Xbox and EA Deal - Worth it? Whats next?

[kitler53]

ethomaz said:

kitler53 said:

eh, not necessarily true.   if MS is willing to pay enough EA will take the money.  From a business perspective "a bird in the hand is worth two in the bush".  businesses dont' like risk and if MS is willing to pay for the entire development cost (just as an example) that project is then no risk to EA and probably going to get green lit.   it just depends on how much money MS is willing to spend.  ...but the price goes up the more ps4 outsells xbox as MS has to cover the opportunity costs as well.

Do you think eg. Titanfall can sell 2 milllion copies on PS4? 2m at $40 = $800 million... I guess publishers received 20-40% of the money... so $160-320 million to EA with 2 million sales (look I removed all the devs costs and everything else)... I think it won't sell only 2 million on PS4 after the grow of userbase and a lot of sales will come from $60 and not $49.

The MS deal is to cover the development of the game like $100 million...

I don't see EA making this deal again... bigger the userbase = bigger the profit from the game... so I don't see MS paying $500 milllion to exclusivity when PS4 reach 10 million user base for example.

$500m for a game will kill the game division because hardly any company will cover that with the profit made by the Game divisions... console business didn't give that money to the fair.

like i said, 100M in hand is worth 200M in the bush...

these deals were made A) before knowing which (if any) console would sell well B) before EA had any idea if titanfall would resonate with the consumer or not

hind sight is always 20/20 but i'll bet the guarentee of profitability looked very reassuring to an EA that didn't know what it knows now.   knowing now that ps4 is doing amazing and that titanfall is resonating with consumers titanfall 2 exclusivity will be A LOT more expensive.   ..probably out of MS's price range.  MS advantage was buying up the rights at the most oportunistic time.