Official: PS3 not seeing GTA4 content for at least a year, MS loses no money.

Summary:

- Microsoft payed an advance for 2 downloadable content packs, 25 million apiece, based on speculated profits.
- These packs will be sizable
- PS3 will not being seeing this content for at least a YEAR.
- Microsoft expects of at least 70 million PROFIT. Take Two and Microsoft are looking forward to this and are extremely confident

- Even if they don't make back their money (50 million), Take Two has to return the difference advance. Thus, Microsoft doesn't lose a DIME.
- SONY IS SCREWED ONCE AGAIN.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6023&Itemid=2

UPDATE 2 - Microsoft paid a reported $50 million advance to secure exclusive Grand Theft Auto IV downloadable content for Xbox 360. Next-Gen spoke with Microsoft and analyst Michael Pachter about the deal.

Stock analysis site Seeking Alpha reports (via NeoGaf) that that Microsoft will be forking over a a $50 million advance to GTA IV publisher Take-Two in order to secure exclusive GTA IV downloadable content.

Speaking to Evan Wilson of Pacific Crest Securities, newly-appointed Take-Two CFO Laine Goldstein said in a recent earnings call that the first batch of downloadable content should be available in March 2008 followed by another episodic download later in the year.

"The first $25 million is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second $25 million will be for the second episode, and that will be later in fiscal '08," Goldstein said.

Goldstein was addressing Wilson's question regarding the "deferred revenue chunk" (i.e. the money Microsoft paid Take-Two in advance) as it relates to GTA IV's downloadable content.

Next-Gen contacted Wedbush Morgan Securities analyst Michael Pachter, who further explained the deal. "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, he said, the $50 million is not a fee that Microsoft paid Take-Two solely to secure the rights for the content. Rather, 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.

If revenues don't meet that figure, Take-Two will have to return some of the advance, according to Pachter. But he said that there's no reason to believe Take-Two would actually miss that revenue target.

He also stated, "By giving this advance, Microsoft did extract from Take-Two the promise to make [GTA IV content] exclusive. But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."

Next-Gen also contacted Microsoft for comment regarding the exclusivity deal, but the firm opted not to confirm the terms of the deal. "The quality, depth and breadth of our Xbox 360 portfolio is a testament to the great relationships we've established over the years with our third-party partners," read a prepared statement from Microsoft. "Just as we recognize how important their video game titles are to driving an unrivaled gaming experience on the Xbox 360, they recognize the immense value of having their titles on our platform. Xbox 360 is easy to develop on, we have the largest online social network on television with Live and we're in more homes than any other next generation console in the world.

"At the end of the day, our third-party publishers own their IPs and ultimately decide where they're going to take their franchises, and we're thrilled that they've made the choice to build for the Xbox 360. Microsoft does not comment on business arrangements with our partners."

Calls to Take-Two were not immediately returned as of press time.

So Microsoft paid 50 million $'s for add on content that will be only a time exclusive. Wow? Now that is being careless with your money. Also in order to get the 70 million $'s for add on content, if it is 10 $'s for each will mean that 7 million downloads for both, or if it is 20 $ for each means, 3.5 million downloads for the content. This won't ever happen.

Ouch, so they got exclusivness just for a loan. nice moveDoctorBunny

Summary:

- Microsoft payed an advance for 2 downloadable content packs, 25 million apiece, based on speculated profits.
- These packs will be sizable
- PS3 will not being seeing this content for at least a YEAR.
- Microsoft expects of at least 70 million PROFIT. Take Two and Microsoft are looking forward to this and are extremely confident

- Even if they don't make back their money (50 million), Take Two has to return the difference advance. Thus, Microsoft doesn't lose a DIME.
- SONY IS SCREWED ONCE AGAIN.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6023&Itemid=2

UPDATE 2 - Microsoft paid a reported $50 million advance to secure exclusive Grand Theft Auto IV downloadable content for Xbox 360. Next-Gen spoke with Microsoft and analyst Michael Pachter about the deal.

Stock analysis site Seeking Alpha reports (via NeoGaf) that that Microsoft will be forking over a a $50 million advance to GTA IV publisher Take-Two in order to secure exclusive GTA IV downloadable content.

