Microsoft is a likely bidder for Take-Two takeover - GTA going exclusive?

[Dodece]

I would find such a move humorous. Mostly due to the Sony Defense Force members that would go entirely off of the rails. Despite the fact that Microsoft is actually quite bereft of first party developers, has allowed developers to spin off, and has actually been the friend to third party developers. To put it bluntly compared to both Sony and Nintendo. Microsoft is a benevolent figure on the gaming stage. So screaming the Microsoft is some evil force in gaming is just plain laughable.

That said I highly doubt that Microsoft would or will purchase Take Two. Microsoft has a winning strategy in place with regards to exclusives. They purchase them from third party developers. Why purchase a developer when you can still get their games exclusive to your console merely by purchasing the exclusivity. For the short term that is far more cost effective. Further more you avoid certain profitability issues in regards to console exclusive production.

Think of it in these terms for purchasing Take Two Microsoft could purchase two hundred and fifty exclusive titles paying out ten million per title. Even going to twenty five million per exclusive they could still purchase a hundred exclusive titles. They could basically bank roll a hundred exclusive titles. Now is Microsoft doing that no, but if they are just putting out fifty million dollars per financial quarter to do so. Then that means they are probably getting themselves three to five exclusive titles per quarter, and in the coarse of a year that probably equates out to fifteen to twenty exclusive titles. That is more then one decent exclusive per month.

Further more as time progresses they will be able to do that with more frequency as they divert that from Live profits. Think of it like this the more people that pay for live the more exclusives Microsoft will buy to ensure more people pick up live. That is a perfect revenue circle. With the added bonus that they do not have to deal with staff defections, faltering studios, or unprofitable studios. Which Sony at least does have to deal with. Not all studios that Sony picks up are money makers. A good number of them are eventually disbanded.

Bottom line is this Microsoft does not purchase third party developers. They have enough in house developers to plug holes in the library, and leave their capital liquid enough to purchase all the must have games they need.