GTA IV Cost MS $75 Million

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sayonara89

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#1 sayonara89
Member since 2009 • 1985 Posts

"This is another Michael Pachter soundbite so salt can be liberally pinched but if it is correct… wowzers! According the Grand Wizard Of Foresight, Microsoft paid Rockstar $75 million to take GTA IV from PS3exclusive to multi-format.

"GTA IV was going to be a PS3 exclusive, but Microsoft paid Rockstar and Take-Two to make it a non-exclusive, and they paid them a lot," said Pachter.

"The number I've heard, and I'm sure this is right, is $75m, and that probably includes the funding for the first DLC packs too. It's more than the $50m that people talk about."

Casting the spell 'Gossipy Chit-Chat Fantabulosa', Grand Wizard P continuedhis story and told that Sony asked Rockstar for something else exclusive and were told about a 'Zombie game'. Unfortunately Dead Rising and Left 4 Dead arrived so the project was canned and they came up with the idea of The Agent.

This probably explains why 'The Agent' has been very low on the radar – work probably did not start on it until GTA IV was finished.

Source: Eurogamer"

MS could afford nearly 4 Uncharted games for that money :lol: Edit: LOL :P

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GeneralShowzer

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#2 GeneralShowzer
Member since 2010 • 11598 Posts
Four Uncharted games. Uncharted budget = twenty million.
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Malta_1980

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#3 Malta_1980
Member since 2008 • 11890 Posts

wish MS gave me $500,000 from those $75 million :P

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designer-

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#4 designer-
Member since 2010 • 1328 Posts
Wasnt this a loan to Rockstar that they got back after development, or am I mistaking this for something else?
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suitmypants

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#5 suitmypants
Member since 2004 • 1015 Posts

what a waste. And in the end, the contract expired and PS3 now has the non "exclusive" games. It doesn't matter though, M$ definitely got their money back by milking out DLCs/periphials that 360 owners bought.

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Truth_Hurts_U

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#6 Truth_Hurts_U
Member since 2006 • 9703 Posts

People must have skipped math class.

MS gave RS $50 million for the expansions... But RS had to pay them back. If the total really is$75 million... MS only paid $25 million for GTA IV to be released on 360 day 1and the 2 timed exclusive add ons. Which if you look at how many units were sold... They made a killing in the end.

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Malta_1980

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#7 Malta_1980
Member since 2008 • 11890 Posts

mmm so MS sponsored the PS3 exclusive 'The Agent' ??? Sony should thank MS for such a nice gesture :P (am kidding btw...)

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Ratchet_Fan8

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#8 Ratchet_Fan8
Member since 2008 • 5574 Posts
their loss :lol: PS3 owners still get it,later,but still got it MS $$$ down the drain,they could of used those 75 mils donating to charity/buying new devs
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yoyo462001

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#9 yoyo462001
Member since 2005 • 7535 Posts

People must have skipped math class.

MS gave RS $50 million for the expansions... But RS had to pay them back. If the total really is$75 million... MS only paid $25 million for GTA IV to be released on 360 day 1and the 2 timed exclusive add ons. Which if you look at how many units were sold... They made a killing in the end.

Truth_Hurts_U
Can't really say if its a good/bad move unless we see the additional revenue it generated.
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Ravensmash

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#10 Ravensmash
Member since 2010 • 13862 Posts
I'm glad that they're spending huge amounts of money to bring fantastic games to my console - why is this a bad thing? Be worse if it was revealed that they could've got it but didn't want to pay very much. No doubt they made it back easily though from sales.
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designer-

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#11 designer-
Member since 2010 • 1328 Posts
[QUOTE="Truth_Hurts_U"]

People must have skipped math class.

MS gave RS $50 million for the expansions... But RS had to pay them back. If the total really is$75 million... MS only paid $25 million for GTA IV to be released on 360 day 1and the 2 timed exclusive add ons. Which if you look at how many units were sold... They made a killing in the end.

yoyo462001
Can't really say if its a good/bad move unless we see the additional revenue it generated.

