Did Microsoft's gamble with GTA IV fail to pay off?

For now. Rumors are hinting at it being a timed exclusive. Also, Rockstar is working on a PS3 exclusive and/or a heavily hinted at PS3 exclusive GTA 5.

lolfaqs

[QUOTE="navyguy21"][QUOTE="PoppaGamer"] I am doing the math, are you? So, 2 million by October 2009 @ $20 a pop, that's 40 million. So, by October they still aren't pulling a profit, right? Not to mention, the numbers you gave were from Pachter and not from MS themselves.PoppaGamer

[QUOTE="IronBass"][QUOTE="lolfaqs"]So it looks like M$' plan to hype DD has backfired.lolfaqs

I do. The research shows that gamers prefer hard copies, and Take Two confirmed that exclusive DLC for GTA IV didn't affect sales of the game or move 360s either.

While I would agree that people might still prefer hard copies, I am not sure what point you are trying to make here. You think LTAD would have sold more if it was available as a hard copy? Or, that if it was available for the PS3 through the PSN, PS3 owners would not download it?

I would agree that hard copies might sell more, 1 million copies downloaded is still rather impressive. While worldwide GTAIV is 50/50 in terms of sales on the PS3/360, the 360 has a 1 million lead in the US.

[QUOTE="PoppaGamer"]

You do know that MS paid for TWO episodes right?? the other will be out sometime this fall, so it was well worth it imo.navyguy21

[QUOTE="navyguy21"][QUOTE="PoppaGamer"] I am doing the math, are you? So, 2 million by October 2009 @ $20 a pop, that's 40 million. So, by October they still aren't pulling a profit, right? Not to mention, the numbers you gave were from Pachter and not from MS themselves.PoppaGamer

$50M more than covers the cost of development, especially considering the fact Rockstar already did most of the development when creating GTA IV. The "groundwork" was already done.

All Rockstar had to do was create a few new character models, record some new dialogue, write some new AI for how the gang functions, and write the code for all the new missions. Maybe that's too simplified, but I guarantee developing the DLC was nowhere near as expensive as GTA IV was.

It wasn't an investment, it was a loan. MS was always going to get their money whether TLATD flopped or not. It didn't so they get a cut. Sounds like a pretty good deal to me. Even if the DLC goes multiplat, by the time the dlc comes out on the PS3 they would have made a profit from the deal and reaped the benefits already.

heretrix

Actually, it was an investment, not a loan. TT considers the $25 mil for the LTAD "revenue", and the additional $25 mil for the next DLC "deferred revenue". A loan would be considered a "payable", and is different fromrevenue, unless you went to one of those universities that teaches "creative" accounting. lol. Therefore, it is clear that the burden is on MS to recoup their money through the DLC. And, since MS paid TT for a product (the DLC), the$20 should all go to MS.

Here is a link to a TT investor meeting transcript where TT specifically states that the $50 mil for the DLC is revenue.

http://seekingalpha.com/article/38017-take-two-f2q07-qtr-end-4-30-07-earnings-call-transcript

Be fore warned, it is pretty dry stuff, and the mention of the DLC as revenue isn't until half-way through this lengthy document.

hmm. you guys do realize that when they say 50/50 it doesn't necessarily mean that each system sold exactly 6.5 million copies of the 13 million total sold right? Zero5000X

its already been stated that in the US the 360 version has a million copy lead, but beyond that its virtually 50/50

[QUOTE="IronBass"][QUOTE="lolfaqs"]So it looks like M$' plan to hype DD has backfired.lolfaqs

I do. The research shows that gamers prefer hard copies, and Take Two confirmed that exclusive DLC for GTA IV didn't affect sales of the game or move 360s either.

For now. Rumors are hinting at it being a timed exclusive. Also, Rockstar is working on a PS3 exclusive and/or a heavily hinted at PS3 exclusive GTA 5.

lolfaqs

[QUOTE="IronBass"][QUOTE="lolfaqs"]So it looks like M$' plan to hype DD has backfired.lolfaqs

I do. The research shows that gamers prefer hard copies, and Take Two confirmed that exclusive DLC for GTA IV didn't affect sales of the game or move 360s either.

[QUOTE="lolfaqs"]

NPD research has shown that 75% of gamers prefer retail over DD:

http://www.edge-online.com/news/npds-frazier-consumers-prefer-retail

In a recent poll topic on Gamespot's System Wars forum, hard copy is the clear winner as well with 75% of voters preferring a hard copy over DD.

http://www.gamespot.com/pages/forums/show_msgs.php?topic_id=26804834&page=0

So it looks like M$' plan to hype DD has backfired.

MortalDecay

Nope. I'm showing how a System War poll is right in line with NPD's analysis. I know connecting the dots is hard for you, but try to follow along please. :)

Um, L&D set record sales. And 1UP confirmed MS is getting that 50 million back. The 50 million from MS was a guarantee to R*.

Um, L&D set record sales. And 1UP confirmed MS is getting that 50 million back. The 50 million from MS was a guarantee to R*.

BioShockOwnz

Has nothing to do with the topic, but okay.

[QUOTE="BioShockOwnz"]

Um, L&D set record sales. And 1UP confirmed MS is getting that 50 million back. The 50 million from MS was a guarantee to R*.

lolfaqs

Has nothing to do with the topic, but okay.

Your thread title sorta contradicts the OP. You think MS cares how much GTA IV sells? Nope. They want the L&D to sell boatloads and it has. Your title should read "Rockstar", which means no they didn't take a gamble, because GTA IV has already been a huge success and L&D is on its way.

