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ChichiriMuyo said:
nightsurge said:
ChichiriMuyo said:
nightsurge said:
ChichiriMuyo said:
And there's absolutely no way it was as front-loaded as something with GTA in the name. That's the sort of product you expect to sell heavily up front, and if it doesn't have great legs R* is in trouble. They really don't make it worth their while unless the two DLC combined sell 5 million copies.

Um, Microsoft PAID RockStar $25 million up front for each DLC ($50 million total).  That's all money straight into RockStar's pocket.  I highly doubt they spent anywhere near 25 million in development per DLC so right off the bat they get profit.  MS is the only one left in the red until the units sell ~3-4 million combined for the two DLC's.

 

The $50 mil was a loan.  They have to pay it back through DLC sales.  They don't get anything until they pass $50mil in revenues between the two, assuming MS counts their usually 30% cut as part of the repayment.

I thought the arrangement was that if the sales did not reach a certain point, then part of that $50 million would have to be returned.  Othewise, if the sales targets were reached the money stayed with Rockstar and Microsoft just kept taking in sales profits.  Anyone know for sure, because I thought it was similar to this?

 

 

So your interpretation is that if R* hits certain sales targets MS will have been repaid the money they gave R* and if they don't they have to repay the difference?  What about that doesn't sound like a loan?  One way or another, MS is getting their money back. They made damn well sure of that.

Either way GTA4 made MS a fortune and this is probobly not going to chip away at that nugget.  I think that both parties are going to make out fairly in the end.  Additionnal PSN downloads of the content would have benefitted Rockstar more in the end though, IMHO