Given the general love of the series its safe to assume they covered their costs. The $50 million loan is negligible in the count (depending on interest I guess) but the ability to have GTA4 on the 360, since day 1, and to have the solid expansion packs first no doubt resulted in a solid revenue stream, both from influenced console purchases and from software sales..
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fistoflight

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#12 fistoflight
Member since 2005 • 7943 Posts

Still think that 75 million should of went to first party devs. They rather spend 75 mil for that than keep their first party studios open, and I am pretty sure GTA 4 was going to go multiplat form down the line.

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James161324

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#13 James161324
Member since 2009 • 8315 Posts

So whats 75 million to microsoft.

If micrsoft wanted to take over ea they could. In case you haven't relized microsoft has the money to do w/e they want.

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sayonara89

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#14 sayonara89
Member since 2009 • 1985 Posts

Still think that 75 million should of went to first party devs. They rather spend 75 mil for that than keep their first party studios open, and I am pretty sure GTA 4 was going to go multiplat form down the line.

fistoflight
Yeah, it would probably be time exclusive, like 3, VC and SA on PS2.
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Cherokee_Jack

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#15 Cherokee_Jack
Member since 2008 • 32198 Posts
75% of the budget? Yikes. Anyway, it was a loan.
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skektek

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#16 skektek
Member since 2004 • 6530 Posts

I'm glad that they're spending huge amounts of money to bring fantastic games to my console - why is this a bad thing? Be worse if it was revealed that they could've got it but didn't want to pay very much. No doubt they made it back easily though from sales.Ravensmash

Its not really a bad thing, but the money would be been better spent on actually making games as opposed to a pissing match.

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Mestitia

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#17 Mestitia
Member since 2010 • 922 Posts

I sort of get why, but I would have much rather had MS invest in 2 or 3 new IP's or even just one mega new IP. This is one of the main reasons I don't like MS in the game industry, not because they "buy exclusives/multiplats", but because they hardly ever use their vast sums of money to create. We need creation!

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2mrw

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#18 2mrw
Member since 2008 • 6206 Posts

while i hate this way of business, it's effective .... Sony should have spent some money on 3rd party games, they have enough 1st party games for 2 life times.

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yoyo462001

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#19 yoyo462001
Member since 2005 • 7535 Posts

I sort of get why, but I would have much rather had MS invest in 2 or 3 new IP's or even just one mega new IP. This is one of the main reasons I don't like MS in the game industry, not because they "buy exclusives/multiplats", but because they hardly ever use their vast sums of money to create. We need creation!

Mestitia

Your in a sitation as the head of publsiher your offered two choices.

A.Pay $75m for DLC for one of the biggest IP's ever

B.Develop new IP

As an executive can you really blame them, off course we'd like more IP's but they are there to maximize profits. I would say MS is more weary than not wanting to invest. Sony and Nintendo have been in the industry longer, they no what works and what doesn't, it wouldn't be smart for MS to take the same amount of risks seeing as its still relatively new in the industry.

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stvee101

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#20 stvee101
Member since 2006 • 2953 Posts

[QUOTE="Ravensmash"]I'm glad that they're spending huge amounts of money to bring fantastic games to my console - why is this a bad thing? Be worse if it was revealed that they could've got it but didn't want to pay very much. No doubt they made it back easily though from sales.skektek

Its not really a bad thing, but the money would be been better spent on actually making games as opposed to a pissing match.

I totally agree.But acquiring and nurturing in-house development as Sony has done over the years is a costly and time consuming business.

Throwing money at 3rd party devs for exclusivity/timed- exclusivity has served MS pretty well this gen.

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jg4xchamp

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#21 jg4xchamp
Member since 2006 • 64054 Posts
Letting GTA 4 go exclusive would have been a stupid move by Microsoft. GTA is a big name, and a big system seller. If GTA 4 was PS3 exclusive the 360 vs PS3 race would be completely different right now if you honestly think about it. It may not be the best move in terms of quality of the gamers of each console. As 4 MS funded exclusives are certainly superior to one game(no matter how great). That said from a business standpoint you really can't knock Microsoft for the GTA 4 move. Getting it to go multiplat was important and worth every cent they spent. As for the timed exclusive DLC? well that wasn't as prudent or as wise, but getting GTA 4 multiplat was huge.
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Mestitia

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#22 Mestitia
Member since 2010 • 922 Posts

[QUOTE="Mestitia"]

I sort of get why, but I would have much rather had MS invest in 2 or 3 new IP's or even just one mega new IP. This is one of the main reasons I don't like MS in the game industry, not because they "buy exclusives/multiplats", but because they hardly ever use their vast sums of money to create. We need creation!

yoyo462001

Your in a sitation as the head of publsiher your offered two choices.