Speaking to Evan Wilson of Pacific Crest Securities, newly-appointed Take-Two CFO Laine Goldstein said in a recent earnings call that the first batch of downloadable content should be available in March 2008 followed by another episodic download later in the year.

"The first $25 million is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second $25 million will be for the second episode, and that will be later in fiscal '08," Goldstein said.

Goldstein was addressing Wilson's question regarding the "deferred revenue chunk" (i.e. the money Microsoft paid Take-Two in advance) as it relates to GTA IV's downloadable content.

Next-Gen contacted Wedbush Morgan Securities analyst Michael Pachter, who further explained the deal. "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, he said, the $50 million is not a fee that Microsoft paid Take-Two solely to secure the rights for the content. Rather, 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.

If revenues don't meet that figure, Take-Two will have to return some of the advance, according to Pachter. But he said that there's no reason to believe Take-Two would actually miss that revenue target.

He also stated, "By giving this advance, Microsoft did extract from Take-Two the promise to make [GTA IV content] exclusive. But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."

Next-Gen also contacted Microsoft for comment regarding the exclusivity deal, but the firm opted not to confirm the terms of the deal. "The quality, depth and breadth of our Xbox 360 portfolio is a testament to the great relationships we've established over the years with our third-party partners," read a prepared statement from Microsoft. "Just as we recognize how important their video game titles are to driving an unrivaled gaming experience on the Xbox 360, they recognize the immense value of having their titles on our platform. Xbox 360 is easy to develop on, we have the largest online social network on television with Live and we're in more homes than any other next generation console in the world.

"At the end of the day, our third-party publishers own their IPs and ultimately decide where they're going to take their franchises, and we're thrilled that they've made the choice to build for the Xbox 360. Microsoft does not comment on business arrangements with our partners."

Calls to Take-Two were not immediately returned as of press time.

Omnikryon

So,sony gets the content after a year what M$ paid $50 million for!! Nice move!

So Microsoft paid 50 million $'s for add on content that will be only a time exclusive. Wow? Now that is being careless with your money.

nhh12345

Microsoft just got extra, EXCLUSIVE content for one of the biggest titles ever, for at least a year, PRACTICALLY FOR FREE.

[QUOTE="Omnikryon"]

Summary:

- Microsoft payed an advance for 2 downloadable content packs, 25 million apiece, based on speculated profits.
- These packs will be sizable
- PS3 will not being seeing this content for at least a YEAR.
- Microsoft expects of at least 70 million PROFIT. Take Two and Microsoft are looking forward to this and are extremely confident

- Even if they don't make back their money (50 million), Take Two has to return the difference advance. Thus, Microsoft doesn't lose a DIME.
- SONY IS SCREWED ONCE AGAIN.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6023&Itemid=2

UPDATE 2 - Microsoft paid a reported $50 million advance to secure exclusive Grand Theft Auto IV downloadable content for Xbox 360. Next-Gen spoke with Microsoft and analyst Michael Pachter about the deal.

Stock analysis site Seeking Alpha reports (via NeoGaf) that that Microsoft will be forking over a a $50 million advance to GTA IV publisher Take-Two in order to secure exclusive GTA IV downloadable content.

Speaking to Evan Wilson of Pacific Crest Securities, newly-appointed Take-Two CFO Laine Goldstein said in a recent earnings call that the first batch of downloadable content should be available in March 2008 followed by another episodic download later in the year.

"The first $25 million is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second $25 million will be for the second episode, and that will be later in fiscal '08," Goldstein said.

Goldstein was addressing Wilson's question regarding the "deferred revenue chunk" (i.e. the money Microsoft paid Take-Two in advance) as it relates to GTA IV's downloadable content.

Next-Gen contacted Wedbush Morgan Securities analyst Michael Pachter, who further explained the deal. "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, he said, the $50 million is not a fee that Microsoft paid Take-Two solely to secure the rights for the content. Rather, 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.

If revenues don't meet that figure, Take-Two will have to return some of the advance, according to Pachter. But he said that there's no reason to believe Take-Two would actually miss that revenue target.

He also stated, "By giving this advance, Microsoft did extract from Take-Two the promise to make [GTA IV content] exclusive. But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."

