With Take-Two's $20 million settlement with its investors late last week, the long-wrought 'Hot Coffee' episode finally comes to a close. The settlement comes after the $2.75 million the publisher had previously set aside for payments and costs to incensed consumers -- and that's not all.
Once a user mod revealed a hidden sex minigame, the recall, re-rating and re-release of Grand Theft Auto: San Andreas the publisher had to undertake was surely expensive, concussing revenues -- where major GTA releases usually bring windfalls, the company's third quarter in 2005 showed a $28.8 million loss.
An estimate based on legal costs and lost sales is ultimately just a ball-park guess, of course -- that $20 million also compensates investors for Take-Two's stock option backdating scandal, and the company's insurance paid much of it. It's also impossible to create a precise lost-sales figure.
But the financial cost of "Hot Coffee" to Take-Two is clearly in the tens of millions, at least -- a huge price tag for a small share of game content consumers were never even supposed to see.
