GTA DLC Exclusivity a Lost and Damned Financial Idea?

A quick analysis of the 50 million dollar deal thus far that gave Microsoft GTA 4 exclusive episodic DLC. Based on the numbers, the only logical question to ask Microsoft is ,"Excuse me sir, you have a 50 million dollar hole burning in your wallet?".

[SasanovaS777]

considering the dlc sold around 1 mil, when it needed to sell at least 2.5 mil to turn any profit, 50 million is a bad investment if u take into effect that the second dlc episode usually sells a little less then the first. it basically means the second episode needs to sell around 1.5 mil, with the lost and damned selling an extra 500k more by the time second episode comes out.

but again, this wasnt about making profit. it was about microsoft doing the best they can to have a few exclusives this year, which could potentially sell systems. im sure they were willing to lose money over this deal

[Blaze929]

sale numbers where never revealed...so stop pulling them out your ass.

[- Ghost of Sparta -]

http://www.n4g.com/industry...

And Microsoft can't even confirm this so it could have been less. If it was more, the obese Aaron Greenturd would have been the first douche to come out while eating 15 quadruple cheeseburgers to brag about it so don't kid yourself.

[Karum]

You have to remember though it'll be judged on the combined sales of both episodes. None of us are prophetic enough to know how it will sell or how the first episode will ultimately sell.

Sony's full release games have always sold more over time, I wouldn't be sure it's unreasonable to think some DLC for this game even though it is on another system can't be the same.

[iHEARTboobs]

Because from what we know they spent the money for two exclusive DLC's. But they were also trying to sway buyers towards the 360 and away from the PS3. Did that happen as much as they hoped it would? WHo knows. What i'm basically trying to say is that we won't know if it was worth it to MS based on the sales of the DLC alone. There's other factors that would have to be looked at.

[Kurylo3d]

Well according to this article gta 4 sold 1.5 million more on the 360 then the ps3. 60 dollars a game, im sure microsoft got a portion of that. So in the end im sure they made profits. It was worth it, this isnt even counting the sales of downloadable content.

[lokiroo420]

50 mill plus the advertising costs plus production costs, no way they are going to make their money back.

[Buttons]

Production costs go to Rockstar...

[lokiroo420]

oops!

[Blaze929]

As far as im concerned that article is nothing more than a "rumor." Kotaku is the only one to state it and no one else seems to have that "unnamed source."

I'm not saying it didnt sell a mil, i dont care. But I'm just saying as i did above, sales numbers were never revealed.

[gaffyh]

i wonder how much this DLC needs to turn over a profit for MS. If we say 25 mil for Rockstar for this one DLC, MS advertised the DLC for Rockstar, on top of that they pay bandwidth costs. Also I doubt MS is taking 100% of the money made, probably closer to 50% cut on each one. So lets say they get $10 for each DLC sold.

Means that they need to sell a lot ATLEAST 2.5 million if we assume they are taking a 50% cut and that's without factoring in any of the other costs. In any case, it's a LOT.

[Lifendz]

A drop in the e'ffing bucket. Honestly, if you're a 360 owner you have to be at least a little proud/pleased that MS is willing to throw away money to ensure only you get downloadeable content and to ensure you get games that were once exclusives.

Whether it makes up for the constant hardware problems with the systems is a subjective question that each 360 owner will have to answer.

[Sayai jin]

@Lifendz- Thats what is all about to me. Bubs.

My comment from another related article "Seeing how I do not work or own stock in MS I could care less about sales. I think it has paid off greatly. What I mean is that they paid to make sure those who have their console were going to get extra content(expansion)on. Hmmm, a company made sure that gamers had a chance to get and continue playing a game that has been one of the largest titles to launch this gen. I mean is this not why we are gamers to play games".

On topic, for those who care about sales numbers. The article states that it needed to sell 2.5 million to be profitable. Hmmm, so I guess if a game does not sell a certain amount by a certain time it has failed. Remember that it will still continue to sell, by end year (8 more months) these numbers could be closer to that 2.5. Also, this is only the 1st DLC there is another.

[sgd316]

but did they sell systems? the charts dont seem to point to the fact that they did.

[SasanovaS777]

touche. but its not the present that matters. its the future, in which you can point out, hey, the 360 has 2 big DLCs for the last GTA franchise, why should i buy the ps3 version next time, when i can hope for microsofts check to deliver once more?

[Socomer 1979]

you have to have a hardrive and no gamer with a right mind would invest more money on dlc they cant trade back at gamestop.
thats just bad business and many ps3 gamers called

[Shadow Man]

was to make the 360 version more appealing to the costumer. To make you think your getting the full experience with this 2 episodes.

