JNK said:
its always money and market share.
If you have more market share, you dont have to pay as much money. Thats it.
Ill explain by using an example:
There is the new titel "AAA" and both MS and Sony want to make it exclusive.
The production cost of the title are 50Mio Dollars.
They predict that the title will be bought by 10% of all console owners.
Example Ps4 + xbox one release:
1,3mio xbox one and 2,5mio ps4 sales =3,8mio sales. Profit per sold unit = 20 dollar = 76 mio dollar. (-50mio Dollar production cost = 26 mio dollar total profit)
So if sony want to get the title as a exclusive, 1,3 mio xbox sales would lack.
2,5 mio ps4 sales. profit per sold unit = 20 dollar = 50mio dollar.
Because of the lack of an xbox one version, development costs will drop 10mio dollar (porting costs and co).
So to make it attractive for the developer to release the game exlcusive for sony, sony have to pay x.
Profit 2,5mio ps4 sales + 10mio cheaper development cost + X > 76 mio dollar. == X=> 16 Mio dollar
So Sony have to pay more then 16mio Dollar to get exclusive rights.
Now Microsoft
Exclusive for microsoft = -2,5mio Ps sales. = 1,3 Mio XBox one (20 dollar profit per sold unit) = 26Mio dollar.
26 Mio Dollar + 10 Mio dollar (cheaper development without ps4) + x > 76 mio dollar. == X => 40mio dollar
So Microsoft need to pay more then 40 mio Dollar to get the same title exclusive.
Sony need 16 Mio; MS 40 Mio.
Both still have to pay. But the amount will vary, depending on the market share.
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/thread.
This post nails it completely. Well done. This is what a lot of us has been trying to say yet some people fail to see something as obvious as this. Its sad that this even needs to be explained as I would have thought it were common sense. sadder still that even with explanations like this some people still just don't get it.
Ignorance is bliss I guess.
