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BengaBenga on 29 July 2008
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Outcast said:
BengaBenga said:

 

Please do the math: There4 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). 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.

You're looking at it in a very close minded way. With every exclusive Microsoft gains, profit and revenue will be gained exponentially in other areas. It's a knock-on effect - more people buy the 360 and future Microsoft consoles because they have more exclusives, these people will buy more software from Microsoft which will allow them to buy more exclusives and so on. If this does actually happen, Microsoft will have two of the highest selling and well known franchises in the Western world exclusive to their platform - Halo and Grand Theft Auto. They also have the majority of Sony's  exclusives on their platform from last generation.

Sony is losing brandname recognition and popularity with a lot of people. Many who have bought a Sony console this generation as their only console will think twice before doing so next gen.

 

Calling me narrowminded, while I'm explaining that Microsoft is more (a lot more) than its Game division is a bit weird, don't you agree?

To put it in perspective: Microsofts total revenue was $60 billion, Entertainment Division: $8 billion. Significant, but not very big. Operating Income: Group: $22 billion, Entertainment 420 million. Ouch.

In other words: Microsoft won't invest 2.5 billion dollar in adivision that has small impact on the total profit. It's clear that buying TT won't improve Microsofts standing much. Sure it would be a blow for Sony and sure it will sell some consoles, but nothing special. Besides next gen their main competitor is surely to be Nintendo, who doesn't even have GTA right now. Everything is relative.