A.Pay $75m for DLC for one of the biggest IP's ever

B.Develop new IP

As an executive can you really blame them, off course we'd like more IP's but they are there to maximize profits. I would say MS is more weary than not wanting to invest. Sony and Nintendo have been in the industry longer, they no what works and what doesn't, it wouldn't be smart for MS to take the same amount of risks seeing as its still relatively new in the industry.

I don't think it would be such a huge risk, when MS was into PC gaming they were pretty damn great, they published and dev'd a ton of great games. But like I said I get why they'd do it, I don't even think it was the best decision as far as profit goes, it was probably more a let's make sure we lock up 3rd party support so we don't have to deal with the PS3 having a ton of 3rd party major exclusives, and it worked. But if I had my way I'd want new IP's, they could have funded 3 or 4 games.
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#23 savagetwinkie
Member since 2008 • 7981 Posts

I sort of get why, but I would have much rather had MS invest in 2 or 3 new IP's or even just one mega new IP. This is one of the main reasons I don't like MS in the game industry, not because they "buy exclusives/multiplats", but because they hardly ever use their vast sums of money to create. We need creation!

Mestitia
I think your a little unfair, xbox barely had its foot in the door, 360 would have been a failure if M$ didn't get the games we all wanted to play, and only really now has a chance to work on getting good first party games now that all the 3rd party dev's are on board.
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GulliversTravel

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#24 GulliversTravel
Member since 2009 • 3110 Posts

And why would Rockstar want to keep the game exclusive when half of its sales came from the 360:?

Its just standard Pachter nonesense.

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yoyo462001

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#25 yoyo462001
Member since 2005 • 7535 Posts
[QUOTE="yoyo462001"]

[QUOTE="Mestitia"]

I sort of get why, but I would have much rather had MS invest in 2 or 3 new IP's or even just one mega new IP. This is one of the main reasons I don't like MS in the game industry, not because they "buy exclusives/multiplats", but because they hardly ever use their vast sums of money to create. We need creation!

Mestitia

Your in a sitation as the head of publsiher your offered two choices.

A.Pay $75m for DLC for one of the biggest IP's ever

B.Develop new IP

As an executive can you really blame them, off course we'd like more IP's but they are there to maximize profits. I would say MS is more weary than not wanting to invest. Sony and Nintendo have been in the industry longer, they no what works and what doesn't, it wouldn't be smart for MS to take the same amount of risks seeing as its still relatively new in the industry.

I don't think it would be such a huge risk, when MS was into PC gaming they were pretty damn great, they published and dev'd a ton of great games. But like I said I get why they'd do it, I don't even think it was the best decision as far as profit goes, it was probably more a let's make sure we lock up 3rd party support so we don't have to deal with the PS3 having a ton of 3rd party major exclusives, and it worked. But if I had my way I'd want new IP's, they could have funded 3 or 4 games.

I doubt $75m is enough to fund more than one game if we include marketing and such. So 1 and half games maybe. On the PC MS are kings they know what their doing, its their home turf, consoles their away, they don't know exactly what the market knows and wants just yet. also remember new IP's are hit and miss whilst GTA 4 is as sure a hit as you can get :P
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Mestitia

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#26 Mestitia
Member since 2010 • 922 Posts

[QUOTE="Mestitia"][QUOTE="yoyo462001"]Your in a sitation as the head of publsiher your offered two choices.

A.Pay $75m for DLC for one of the biggest IP's ever

B.Develop new IP

As an executive can you really blame them, off course we'd like more IP's but they are there to maximize profits. I would say MS is more weary than not wanting to invest. Sony and Nintendo have been in the industry longer, they no what works and what doesn't, it wouldn't be smart for MS to take the same amount of risks seeing as its still relatively new in the industry.

yoyo462001

I don't think it would be such a huge risk, when MS was into PC gaming they were pretty damn great, they published and dev'd a ton of great games. But like I said I get why they'd do it, I don't even think it was the best decision as far as profit goes, it was probably more a let's make sure we lock up 3rd party support so we don't have to deal with the PS3 having a ton of 3rd party major exclusives, and it worked. But if I had my way I'd want new IP's, they could have funded 3 or 4 games.