Supposedly it already sold a million copies.

"no gamer with a right mind would invest more money on dlc" you saying it like only idiots bought the dlc. Your getting 10+ hours of gameplay for only $19.99. Thats a good deal.

[xaviertooth]

so shadowman, did u bought it?

[Neo604]

I have enough with GTA4 even with a different stories.
micheal belic story is long enough.
I have too many games to finish on the ps3.

[GiantEnemyCrab]

I enjoyed the L&D more than GTA IV itself so excuse me when I say screw this article. As a gamer I got a great piece of content that I enjoyed and I'm sure we could pull numbers and make up bullsh*t all day but does it matter?

"While we do not know exact sales figures because neither Microsoft or Rockstar will confirm anything regarding Lost and Damned other than it taking place in Liberty City, the closest thing we have at this point is industry analyst/pariah Michael Pachter quoted as guestimating sales to be in the ballpark of 1 million copies. "

Great so you make an entire article that needs solid sales numbers to reach your conclusion but you can't provide anything but a guess from Pachter.. Give me a break!

Plus this article assumes that the 50mil was only for the DLC. Can anyone link me to the details of what the 50mil was for by either MS or Rockstar? *crickets*

[JD_Shadow]

I forget what article said it (because it was a year or so ago that this came up) that the deal was 25 mil per episode.

And this article wasn't about the quality of the DLC, but on the sales alone, which cannot be confirmed by anyone because no one is releasing any real hard figures. You may enjoy it (I wonder if you would enjoy it if it was on the PS3, as well), but that doesn't mean that other people did (I didn't get it nor will I because GTA4, for me at least, was missing a lot of what made the GTA franchise what it is now).

Personally, I think this article brought up some good points which says that this "DLC as a weapon" strategy of MS's isn't going to work as well as they thought it would.

[KingKionic]

lol the article is linked to the other one that said it sold a mill on the 27th.

[from the beach]

I don't think it's too much of a stretch to surmise that the cash also greased the wheels for GTA4 releasing simultaneously on 360 - if so, it was cheap at 50 mill.

[raztad]

I dont think Rockstar needed money from MS to go the multiplat route. MS console has the bigger installed base why to go Sony exclusive?

BTW, Rockstar is the big winner here. MS didnt push more consoles (nobody is going to get a new console to play TEH DLC) and it is very doubtful they are making any profit from the it.

[from the beach]

Perhaps you're underestimating the importance of getting GTA4 for MS - the phrase 'held to ransom' springs to mind.

As for buying the console, obviously the DLC isn't a draw for a PS3 only owner, but for someone who owns neither console (or indeed both) the DLC adds the incentive to pick up the 360 version, and a 360, instead.

[Ashby_JC]

I have been sayon this from the beginning.

PPl are all caught up in the $50 million thinking it was just for DLC and too make a profit!!

QUESTION

1. HOW MANY MORE PS3s WOULD HAVE SOLD IF GTA4 WAS A TIMED EXCLUSIE LIKE IN THE PAST??

2. HOW MUCH SMALLER WOULD THE GAP BETWEEN THE PS3 AND 360 BE RIGHT NOW IF IT WAS A TIMED EXCLUSIVE??

3. HOW MANY PPL WHO OWN A 360 ONLY WOULD HAVE PURCHASED A PS3 for GTA4????

I can say that I would have hands down gotten a PS3 for GTA4!!!!! And I am sure there are quite a few ppl who would have done the same.

[kingme71]

Too much speculation and not enough hard facts to make any type of proper analysis. Plus you have to consider the intangibles that MS paid for like "from the beach" mentions about getting a simultaneous release as well as 360 sales. GTA is also considered a Playstation game from years past and MS wanted to draw those ready to make the jump to the next gen over to the 360 by waving DLC under their nose.

[xg-ei8ht]

As far as i know, they've sold 1.1million. Not enough frankly.

Strangely enough, they've also done a deal with eidos for d/l, although the game has sold better on PS3.

[Ashby_JC]

....In my opinion which of course isnt FACT. LOL

MS did a great thing for them buy first off gettin GTA4 day and date as the PS3 (Sony REALLY dropped the ball in letting this one get away)

If MS wanted to pay $50 Million for excluse DLC and didnt make a dime of profit from it...who cares?

And also dont you think they had MORE in mind when they secured the DLC??

1. It keeps it OFF the PS3 (meaning some ppl will have chosen the 360 version over the PS3)

2. Ppl on the fence may actually went out and got a 360 which is cheaper to play this game.

3. There is a 2nd DLC coming so thats something more they can add to advertise as exclusive for the xmas season. Hell they may even re-release a GTA4 for the holidays with BOTH DLC codes to unlock!