Next-Gen also contacted Microsoft for comment regarding the exclusivity deal, but the firm opted not to confirm the terms of the deal. "The quality, depth and breadth of our Xbox 360 portfolio is a testament to the great relationships we've established over the years with our third-party partners," read a prepared statement from Microsoft. "Just as we recognize how important their video game titles are to driving an unrivaled gaming experience on the Xbox 360, they recognize the immense value of having their titles on our platform. Xbox 360 is easy to develop on, we have the largest online social network on television with Live and we're in more homes than any other next generation console in the world.

"At the end of the day, our third-party publishers own their IPs and ultimately decide where they're going to take their franchises, and we're thrilled that they've made the choice to build for the Xbox 360. Microsoft does not comment on business arrangements with our partners."

Calls to Take-Two were not immediately returned as of press time.

Conjuredevil

So,sony gets the content after a year what M$ paid $50 million for!! Nice move!

You realize they are getting the content absolutly free right? And it says PS3 won't get ANY content until then, it says nothing about receiving 360's content

[QUOTE="Conjuredevil"][QUOTE="Omnikryon"]

Summary:

- Microsoft payed an advance for 2 downloadable content packs, 25 million apiece, based on speculated profits.
- These packs will be sizable
- PS3 will not being seeing this content for at least a YEAR.
- Microsoft expects of at least 70 million PROFIT. Take Two and Microsoft are looking forward to this and are extremely confident

- Even if they don't make back their money (50 million), Take Two has to return the difference advance. Thus, Microsoft doesn't lose a DIME.
- SONY IS SCREWED ONCE AGAIN.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6023&Itemid=2

UPDATE 2 - Microsoft paid a reported $50 million advance to secure exclusive Grand Theft Auto IV downloadable content for Xbox 360. Next-Gen spoke with Microsoft and analyst Michael Pachter about the deal.

Stock analysis site Seeking Alpha reports (via NeoGaf) that that Microsoft will be forking over a a $50 million advance to GTA IV publisher Take-Two in order to secure exclusive GTA IV downloadable content.

Speaking to Evan Wilson of Pacific Crest Securities, newly-appointed Take-Two CFO Laine Goldstein said in a recent earnings call that the first batch of downloadable content should be available in March 2008 followed by another episodic download later in the year.

"The first $25 million is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second $25 million will be for the second episode, and that will be later in fiscal '08," Goldstein said.

Goldstein was addressing Wilson's question regarding the "deferred revenue chunk" (i.e. the money Microsoft paid Take-Two in advance) as it relates to GTA IV's downloadable content.

Next-Gen contacted Wedbush Morgan Securities analyst Michael Pachter, who further explained the deal. "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, he said, the $50 million is not a fee that Microsoft paid Take-Two solely to secure the rights for the content. Rather, 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.

If revenues don't meet that figure, Take-Two will have to return some of the advance, according to Pachter. But he said that there's no reason to believe Take-Two would actually miss that revenue target.

He also stated, "By giving this advance, Microsoft did extract from Take-Two the promise to make [GTA IV content] exclusive. But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."

Next-Gen also contacted Microsoft for comment regarding the exclusivity deal, but the firm opted not to confirm the terms of the deal. "The quality, depth and breadth of our Xbox 360 portfolio is a testament to the great relationships we've established over the years with our third-party partners," read a prepared statement from Microsoft. "Just as we recognize how important their video game titles are to driving an unrivaled gaming experience on the Xbox 360, they recognize the immense value of having their titles on our platform. Xbox 360 is easy to develop on, we have the largest online social network on television with Live and we're in more homes than any other next generation console in the world.

"At the end of the day, our third-party publishers own their IPs and ultimately decide where they're going to take their franchises, and we're thrilled that they've made the choice to build for the Xbox 360. Microsoft does not comment on business arrangements with our partners."

Calls to Take-Two were not immediately returned as of press time.

DoctorBunny

So,sony gets the content after a year what M$ paid $50 million for!! Nice move!

You realize they are getting the content absolutly free right? And it says PS3 won't get ANY content until then, it says nothing about receiving 360's content

"...But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."

