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

[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!

Who knows, it said atleast 1 year. It could be 4 before the ps3 even sees it. You dont know. It might even turn out to be never.

thats just too darn funny. MS losin more moneyresistancemang

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.

Did you READ the article?

ion they could make 2 AAA games themselves rather than hand over that amount to a company that is in constant litigation and has games that are banned in entire countries. All this so they can sell large scale episodic content to people where the majority has 20Gb drives and the rest have no HDD. Your right smart move. They will make a fortune selling proprietary HDDs. Choice FTW.

New IP sells if its good. See GeoW.

iwo4life

But that involves risk, and 2-3 years of development, so the money spent would involve a payoff by near the end of the generation, while it's not really sure that they won't lose money (it could flop, you know?).

What they did right now was add a big incentive for people to get a 360 or at least GTA for the 360 (for manticores), potentially increasing game revenue, and potentially increasing the amount of total purchasers of dlc... all for absolutely no expense!

What's the problem?

Well that's pretty lame in my opinion...I'm paying $60 for a game why spend another 10-20 bucks for "episodic content?" You know M$ is going to charge you as much as they possibly can for the content.SergeantSnitch

Right. I guess it's a lot worse than just not adding multiplayer and then charging you $10 for it.

Sony gets the same content for free 1 year from now so dumb move microsoft. :lol:Big_Greg

Heres example one.

Denial

"an unconscious defense mechanism used to reduce anxiety by denying thoughts, feelings, or facts that are consciously intolerable."

What I think is funny is how many PS3 users talk about how 360 users will have to pay for the DLC. When PS3 have to pay for DLC also. Here is one just announced for Tekken which will be $10 for a PSN download of extra content. I am sure a cow will say that is different though.

http://www.n4g.com/ps3/News-46742.aspx

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

Self owned, and i shouldnt have to tell u why but i will, take 2 has to pay them back if they dont make a profit, read the post

[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 ...

flat out lying/guessing FTL

[QUOTE="SergeantSnitch"]

WAIT WAIT WAIT!

You have to PAY for the "episodic content?" Is this some sort of joke?

TripleXAlexXx

You'll pay for your content too. Also, by that time you'll probably be paying for PSN...

WAIT WAIT WAIT, Rockstar spent time deveopling 20 hours of content and u expect not to pay for it? who do u think they are santa claus

Well that's pretty lame in my opinion...I'm paying $60 for a game why spend another 10-20 bucks for "episodic content?" You know M$ is going to charge you as much as they possibly can for the content.SergeantSnitch

I dunno maybe cause for 20 hours total of content for about 20 bucks its cheaper than wasting ur money on some crap game thats 60 and only 8 hours long? just cause its not in a nice case and on a shiny disc doesnt mean its crap, ask any1 who bought the shivering isles for oblivion it was well worth it

[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.CwlHeddwyn

well Sony used to pay for exclusivity for GTA- which is worse?

I'd actually say that timed exclusivity is worse i some ways than crippling one game version. xbox owners knew thatwhe they got SA they'd get the full game. SOny fans have no such knowledge.

The cow hypocracy in this thread is killing me and i have to point it out.

The reaction/damage control in this thread goes like this "ill only have to wait a year, lol at microsoft for wasting money"

Meanwhile, the same people use Unreal T3 and HAZE as ownage even though those are both times exclusives and will hardly be a year apart from the 360 realeases

so :lol: at all the cows and their awful logic, if waiting a year is NO BIG DEAAAAAAL then dont post about HAZE, UT, or any other timed exclusive

[QUOTE="CwlHeddwyn"]

[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.osirisomeomi

well Sony used to pay for exclusivity for GTA- which is worse?

I'd actually say that timed exclusivity is worse i some ways than crippling one game version. xbox owners knew thatwhe they got SA they'd get the full game. SOny fans have no such knowledge.

Oh no! I guess oblivion, the sims, guild wars, wow and half life 2 owners were screwed too. comming out with those expansion packs adding hours more to the game AFTER release. whats wrong with them!?!?!

Microsoft are VERY scared of Sony now. HAHAHAHA :lol: I laugh at this, 50 million for a timed exlusive content. dark-kate

So paying $0 for exclusive = scared? Sony buying GTA exclusivity for 3 years isnt scared though?

/end

Microsoft are VERY scared of Sony now. HAHAHAHA :lol: I laugh at this, 50 million for a timed exlusive content. dark-kate

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

How is it unfair.... you can buy a X360 (the better of the 2) if you want!