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Forums - Gaming Discussion - How much do you think MS paid for Gear of War?

 

How much do you think MS paid for Gear of War?

$100m 27 33.33%
 
$200m 12 14.81%
 
$300m 10 12.35%
 
$400m 2 2.47%
 
$500m 5 6.17%
 
$600m 2 2.47%
 
$720m 0 0%
 
$1 Billion 6 7.41%
 
On a contract - Epic get ... 6 7.41%
 
Other (post) 11 13.58%
 
Total:81
kowenicki said:
By the way...

Epic market cap is $500m

$500m for gears IP....?

Lol.

yes-you are one of the few here who can guess Gears longterm/overall potential and i'm pretty sure you'd be the last to sell this franchise for just 100mio or below ;)



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less than 100m which i can't click.

you seem to forget some important points. as example that epic games can work on another game instead so that it's not as if they would lose all the money they could make with a gears game. if they won't work on gears the same employees will work on unreal or something instead.

or that microsoft was the publisher and epic games didn't get as much money as you might think. or that microsoft made the game so big with enough advertisement. if they would work on a new gears game for ps4 and xbox one they would need another publisher or pay for advertisement themselves.



fps_d0minat0r said:
kowenicki said:
Less than all of those numbers would be my guess.


Less than that is what they would have made even if they kept it.

Epic is making the shift towards mobile and free to play games. The Gears IP woul've just been sitting there unused.



less than 100m. MS would need to sell like 10m copies to profit from one game if they paid more than that. 100m + development cost + advertising = a bucket load)



kowenicki said:
SxyxS said:
kowenicki said:
By the way...

Epic market cap is $500m

$500m for gears IP....?

Lol.

yes-you are one of the few here who can guess Gears longterm/overall potential and i'm pretty sure you'd be the last to sell this franchise for just 100mio or below ;)

you disagree with me?

you think more than $100m, perhaps you agree with the OP, who thinks they paid the value of the entire market value of Epic for it?

No i didn't dissagree with you about 500 mio.

I agree with you in that term.That's why i wrote  "yes",

but i disagree with you that MS has paid less than 100 mio(i#ve explained in a previous post why.Feel free to prove my post wrong)

 

btw i can imagine that eg GTA franchise could be sold above the market value of take 2 under certain special circumstances,though it is not very likely(eg the market value is strongly underperforming(market value does not always represent the real value) but it is impossible to aquire the entire company.

 

But:Please answer my question?

Would you sell a franchise that can generate with one single game 200mio dollar profit for less than 200mio?

or to be more precise:Imagine you own the gears IP.For How much money would you sell it to a company that has tons of money?(minimum ?)

I still say 200mio or 100mio + bonuses in the following 10 years 



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kowenicki said:
SxyxS said:
kowenicki said:
SxyxS said:
kowenicki said:
By the way...

Epic market cap is $500m

$500m for gears IP....?

Lol.

yes-you are one of the few here who can guess Gears longterm/overall potential and i'm pretty sure you'd be the last to sell this franchise for just 100mio or below ;)

you disagree with me?

you think more than $100m, perhaps you agree with the OP, who thinks they paid the value of the entire market value of Epic for it?

No i didn't dissagree with you about 500 mio.

I agree with you in that term.That's why i wrote  "yes",

but i disagree with you that MS has paid less than 100 mio(i#ve explained in a previous post why.Feel free to prove my post wrong)

 

btw i can imagine that eg GTA franchise could be sold above the market value of take 2 under certain special circumstances,though it is not very likely(eg the market value is strongly underperforming(market value does not always represent the real value) but it is impossible to aquire the entire company.

 

But:Please answer my question?

Would you sell a franchise that can generate with one single game 200mio dollar profit for less than 200mio?

or to be more precise:Imagine you own the gears IP.For How much money would you sell it to a company that has tons of money?(minimum ?)

