1030°

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
Nick212004 - contributor
Published: 338 days 9 hours ago | Article | Xbox 360 | Gaming
 
 

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Graphics Whore - 338 days 9 hours ago
1 -
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.
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JhawkFootball06 - 338 days 9 hours ago
1.1 -
This DLC is not worth 50 million
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chaosatom - 338 days 8 hours ago
1.2 - If MS only bought First party Studios.
/
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PimpHandHappy - 338 days 8 hours ago
1.3 - @football
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
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f789790 - 338 days 6 hours ago
1.4 - Wouldnt people prefer an exclusive game from that $50million?
I'll take the game any day over DLC.
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tatotiburon - 338 days 6 hours ago
1.5 -
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.
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IzKyD1331 - 338 days 6 hours ago
1.6 -
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
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Rhoic - 338 days 5 hours ago
1.7 -
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.
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navyguy21 - 338 days 5 hours ago
1.8 -
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/...
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Fat Bastard - 338 days 4 hours ago
1.9 - @navyguy
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.
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navyguy21 - 338 days 4 hours ago
1.10 - @Fat Bastard
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.
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BattleAxe - 338 days 3 hours ago
1.11 -
Microsoft Blows.................50 million dollars
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JOEdANGEL - 338 days 3 hours ago
1.12 -
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.
1.13 Bloodwar | 338 days 2 hours ago - User only got 1 bubble - Show
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jammy_70 - 337 days 22 hours ago
1.14 - yes thet have
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!
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barom - 337 days 22 hours ago
1.15 -
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).
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gaffyh - 337 days 22 hours ago
1.16 -
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.
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Saint Sony - 337 days 22 hours ago
1.17 - MS did blow 50 million like all of us did blow lots of cash when we bought PS3.
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.
1.18 Kutaragis Revenge | 337 days 22 hours ago - deleted by mod -
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gaffyh - 337 days 21 hours ago
1.19 -
@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?
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YonasJonas - 337 days 21 hours ago
1.20 -
@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.
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Saint Sony - 337 days 20 hours ago
1.21 -
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.
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skimming - 337 days 19 hours ago
1.22 - money is guarentee against future earnings
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.
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Nineball2112 - 337 days 18 hours ago
1.23 -
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.
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s droid - 337 days 18 hours ago
1.24 - not really a waste
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.
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gaffyh - 337 days 17 hours ago
1.25 -
@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.
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lessthanmarcus - 337 days 15 hours ago
1.26 - hmm
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
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KRUSSIDULL - 337 days 14 hours ago
1.27 -
Well they will make about 5 million back by sales so they only wasted 45 million ;)
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JHUX - 337 days 12 hours ago
1.28 -
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^^.
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jessupj - 337 days 8 hours ago
1.29 - Here's an interesting fact for you guys and 360 fans
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)
2 panasonic23 | 338 days 9 hours ago - deleted by mod -
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Graphics Whore - 338 days 9 hours ago
2.1 -
They paid $50,000,000 for DLC. Stop and think for a moment. Okay now what did Sony do with $50,000,000

Protip: It starts with K ends with 2.
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rucky - 338 days 8 hours ago
2.2 - @panasonic
How hard it is to click at the link man. There's actually two sides arguing and giving their well thought out insights in the article.
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pwnsause - 338 days 8 hours ago
2.3 -
$50,000,000 could of kept studios like Ensemble and Bungie as Microsoft First party my friend, heck they could of opened a new studio, or make a 1/2nd party game.

$50,000,000. think about that... Games such as KZ2 and MGS4 costed almost this much to make.
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Nick212004 - 338 days 8 hours ago
2.4 - @rucky
Thank You
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njr - 338 days 8 hours ago
2.5 - @ 2.1
GOOD point. Why invest 50 million over DLC when you can have a studio create a whole game? 2.5 million people would have to buy it just for it to reach a revenue of 50 million. No wonder the expansion is $20.
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Homicide - 338 days 7 hours ago
2.6 -
They paid for extra content for one of the biggest franchies in gaming today. That's not a waste.
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Rhoic - 338 days 5 hours ago
2.7 -
@njr

GTA IV: The Lost & Damned is twice as long as Killzone 2's story and comes with a LOT of add-ons.

@pwnsauce

MS hired about 70% of Ensemble Studios into their own in-house dev teams. They also created about 3 other Halo dev teams from members of Bungie.

@everyone

They didn't pay $50 million for 1 DLC, they paid for 2. Which equates to 20-40 hours of extra story, a LOT of content, and possibly an entire new area to explore. These DLC add-ons (which could be considered full games for that matter) are on the level of WoW expansions in offering content. Not ONLY that, but Microsoft payed for ALL of this. Meaning? Rockstar probably knows that Microsoft will heavily support any major title they release and will possibly lean more towards the 360 for DLC, exclusives, etc.
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Graphics Whore - 338 days 4 hours ago
2.8 -
Haha Rhoic, how gullable are you. Rockstar also stated GTA4 would be 100 hours long. Learn to read between the lines.
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Nathan Drake - 338 days 9 hours ago
3 - Eh,to be honest
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.
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BRG9000 - 338 days 8 hours ago
3.1 -
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.
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BrianC6234 - 338 days 8 hours ago
3.2 -
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.
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rko_kero - 338 days 8 hours ago
3.3 -
@ BRG9000,

You dont have to own GTA4 to buy the DLC.
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StayHigh - 338 days 8 hours ago
3.4 -
"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..
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Clopsy - 338 days 7 hours ago
3.5 -
@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.
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IronAva - 338 days 7 hours ago
3.6 -
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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00 - 338 days 8 hours ago
4 - Why should I care
let them spend their money how they want and on whatever they want.
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darthv72 - 338 days 8 hours ago
5 - need to sell 2.5mil...
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?
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Harryhit4 - 338 days 8 hours ago
5.1 - Remember
Don't forget about the second DLC pack.
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SynGamer - 338 days 8 hours ago
5.2 -
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...
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