Who probably spent their $50 million better: Microsoft or Sony?

[Bitmap Frogs]

dbot said:

Bitmap Frogs said:

Just google it, there were plenty of articles on the deal.

In a nutshell, MS gave T2 50M$ to be repaid with GTA4 DLC revenue. If the DLC does good, MS gets the money back - if it tanks, the money's lost.

I guess the most proper term would be a loan/bet.

 

I have googled it.  Some forum sites refer to it as a "loan", but I think they are just confused about basic accounting principles.  It was briefly discussed by Take Two at the source I provided as a purchase.  Unless someone can provide additional information, I think you should stop referring to it as a loan.  It seems like MS purchased 2 episodes of DLC and prepaid the 50 million for exclusivity.  Take Two is liable to deliver the 2 episodes before they can remove the liability from their books.

 

But T2 will have to repay those 50M$ from the DLC revenue.