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kowenicki said:

why cant people understand this? Its basic.

it doesn't mean ms paid $3bn or owes $3bn

it means the deal to provide it could be worth $3bn to the company.

it is entirely dependent on sales of the new consoles.

 

The deal is valued at 3bn over multiple years.

Hasn't Microsoft said they expect to sell up to 1 Billion consoles? Sounds over-valued if this was based on those projections.