I doubt $75m is enough to fund more than one game if we include marketing and such. So 1 and half games maybe. On the PC MS are kings they know what their doing, its their home turf, consoles their away, they don't know exactly what the market knows and wants just yet. also remember new IP's are hit and miss whilst GTA 4 is as sure a hit as you can get :P

I'm not exactly sure but I think there are plenty of really good games this gen that were made for around like 10Million, I think Gears 1 is one of those cases, they could of made 3 or 4 if they wanted and just hoped one or 2 hit it big, theres no way MS got all the profit off GTA.

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#27 xscrapzx
Member since 2007 • 6636 Posts

Wasnt this a loan to Rockstar that they got back after development, or am I mistaking this for something else?designer-
I believe it was a loan if the game didnt meet a certain amount sold.

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yoyo462001

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#28 yoyo462001
Member since 2005 • 7535 Posts

[QUOTE="yoyo462001"][QUOTE="Mestitia"] I don't think it would be such a huge risk, when MS was into PC gaming they were pretty damn great, they published and dev'd a ton of great games. But like I said I get why they'd do it, I don't even think it was the best decision as far as profit goes, it was probably more a let's make sure we lock up 3rd party support so we don't have to deal with the PS3 having a ton of 3rd party major exclusives, and it worked. But if I had my way I'd want new IP's, they could have funded 3 or 4 games.Mestitia

I doubt $75m is enough to fund more than one game if we include marketing and such. So 1 and half games maybe. On the PC MS are kings they know what their doing, its their home turf, consoles their away, they don't know exactly what the market knows and wants just yet. also remember new IP's are hit and miss whilst GTA 4 is as sure a hit as you can get :P

I'm not exactly sure but I think there are plenty of really good games this gen that were made for around like 10Million, I think Gears 1 is one of those cases, they could of made 3 or 4 if they wanted and just hoped one or 2 hit it big, theres no way MS got all the profit off GTA.

Think it was gears 2 that cost that much to develop, but that didn't include the costs of marketing and other related costs. Im not sure how much or if they even got profit from it, was just saying its the safe option to go for GTA 4 than new ip's, obviously with lots of risk comes reward but that was the time the economy was plunging so taking more risks wouldn't have been the best idea.
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Santesyu

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#29 Santesyu
Member since 2008 • 4451 Posts

You know how many exclusives MS could of had with 75 million lol?

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#30 Supabul
Member since 2004 • 4266 Posts

"This is another Michael Pachter soundbite so salt can be liberally pinched but if it is correct… wowzers! According the Grand Wizard Of Foresight, Microsoft paid Rockstar $75 million to take GTA IV from PS3exclusive to multi-format.

"GTA IV was going to be a PS3 exclusive, but Microsoft paid Rockstar and Take-Two to make it a non-exclusive, and they paid them a lot," said Pachter.

"The number I've heard, and I'm sure this is right, is $75m, and that probably includes the funding for the first DLC packs too. It's more than the $50m that people talk about."

Casting the spell 'Gossipy Chit-Chat Fantabulosa', Grand Wizard P continuedhis story and told that Sony asked Rockstar for something else exclusive and were told about a 'Zombie game'. Unfortunately Dead Rising and Left 4 Dead arrived so the project was canned and they came up with the idea of The Agent.

This probably explains why 'The Agent' has been very low on the radar – work probably did not start on it until GTA IV was finished.

Source: Eurogamer"

MS could afford nearly 4 Uncharted games for that money :lol: Edit: LOL :P

sayonara89
Do you really believe this, your basically saying MS funded the entire development costs for GTA 4 just to be non-exclusive, look we know MS have mega money but their not stupid
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Xire_XII

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#31 Xire_XII
Member since 2007 • 3092 Posts

It was a smart move. If they had let Final Fantasy XIII and GTAIV remain exclusive, they would have lost quite a few customers. Though, I still wonder what could have been done with that money as far as new IPs go. It was a less of a risk to break exclusives.