Grats on a shrewed move to microsoft, but speculation on the year wait is a rather foolish statementon their part. If GTA sells well on 360 it could meet their mark earlier than expected, and if that is the case it could be likely that PS3 would see DLC in 6 months like every other staggered release... of course thats just my guess. I didn't read a moritorium anywhere in that page that said the DLC will be exclusive or the only DLC for 1 year, so I'd have to assume that when profits dry up from the initial 360 release a PS3 DLC release could only further benefit R*.

again just speculation, but this might turn out to be yet another reason to settle on an xbox over a PS3

I hope MS does'nt start doing this on other multiplats, i love downloadable content as much as everyone else ,but if the other platforms dont get it then i feel it's very unfair for the gamers.SSJ_Nega

Sony didn't have to pay anyone $50 million for the ps1 and ps2 to dominate (except maybe immersion but that's different) I hate what MS is doing...

I hope MS does'nt start doing this on other multiplats, i love downloadable content as much as everyone else ,but if the other platforms dont get it then i feel it's very unfair for the gamers.SSJ_Nega

Sorry that cows paid $600 for nothing.

I hope lemmings know that THEY won't be getting that content for cheap.

M$ will make back that 50 million, and more.

[QUOTE="DoctorBunny"][QUOTE="Conjuredevil"][QUOTE="Omnikryon"]

Summary:

- Microsoft payed an advance for 2 downloadable content packs, 25 million apiece, based on speculated profits.
- These packs will be sizable
- PS3 will not being seeing this content for at least a YEAR.
- Microsoft expects of at least 70 million PROFIT. Take Two and Microsoft are looking forward to this and are extremely confident

- Even if they don't make back their money (50 million), Take Two has to return the difference advance. Thus, Microsoft doesn't lose a DIME.
- SONY IS SCREWED ONCE AGAIN.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6023&Itemid=2

UPDATE 2 - Microsoft paid a reported $50 million advance to secure exclusive Grand Theft Auto IV downloadable content for Xbox 360. Next-Gen spoke with Microsoft and analyst Michael Pachter about the deal.

Stock analysis site Seeking Alpha reports (via NeoGaf) that that Microsoft will be forking over a a $50 million advance to GTA IV publisher Take-Two in order to secure exclusive GTA IV downloadable content.

Speaking to Evan Wilson of Pacific Crest Securities, newly-appointed Take-Two CFO Laine Goldstein said in a recent earnings call that the first batch of downloadable content should be available in March 2008 followed by another episodic download later in the year.

"The first $25 million is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second $25 million will be for the second episode, and that will be later in fiscal '08," Goldstein said.

Goldstein was addressing Wilson's question regarding the "deferred revenue chunk" (i.e. the money Microsoft paid Take-Two in advance) as it relates to GTA IV's downloadable content.

Next-Gen contacted Wedbush Morgan Securities analyst Michael Pachter, who further explained the deal. "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, he said, the $50 million is not a fee that Microsoft paid Take-Two solely to secure the rights for the content. Rather, 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.

If revenues don't meet that figure, Take-Two will have to return some of the advance, according to Pachter. But he said that there's no reason to believe Take-Two would actually miss that revenue target.

He also stated, "By giving this advance, Microsoft did extract from Take-Two the promise to make [GTA IV content] exclusive. But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."

Next-Gen also contacted Microsoft for comment regarding the exclusivity deal, but the firm opted not to confirm the terms of the deal. "The quality, depth and breadth of our Xbox 360 portfolio is a testament to the great relationships we've established over the years with our third-party partners," read a prepared statement from Microsoft. "Just as we recognize how important their video game titles are to driving an unrivaled gaming experience on the Xbox 360, they recognize the immense value of having their titles on our platform. Xbox 360 is easy to develop on, we have the largest online social network on television with Live and we're in more homes than any other next generation console in the world.

"At the end of the day, our third-party publishers own their IPs and ultimately decide where they're going to take their franchises, and we're thrilled that they've made the choice to build for the Xbox 360. Microsoft does not comment on business arrangements with our partners."

Calls to Take-Two were not immediately returned as of press time.

nhh12345

So,sony gets the content after a year what M$ paid $50 million for!! Nice move!

You realize they are getting the content absolutly free right? And it says PS3 won't get ANY content until then, it says nothing about receiving 360's content

It's more likely to be $20. Remember each episodic pack is going to be a 10 hour expansion, also rumored to be the size of the spin off liberty city stories.

