Its good for MS, not so much for EA.
EA has been trying for years to top COD and this could be it, at best MS will get content earlier like with CoD for Titanfall 2.
As for an explanation of the close relationship of EA and MS, my theory is EA loved the DRM thing so much from MS and they went with it and welp, it cost MS and EA sorta owes them. We all know EA loves that DRM bullshit.
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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.
ethomaz said:
The deals was made before the consoles launches when EA guessed Xbone will outsell PS4... after saw the thuth comming out I guess they won't make these kind of deals anymore. |
Well Microsoft will still try. They are kind of dependent on third party to mask their lack of internal prowess and make their console SEEM better. Good planning. EA wants strong third party sales and Sony just proved they could accomplish it so I think this will be one of the last unless Microsoft either starts to pass Sony or they make it worth their while again.
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S.T.A.G.E. said: Well Microsoft will still try. They are kind of dependent on third party to mask their lack of internal prowess and make their console SEEM better. Good planning. |
The point is I don't think any console business can survive making deals of $300-500 million... the console business didn't profit that per year... even MS knows Xbox never give that money back to them.
As long as Mass Effect remains multiplat, i could care less about the rest of EA's line up.
"Trick shot? The trick is NOT to get shot." - Lucian
ethomaz said:
The point is I don't think any console business can survive making deals of $300-500 million... the console business didn't profit that per year... even MS knows Xbox never give that money back to them. |
It will take years but yes, they can get that type of money back. Just not right now. They need to increase marketshare. Microsofts internal games arent much of an argument for themselves right now. They are saying "we have exclusives" but then they show you third party games. This is where Sony will truly start to shine.
To be fair I guess the Titanfall deal made before console launch was like $100-150 million... now the same deal will cost to MS $300-500 million because the gap in sales and possible future demand (PS4 is winning in both).
So it is not a good deal for console business anymore... it will kill the division with that deals.
Unless Titanfall make a turn around never sees before in this business and make the sales gap at least to be tied.
| Carl2291 said:
Im not so sure Titanfall missing out on the 85M+ PS userbase is a good thing for EA or the franchise. Short term, maybe. Long term, I just cant see it. Especially if EA are wanting this to compete toe to toe with the likes of Call of Duty and Destiny.
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I highly doubt MSFT would be advertising it the way they are if it would have ended up a timed exclusive. TF is good for Xbox and MSFT is good for TF, that's why its called a partnership. EPIC talked about this as well. When it comes to partnerships there is perks involved for both parties. Specially when it is a new ip picking a good partner is important and as i said before, there is no other company in the gaming business that is going to match massive marketing campaigns the way MSFT does. It would be foolish to think only one party benifits from a partnership. They wouldnt have agreed to it if they didnt see the perks in it.
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S.T.A.G.E. said: It will take years but yes, they can get that type of money back. Just not right now. They need to increase marketshare. Microsofts internal games arent much of an argument for themselves right now. They are saying "we have exclusives" but then they show you third party games. This is where Sony will truly start to shine. |
I agree but MS needs results ASAP.
If Titanfall didn't give them these results then I can't see they approving the budget for theses futures exclusivity deals like Titanfall.
Titanfall 2 is already planned and it is not this gen exclusive to Xbone anymore... Respawn didn't agreed with EA/MS deal... they already said that they want their games in most platform possible.
I played the game on PC... it is cool and fun for some time... it got bored fast... it won't turn to be a CoD... that's sad because it had potential if Respawn worked more in some parts.
| S.T.A.G.E. said: EA is pretty much carrying Microsoft right now. Microsoft knew who to pay and almost screwed over gamers to do it. Sony has proven to EA that the deal wasnt worth it. MS must've paid them over a billion for everything though. |
As well as MS is carrying EA. I dunno if you've heard, but EA is consistently named "Worst company in America".
They've had numerous flops...TONS of backlash over policies and broken games.
Battlefield 4
Simcity
Sims
Fuse (insomniacs last game before tanking)
Dead Space
Fifa (which actually sold the exact same game 2 years in a row, which changes only to the roster)
Star Wars TORtanic
Spore
They destroyed SSX
They are probably the worst dev and publisher around aside from Crapcom.
They had 65 iOS games this year and announced they didn't make any profit.
Just wow.
EDIT: And what was it they said? "according to internal sales estimates, we decided to go with the xb1". I agree consumerist. Worst company indeed.
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