Outcast said:
BengaBenga said:
Jereel Hunter said:
BengaBenga said:
Not going to happen.
Microsoft has its hands full covering their core business. Their getting passed on all sides there. They're not going to do a take-over for a department that just this year made its first profits.
Besides that, the costs can never be recoverd by putting TT's games only on 360. You have to remember that buying a publisher to become a first party will decrease the software sales dramatically. And since GTA4 is already out the door, the main competitive edge is gone as well. |
Remember one thing, Microsoft made clear more than a decade ago that they intend to get their products "right" by version 3. They put out a product, and they have a vision, and they intend to get it on the mark to be just right and profitable in its 3rd iteration. This purchase would position them perfectly for the next generation. It would give them a strong hand now, and a HUGE boost for the X-box 3. Having GTA5 be exclusive would boost the xbox brand as much as Halo... And likely give it much greater inroads into Sony's diehards. |
That's all well and good, but a take-over has to be approved by the shareholders and since a TT first party won't help solve the problems Microsoft is having in its core business AND the deal won't ever make Microsoft money it won't be approved. It's that simple.
Everyone has seen how much consoles GTA sold, sure an exclusive one would have sold some consoles, but not anywhere close to being worth 2.5 billion investment.
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It's not just the amount of consoles that will be sold, but the amount of games sold. They will be the producer and see a sizeable chunk of revenue and profit from the 10 million+ selling franchise. It's also another one-up they will have on their main rival Sony - they have lost the majority of their big exclusives from last generation and simply don't have the money available to buy them back next generation.
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Please do the math: There will be about one GTA every 3 years. Let's say it sells 10 million (which I highly doubt on a single platform, not a Sony platform on which the series became big and the hype died a bit with 4). That will be around 300 million dollar in revenue, if we take a $30 per game slice for the publisher+developer (which is reasonable). The development of GTA4 costed $100 million. So on GTA your talking about a $200,- million profit. In 3 years. That's not by far enough to warrant a take-over. They won't ever be able to get their money back. Not even close
Sure TT has other franchises, but those are not so important since others make that kind of games too. Midnight Club and the Sports games all have competitors, they won't be an enormous advantage for 360 or the next Xbox.
And again: ENTERTAINMENT IS NOT MICROSOFTS CORE BUSINESS. They have loads of trouble in their software and internet divisions right now. That's their bread and butter, they'll have to fix tht first.