So Microsoft paid 50 million $'s for add on content that will be only a time exclusive. Wow? Now that is being careless with your money. Also in order to get the 70 million $'s for add on content, if it is 10 $'s for each will mean that 7 million downloads for both, or if it is 20 $ for each means, 3.5 million downloads for the content. This won't ever happen.

nhh12345

Either you didn't read it or you can comprehend what you read.

[QUOTE="nhh12345"]

So Microsoft paid 50 million $'s for add on content that will be only a time exclusive. Wow? Now that is being careless with your money. Also in order to get the 70 million $'s for add on content, if it is 10 $'s for each will mean that 7 million downloads for both, or if it is 20 $ for each means, 3.5 million downloads for the content. This won't ever happen.

lantus

10 $'s for each 70 million/10=7 million downloads in order to reach this. 70 million/20=3.5 million downloads for 20 $ each. This is unrealistic, and it is basically giving take 2 money for no apparent reason, or to have closer relationships with microsoft.

Either you didn't read it or you can comprehend what you read.

[QUOTE="SSJ_Nega"]I hope MS does'nt start doing this on other multiplats, i love downloadable content as much as everyone else ,but if the other platforms dont get it then i feel it's very unfair for the gamers.Omnikryon

Sorry that cows paid $600 for nothing.

Please dont call me a cow, i hate those names, i dont even have a ps3 so i'm not a cow, i like all games consoles, besides i know nothing about extra content last gen, i just think it's unfair that ps3 owners dont get the extra content for a year and i fear that Sony and MS may start fighting for extra content on each multiplat and i dont want that.

I dont care for GTA content at all but either wayWe'll have it on psn Soon enough , Damage Taken 0%...

Priceless :P

[QUOTE="SSJ_Nega"]I hope MS does'nt start doing this on other multiplats, i love downloadable content as much as everyone else ,but if the other platforms dont get it then i feel it's very unfair for the gamers.munu9

Sony didn't have to pay anyone $50 million for the ps1 and ps2 to dominate (except maybe immersion but that's different) I hate what MS is doing...

Are they referring to now, or after the 360 gets it by a year's wait?CJL13

Must mean from release as otherwise the second episode could be released day and date for Ps3.

Was a clever move by Microsoft to take advantage of Take Two financial problems and need for immediate cash.

Are they referring to now, or after the 360 gets it by a year's wait?CJL13

GTA4 releases for the 360 and PS3 in October 2007.

First downloadable content pack comes in March 2008 for the 360 only.

Second downloadable content pack comes in Holidays 2008 for the 360 only.

Microsoft basically got 2 GTAs to sell to customers at 2 extra points of the year while people are waiting on the next installment. The competition will not see it (for at least a year), and they got it at no extra cost to themselves.

Microsoft owns at business. You have to give them that. :)

I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.Eddie-Vedder

Ouch. :lol:

I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.Eddie-Vedder

I still fail to see where it says it will. It says the PS3 won't receive ANY content until then. It doesn't say PS3 will receive THIS content then?

[QUOTE="munu9"]

[QUOTE="SSJ_Nega"]I hope MS does'nt start doing this on other multiplats, i love downloadable content as much as everyone else ,but if the other platforms dont get it then i feel it's very unfair for the gamers.Omnikryon

Sony didn't have to pay anyone $50 million for the ps1 and ps2 to dominate (except maybe immersion but that's different) I hate what MS is doing...

really? Didn't know about that; how much did they pay? I doubt it was $50 million...

[QUOTE="Omnikryon"][QUOTE="munu9"]

[QUOTE="SSJ_Nega"]I hope MS does'nt start doing this on other multiplats, i love downloadable content as much as everyone else ,but if the other platforms dont get it then i feel it's very unfair for the gamers.munu9

Sony didn't have to pay anyone $50 million for the ps1 and ps2 to dominate (except maybe immersion but that's different) I hate what MS is doing...

really? Didn't know about that; how much did they pay? I doubt it was $50 million...

sony made a 3 year contract with rockstar to keep GTA on the ps2

I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.Eddie-Vedder

read the post again..it said that the ps3 wont be seeing ANY new content for a while..wasnt talking about the content the 360 version is getting

" SCEA's contract with Rockstar originally stated that all Grand Theft Auto titles would be exclusive to PlayStation 2 (with the exception of the PC) from 2001 to year's end 2004."

