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

[dbot]

Bitmap Frogs said:

dbot said:

Bitmap Frogs said:

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

I think this may be part of the confusion.  Take Two removes a 25 million dollar liability from their books when they deliver each episode to MS.  They don't need to wait to see what the sell through is.  In fact, there is no indication that Take Two will participate in the revenue at all.  The repayment is the delivery of the software, there is no cash repayment.

 

 

You mean Take 2 won't see any revenue from the DLC?

In such a case, MS didn't pay for exclusivity. They funded development and basically had T2 play second-party, developing the two DLC packs while MS pays for development and reaps the profits.

I think that is possible.

Edit:  It is also possible that the 50 million was an upfront payment and MS will need to split the revenues.  If it is just a exclusivity purchase then I would say Sony spent it better.