in the long run
- inactive, on 10/11/2007, -0/+6It's just a transcript, no reason not to trust it. But, if you want to listen to the actual conference call, go here:
http://ir.take2games.com/medialist.cfm - Piggycow, on 10/11/2007, -1/+7How is this a bad thing? Smart move to get more exclusive things to 360 by microsoft
- rvreeland, on 10/11/2007, -0/+5hasn't Microsoft been losing money anyway on the 360 despite the success of the console? I don't think they mind to spend $50 mil for this, they're probably thinking the ends will justify the means, and this is just another move to solidify their place in the market.
- inactive, on 10/11/2007, -0/+5The content was announced as Xbox 360 exclusive on the same day the game was announced back at E3 in May 2006. Don't blame anyone but yourself for trusting misinformation.
- kelbear, on 10/11/2007, -2/+7How is this bad for gaming?
This is a studio getting rewarded for having a history of making games that people want. So they're getting money thrown at them as a result. Not really headlining stuff here. - Wo1ke, on 10/11/2007, -0/+4I was so upset when true fantasy never came out! :(
- aggies11, on 10/11/2007, -4/+8Smart move by M$, and contrary to what some may say, financially probably wise also.
While they likely won't make the money back on GTA IV sales alone, they are paying for exclusivity. What exclusivity gives you, hopefully, is a reason for people to have your console over someone else's. What that does is give you a higher install base. The larger the install base, the more games that are sold over all (all titles, not just one). Since Microsoft makes money on every single game sold for the 360, if the install base increases enough from this move, then they will financially be able to recoup the costs, possibly more.
How much of a draw will the exclusive downloadable content have, is a good question though. This move is a gamble, a smart gamble, but a risk none the less.
Aggies - apoc06, on 10/11/2007, -1/+5does anyone know if microsoft ever stated that the gta IV downloadable content will be free, or at cost to the consumer?
- dRuNk3nIrIsHmEn, on 10/11/2007, -0/+4We all thought it was expensive. But we still bought it.
We will all think the GTA IV content is too expensive. But we will still buy it.
It's sad, but true. -
Show 51 - 100 of 197 discussions
© Digg Inc. 2009
— Content created and posted by Digg users is