binary solo said:
highly unlikely square got paid enough to make this game profitable for them after just 1 million in sales if all MS gets in return is just 3 month's total exclusivity and 1 year console exclusivity. If Square wanted to be profitable at 1 million in sales they would have needed to give MS permanent Xbox exclusivity. Not being profitable at 4 million in sales for the reboot means what, a cost to market of $180 million? MS paid Square $140 million odd for a piddling 3 month's full exclusivity? I don't think so. MS might have money to throw around, but the execs aren't stupid with money. An investment still needs to at least theoretically make a financial case. And considering MS needed to go to considerable lengths to keep holiday sales flat year on year instead of down, for MS it seems like paying Square $50 million for this exclusivity deal would be financially questionable.
So I think a more realistic assumption is that MS optimistically hoped for about 3 million in game sales on Xbox, and MS paid Square the balance between 3 million in sales and break even. Which is probably about 2 million in sales. What that does is make Pc and PS 4 sales almost purely profit as long as Xbox sales reaches about 3 million, which it could possibly achieve wishbone decent start it's had.
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I really wish we could know what Square was paid for this deal or just what deals like this are worth in general.
