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

[dbot]

Bitmap Frogs said:

dbot said:

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.

 

 

In other words, we don't know jack about the deal. Speculation would then be unsound, wouldn't it?

I guess you could say that is true if you completely disregard my previous post.  We do know that Microsoft gave Take Two 50 million dollars, and Take Two recorded a 50 million dollar liability on their balance sheet.  Take Two has given instructions that it will remove 25 million with the delivery of each episode.  I think this is what you are mistakenly referring to as a loan. 

"The first 25 is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second 25 will be for the second episodic, the episode, and that will be later in fiscal '08."  - Take Two from the F2Q07 conference call

What we do not currently know is what the revenue split is between Take Two and Microsoft for the sales of the DLC.  The point of my previous post was to ask for clarification as to why you call this a loan, when based upon all available information it is a purchase.  You are the one that is speculating, and you are not doing it very well.