I was just searching for trailers of LA Noire and found many articles that said that it is a fully funded project for PS3 by Sony from Rockstar.

I know this was earlier part of three exclusive games that Rockstar promised Sony in exchange of the GTA 4 exclusivity.But I never knew that LA Noire was fully funded by Sony.

So what is happening here?Is Sony trying to earn money from 360's version of LA NOIRE.

Would seem odd since it's now multiplat. Perhaps Sony re-allocated their funds to Agent?

I'm guessing a deal was made for when they would finish the game... likely it would have a deadline (fall 2008) but they failed to make that thus losing the deal with Sony.. so going multiplatform seem a good idea to make more money..

Or they paid Sony to get out of the deal..

I think the funds put into LA Noire are going into Agent instead. As far as I know the deal was only ever for one exclusive.

Interview LA Noire
http://www.eurogamer.net/articles/i_teambondi

Kristan Reed: How are you funding the project? Has SCEA given you an advance or is this self-funded and totally independent?

Brendan McNamara: The project is wholly funded by Sony Computer Entertainment America. We have a long-term exclusive arrangement with SCEA.

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Seems strange... guessing the "long term" has expired..

No - Sony backed it early and then pulled out after amassing $20mill in costs with very little to show, no working engine, just some basic interface and graphics assets. Sony asked Rockstar for their next franchise IP exclusively in exchange for writing this debt off. Rockstar said yes.

Sony retrackted on funding the game and put the funds into Agent instead, why? who knows....probly the game was too costy?

I also did some research a while back and read that the boss of Bondi had some personal problems with some Sony boss and when Ken Kutaragi left, Sony stopped paying for the developement.
Can't remember the full story, but it was something like that.

yeah that cud be the case

the deal between sony and rockstar was for 3 exclusives whether old franchises or new

Do you have any links to support this?