IGN

[QUOTE="Conjuredevil"][QUOTE="Omnikryon"]

Summary:

- Microsoft payed an advance for 2 downloadable content packs, 25 million apiece, based on speculated profits.
- These packs will be sizable
- PS3 will not being seeing this content for at least a YEAR.
- Microsoft expects of at least 70 million PROFIT. Take Two and Microsoft are looking forward to this and are extremely confident

- Even if they don't make back their money (50 million), Take Two has to return the difference advance. Thus, Microsoft doesn't lose a DIME.
- SONY IS SCREWED ONCE AGAIN.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6023&Itemid=2

UPDATE 2 - Microsoft paid a reported $50 million advance to secure exclusive Grand Theft Auto IV downloadable content for Xbox 360. Next-Gen spoke with Microsoft and analyst Michael Pachter about the deal.

Stock analysis site Seeking Alpha reports (via NeoGaf) that that Microsoft will be forking over a a $50 million advance to GTA IV publisher Take-Two in order to secure exclusive GTA IV downloadable content.

Speaking to Evan Wilson of Pacific Crest Securities, newly-appointed Take-Two CFO Laine Goldstein said in a recent earnings call that the first batch of downloadable content should be available in March 2008 followed by another episodic download later in the year.

"The first $25 million is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second $25 million will be for the second episode, and that will be later in fiscal '08," Goldstein said.

Goldstein was addressing Wilson's question regarding the "deferred revenue chunk" (i.e. the money Microsoft paid Take-Two in advance) as it relates to GTA IV's downloadable content.

Next-Gen contacted Wedbush Morgan Securities analyst Michael Pachter, who further explained the deal. "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, he said, the $50 million is not a fee that Microsoft paid Take-Two solely to secure the rights for the content. Rather, 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.

If revenues don't meet that figure, Take-Two will have to return some of the advance, according to Pachter. But he said that there's no reason to believe Take-Two would actually miss that revenue target.

He also stated, "By giving this advance, Microsoft did extract from Take-Two the promise to make [GTA IV content] exclusive. But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."

Next-Gen also contacted Microsoft for comment regarding the exclusivity deal, but the firm opted not to confirm the terms of the deal. "The quality, depth and breadth of our Xbox 360 portfolio is a testament to the great relationships we've established over the years with our third-party partners," read a prepared statement from Microsoft. "Just as we recognize how important their video game titles are to driving an unrivaled gaming experience on the Xbox 360, they recognize the immense value of having their titles on our platform. Xbox 360 is easy to develop on, we have the largest online social network on television with Live and we're in more homes than any other next generation console in the world.

"At the end of the day, our third-party publishers own their IPs and ultimately decide where they're going to take their franchises, and we're thrilled that they've made the choice to build for the Xbox 360. Microsoft does not comment on business arrangements with our partners."

Calls to Take-Two were not immediately returned as of press time.

Omnikryon

So,sony gets the content after a year what M$ paid $50 million for!! Nice move!

It's an advance you MORON. Microsoft doesn't lose any money. The 50 million payment is based on percieved profits.

If Microsoft doesn't make a profit, Take Two has to give the money back, orthe difference.

Or Microsoft makes a profit, in which the 50 million was well spent.

And the PS3 will NEVER see this content for at least a year (best case scenario)

Microsoft just slapped Sony in the face at no extra cost to themselves. Peter Moore must be laughing his tail off.

Get some manners to talk then come argue with me.

[QUOTE="Eddie-Vedder"]I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.Omnikryon

Ouch. :lol:

Well have extra contentMonths or even weeks atfer and The Ps3 will also have Exclusive Content ...

[QUOTE="Eddie-Vedder"]I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.lawlessx

read the post again..it said that the ps3 wont be seeing ANY new content for a while..wasnt talking about the content the 360 version is getting

I don't understand how MIcrosoft is getting it free. They are expecting over 3.5 million downloads of one game to make profit (if the downloadable content for the 2 is 20$ for each). If it is 10 $ for each they will need 7 million downloads. This will never happen. This means that almost every owner of gta 4 will buy the content. This is so unrealistic, that either the guy who thinks Microsoft is actually going to make profitis an idiot, or is basically lieing to himself.nhh12345

It's quite simple, if you had read what you quoted.

