Mr Puggsly said:
Nice guesstimates. I doubt MS would have bought a company for that much that's is completely unprofitable. It ran for 8 years and it had support from major publishers. Perhaps MS felt it was no longer worthwhile to operate or it did begin to bleed money. We really don't even know if they were in the red. |
Well Microsoft did pay more then 200-mill for Rare. So 400-mill for a big advertising company is plausable if not probable. It did have support from major publishers but when Microsoft's X-Box team themselves decide to go internal theirs got to be a problem. Also with EAGames leaving their was likely major problems.
I doubt that the company was able to make back profit. Look at Rare for example it has failed to sell big amounts of software for any of its titles yet Microsoft has not dissolved them. You know Microsoft must have been loosing something to shut them down.
Plus my estimates aren't really mine they are estimates about how much Microsoft purchased them for 200-400 mill (Not mine) and I simply estimated over eight years it probubly would have cost them another 100-mill in operating costs.
In the end I can't see Microsoft shutting them down if they were making money and were in the black. Anyways the closure of any purchased entity is pretty much a failure, especially if its clientel was leaving in droves and their own company leaves them.
-JC7
"In God We Trust - In Games We Play " - Joel Reimer