[QUOTE="lolfaqs"]

[QUOTE="BioShockOwnz"]

Um, L&D set record sales. And 1UP confirmed MS is getting that 50 million back. The 50 million from MS was a guarantee to R*.

BioShockOwnz

Has nothing to do with the topic, but okay.

Your thread title sorta contradicts the OP. You think MS cares how much GTA IV sells? Nope. They want the L&D to sell boatloads and it has. Your title should read "Rockstar", which means no they didn't take a gamble, because GTA IV has already been a huge success and L&D is on its way.

Not really unless someone is too incompetent to read the topic and know that it's about the failure of GTA IV DLC to sell 360s and copies of GTA IV on the 360 itself.

[QUOTE="BioShockOwnz"]

[QUOTE="lolfaqs"]

Has nothing to do with the topic, but okay.

lolfaqs

Your thread title sorta contradicts the OP. You think MS cares how much GTA IV sells? Nope. They want the L&D to sell boatloads and it has. Your title should read "Rockstar", which means no they didn't take a gamble, because GTA IV has already been a huge success and L&D is on its way.

Not really unless someone is too incompetent to read the topic and know that it's about the failure of GTA IV DLC to sell 360s and copies of GTA IV on the 360 itself.

this is why DLC FAILS (you cant take it to your friends house to play it)!!! also i have friends with ps3/360s ("casual gamers") and most of them dont even worry about putting them online but they got internet??? they just believe its just for playing games not connecting to internet thats where microsoft is failing they havent realized 75% of gamers are not hardcore!!!

this is why DLC FAILS (you cant take it to your friends house to play it)!!!

rogelio22

[QUOTE="lolfaqs"]

For now. Rumors are hinting at it being a timed exclusive. Also, Rockstar is working on a PS3 exclusive and/or a heavily hinted at PS3 exclusive GTA 5.

Verge_6

lol well im sure he isnt a bandodger either :roll:

[QUOTE="lolfaqs"]

For now. Rumors are hinting at it being a timed exclusive. Also, Rockstar is working on a PS3 exclusive and/or a heavily hinted at PS3 exclusive GTA 5.

heretrix

1. GTA has NEVER been an exclusive game

.

[QUOTE="heretrix"]

[QUOTE="lolfaqs"]

For now. Rumors are hinting at it being a timed exclusive. Also, Rockstar is working on a PS3 exclusive and/or a heavily hinted at PS3 exclusive GTA 5.

seannn199

1. GTA has NEVER been an exclusive game

.

Didn't the DLC sell tremendously?Stevo_the_gamer

That's not the point. The point the article was saying is that people don't change their minds regarding a console purchase, because of exclusive DLC. MS wanted more consoles sold because of the DLC, and as Take Two have showed, MS failed in doing that.

L and D is an really awesome game. but like i said back in the days. take 2 is not stupid to keep gta 4 only exclusive to the 360. they are company that is iit to make money. yah time exclusive, but keeping a dlc for exclusive tot he 360 is not something i can see. ppl bashed me for thinking that way, but those ppl are fanboyw who are blinded by fanboys ways.

[QUOTE="seannn199"][QUOTE="heretrix"]That's incredibly dumb on every level imaginable.

1. GTA has NEVER been an exclusive game

.

carljohnson3456

Well considering that 80% of the sales of San Andreas was one the PS2 and that is across all platforms, including the PC. That is a huge loss to being 50/50 now with GTA4 on the 360. If you count the PC version then they have sold even less that 50% on the PS3. That is a huge loss to Sony's share of the GTA franchise. I would say that it worked out pretty well for MS.

When the numbers don't go their way, Xbots resort to personal attacks and making up imaginary numbers like 8 million. Desperate times for desperate measures, I suppose.

lolfaqs

That's irelevant... the fact of the matter, is that the 360 version is superior by charge of having more content. In other words, you lose this one cows.

[QUOTE="MortalDecay"]

[QUOTE="lolfaqs"]

NPD research has shown that 75% of gamers prefer retail over DD:

http://www.edge-online.com/news/npds-frazier-consumers-prefer-retail

In a recent poll topic on Gamespot's System Wars forum, hard copy is the clear winner as well with 75% of voters preferring a hard copy over DD.

http://www.gamespot.com/pages/forums/show_msgs.php?topic_id=26804834&page=0

So it looks like M$' plan to hype DD has backfired.

lolfaqs

Nope. I'm showing how a System War poll is right in line with NPD's analysis. I know connecting the dots is hard for you, but try to follow along please. :)

I like how you avoided the comments about the insane revenue from LIVE. You seem to have a superiority complex, and maybe this will play into it, but how is showing an NPD report and system wars forum poll "connecting" any dots? The system wars poll, whether in line with the NPD report or not is not scientific and most likely flawed. You could show me a book that says 1+1=2 and collaborate that with 10 people on the street, but the 10 people do not enhance or detract from the claim. Maybe that's a bad analogy, but the point is, piling mounds of flawed evidence on your claim does nothing to prove your point.

Furthermore, the fact that 25% of the gaming community Does prefer DD is impressive from my point of view. Mainstream DD (movies, demos, TV shows) on consoles has been around for 3.5 years now. I'd say that is impressive ground being made. I'm assuming as the years pass younger gamers join the ranks and won't mind DD as much. If only Blu-ray would have 25% market share 3.5 years in, right? From the looks of it it will have about 10, so kudos to MS and DD.

*Edit: I should say market preference, because I doubt DD has 25% market share.

Maybe MS should've spent that money on some good first/second party exclusives rather than DLC for a game everyone stopped caring about 5 minutes after finishing it.

-BOX-