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fistoflight

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#32 fistoflight
Member since 2005 • 7943 Posts

It was a smart move. If they had let Final Fantasy XIII and GTAIV remain exclusive, they would have lost quite a few customers. Though, I still wonder what could have been done with that money as far as new IPs go. It was a less of a risk to break exclusives.

Xire_XII

Honestly I am pretty sure those games would of went multiplatform regardless.

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lhughey

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#33 lhughey
Member since 2006 • 4884 Posts
by the time GTA4 is over with their will be more than 10M copies on the 360. Not a bad investment for 25M. Also, remember Pachter says, reality is just the opposite. So, Rockstar paid M$ 75M!!! :)
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darthogre

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#34 darthogre
Member since 2006 • 5082 Posts
MS loves to spend money on multiplatform games. I'm telling you right now they paid for FF13 as well. People wonder why MS basically has little to no 1st party devs anymore..........they had to can them because of these types of moves.
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#35 gamecubepad
Member since 2003 • 7214 Posts

I wonder how much the royalty fee is for a console game? If they paid $25 million and there were 7-8 million copies sold, $3.50/copy would cover it.

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Zero5000X

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#36 Zero5000X
Member since 2004 • 8314 Posts
Well, Microsoft spent $90 million on the Halo MMO and that got cancelled. Obviously they have the money. Also, they probably made a ton on royalty fees and whatever their cut of the downloadable episodes was.
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Colin1192

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#37 Colin1192
Member since 2008 • 6221 Posts

Well if GTAIV had been PS3 exclusive, that would have put a big dent in MS's armor. I see this as something they kind of had to do. The game sold extremely well, so IMO job well done

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#38 navyguy21
Member since 2003 • 17897 Posts
The link clearly says it INCLUDES the 50m loan for the DLC. That leaves 25m to make it multiplat. 25m is not out of the ordinary to pay to make a title exclusive. This is a different situation. MS most likely made money on the dlc (Rockstar had to pay back 50m plus the standard 70/30 split after) So all in all, sounds like a good deal MS made. Its funny to see people try to spin this into a negative when GTA is such a massive franchise. Exclusivity of that game wouldve hurt MS, why wouldnt they take a 25m hit to ensure it doesnt happen? :P
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mushi799

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#39 mushi799
Member since 2006 • 1163 Posts

MS could have develop more game IPs with all that money.

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#40 navyguy21
Member since 2003 • 17897 Posts

MS could have develop more game IPs with all that money.

mushi799
They still have the money to do that. Im not sure people who are saying this completely understand the weight that the GTA name carries. The consequences of NOT getting this game at launch far outweighs any new IP they could make with that same amount.
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SPYDER0416

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#41 SPYDER0416
Member since 2008 • 16736 Posts

Since the game had such an expensive budget I imagine this just helped. You fanboys can whine all you want, but Cows just know that the extra money may have helped this game out.

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Dante2710

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#42 Dante2710
Member since 2005 • 63164 Posts
As much as i dislike MS, Michael Pachter? Really? GTA series has been going multiplatform for a long time; but this is so typical since he is pulling fact out of his behind.
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#43 MizFitAwesome
Member since 2009 • 2745 Posts

As much as i dislike MS, Michael Pachter? Really? GTA series has been going multiplatform for a long time; but this is so typical since he is pulling fact out of his behind. Dante2710
I agree, I find it funny that the only rime anyone believes Pachter is when he reports negative news about MS...

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mushi799

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#44 mushi799
Member since 2006 • 1163 Posts
[QUOTE="mushi799"]

MS could have develop more game IPs with all that money.

navyguy21
They still have the money to do that. Im not sure people who are saying this completely understand the weight that the GTA name carries. The consequences of NOT getting this game at launch far outweighs any new IP they could make with that same amount.

We're assuming it was exclusive to the ps3. Something tells it would have end up on the 360 regardless.
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navyguy21

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#45 navyguy21
Member since 2003 • 17897 Posts

We're assuming it was exclusive to the ps3. Something tells it would have end up on the 360 regardless.mushi799
"Regardless" and a simultaneous release on 360 makes a world of difference, as it did last gen. Just getting the game isnt enough. That timed exclusivity is enough to sell millions of consoles. You dont think getting a GTA day and date of release is the same as "getting it at some point" do you?