I still say 200mio or 100mio + bonuses in the following 10 years 

Well you are guessing that it would make $200m profit.  I doubt that.

But if they are getting $100m in for essentially nothing then that is always tempting.

Furthermore.... Epic recently sold 40% of its entire business to a chinese company for $300m.

$100m for just the IP of one game is already too much, $200m is silly.  $500m is insane.

Epic is making games for a chinese audience now anyways. They don't need Gears.



Every Gears game from now on will use unreal engine plus 200 million dollars and you got a deal



Terrible poll. Maybe $5 million at most. This is Gears of War, not Mario.



"On my business card I am a corporate president. In my mind I am a game developer. But in my heart I am a gamer." - Satoru Iwata

kowenicki said:
SxyxS said:
kowenicki said:
SxyxS said:
kowenicki said:
By the way...

Epic market cap is $500m

$500m for gears IP....?

Lol.

yes-you are one of the few here who can guess Gears longterm/overall potential and i'm pretty sure you'd be the last to sell this franchise for just 100mio or below ;)

you disagree with me?

you think more than $100m, perhaps you agree with the OP, who thinks they paid the value of the entire market value of Epic for it?

No i didn't dissagree with you about 500 mio.

I agree with you in that term.That's why i wrote  "yes",

but i disagree with you that MS has paid less than 100 mio(i#ve explained in a previous post why.Feel free to prove my post wrong)

 

btw i can imagine that eg GTA franchise could be sold above the market value of take 2 under certain special circumstances,though it is not very likely(eg the market value is strongly underperforming(market value does not always represent the real value) but it is impossible to aquire the entire company.

 

But:Please answer my question?

Would you sell a franchise that can generate with one single game 200mio dollar profit for less than 200mio?

or to be more precise:Imagine you own the gears IP.For How much money would you sell it to a company that has tons of money?(minimum ?)

I still say 200mio or 100mio + bonuses in the following 10 years 

Well you are guessing that it would make $200m profit.  I doubt that.

But if they are getting $100m in for essentially nothing then that is always tempting.

Furthermore.... Epic recently sold 40% of its entire business to a chinese company for $300m.

$100m for just the IP of one game is already too much, $200m is silly.  $500m is insane.

is it so hard for you to write down the number you'd sell this franchise for ?

I am still waiting because i'am pretty sure our numbers will be pretty close.

 

now to the profit of one single gears:

200mio profit with 1 Game:=

5mio retail copies for 25 dollar/profit/copy= 125mio dollar

1.5mio digital sales :profit 45 dollar/copy:=67,5mio dollar profit

that's 192 mio dollars with one single game without ,SE,DLC's ,without merchandising etc

(I used conservative numbers as i ignore the +profit of the european versions.Exchange ratio dollar :euro =1:1.3 while the games are sold for the same prize 60dollar usa/60euro in europe)

 

That Epic right now does not want to make another gears has no impact on the value of the franchise.just like You don't need to drive your Ferraris GTO to keep its value.

 

Your arguement with infinity blade:

infinity blade is the biggest succes considering the ratio of investment:profit.Like a B-Hollywood movie for 5 mio generating 30mio profit(600%) while the 100mio AAA movie is generating 300mio(200%) while overall generating 10x more than the b-movie.That's not a fair comparison because the B Movie is still the tiny guy(.+ it is very  reasonable and usual  for a small company to prefer smaller investments.For Epic Gears is big investment for MS peanuts)

Btw-Even if eg nintendo gets in very much trouble.Stock value flash crashes below 500mio market value you won't get the mario IP below 500mio.

+you say 100 mio is too much for a single IP?I'll prove you wrong with you

Imagine you are the Microsoft Boss and not interessted in games and want to get rid of the xbox division.Imagine i'd workfor you and sell Halo IP for 100 mio(and Sony would pay even 200mio to get it)

You would beat the shit out of me and you would sue the shit out of me because of the low prize.



$50 million



    

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