Microsoft gives $50 million. This would be T2's cut if the content pack revenues are 70million. When the content starts selling, Microsoft gets 100% of the revenue. If the content sells over 70 million, MS will start paying it's share to T2. If not, T2 will have to return the extra cash to MS.

Two scenarios:

1.- The content pack sells 100 million (any number over 70, just used 100 for ease of mathematics). Under these circumstances, MS will have spent $50mill and now have $50 mill in the bank. MS now owes T2 $20 million. Everyone's happy.

2.- The content pack sells 35 million. Under these circumstances, T2 has $50mill, and deserves $25mill. Microsoft gets $25 mill back, and all in all, nets a profit of 10 million.

MS does not lose a single dime... MS actually makes money in any way. All MS did was secure an interest-free, $50 million loan for Take Two, which is a very, very juicy bait for the company. No bank would ever give that to you.

I don't think MS is counting on the thing selling, although I don't see3.5 million downloads at $10 (it's two content packs for the 50 mill, not 50 mill per content pack) to be impossible to achieve during the lifetime of the 360.

[QUOTE="Omnikryon"]

[QUOTE="Eddie-Vedder"]I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.AgentA-Mi6

Ouch. :lol:

Well have extra contentMonths or even weeks atfer and The Ps3 will also have Exclusive Content ...

Read the article.

THE PS3.

Will NOT.

Get ANY.

Exclusive content, or any downloadable content.

WHATSOEVER.

until at least.

2009.

really? Didn't know about that; how much did they pay? I doubt it was $50 million...

munu9

Microsoft is essentially not paying R* anything, they are essentially giving them an interest free loan. However, by doing this, MS will not be able to earn interest on this $50 million.

However, there is a small downside for MS. If R* does not recover the $50 mil in revenue, MS will only get its money back. Assuming that MS would be paid back in October 2008 and the inflation rate is assumed to be 3.5%, MS's $50M in today would only be worth $47.49M in October 2008. Thus, MS would realize a inflationionary adjusted loss of $2.51M. Still, this is chump change to MS and could most likely be written off as a bad debt expense.

So I guess the PS3 won't get any kind of episodic content till 2009. This is waiting. And by that time you'll be paying for PSN aswell.

[QUOTE="AgentA-Mi6"][QUOTE="Omnikryon"]

[QUOTE="Eddie-Vedder"]I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.Omnikryon

Ouch. :lol:

Well have extra contentMonths or even weeks atfer and The Ps3 will also have Exclusive Content ...

Read the article.

THE PS3.

Will NOT.

Get ANY.

Exclusive content, or any downloadable content.

WHATSOEVER.

until at least.

2009.

Just to clarify, for those of you who are drawing the wrong conslusion from this sentence:

[...But there will not be any downloadable content for PS3, at least for some time. My guess is at least for a year."]

That does not mean the PS3 is getting the exclusive content..the keywords in that sentence are "ANY" and "GUESS"

What he is saying is thathe believes PS3 will be getting some DLC (not the exclusive 360 stuff) BUT... it won't be seeing that DLC for at least a year in his OPINION

[QUOTE="AgentA-Mi6"][QUOTE="Omnikryon"]

[QUOTE="Eddie-Vedder"]I won´t waste money on extra content either way, but it´s good to see that the PS will also get it.Omnikryon

Ouch. :lol:

Well have extra contentMonths or even weeks atfer and The Ps3 will also have Exclusive Content ...

Read the article.

THE PS3.

Will NOT.

Get ANY.

Exclusive content, or any downloadable content.

WHATSOEVER.

until at least.

2009.

I dont believe that, sony will pay to get us some extra content soon enough a one year waiting is completely unacceptable sony aint gonna let that happen I asure youman :wink:

I dont believe that, sony will pay to get us some extra content soon enough a one year waiting is completely unacceptable sony aint gonna let that happen I asure youman :wink:

AgentA-Mi6

Faith can move mountains but I'm not sure it can unwrite contracts. ;)