the-pi-guy said:
I'm not sure why you cut out the part where I mentioned that:
>The alternative is probably paying a few hundred million dollars to get out of the marketing contract. (I don't know the exact amount, but considering how big CoD is, it probably is pretty decently sized.)
I would imagine the backing out part of the deal probably isn't 2 million dollars. It's probably a few hundred million dollars. Call of Duty is a billion dollar a year franchise, and the contract is almost certainly for multiple years, and it probably has a huge value attached to it because of that.
Secondly, it's not exactly great practice to buy out of your contracts.
I think it's important to keep in mind that MS isn't buying Activision, hoping to turn a profit in 2 years. These are going to be very long term plans. MS isn't going to be upset because they continue selling Call of Duty on another platform for a few years.
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Not sure why I cut it out indeed :) Was just to make the post shorter!
I think you are greatly overestimating the amount tho. Of course I'm talking out of my ass and we have no way know but those are marketing deals for advertizing, numbers are probably in single or 2 digits of millions, not 100x. Still a lot a lot anyway.
The second part is true, they will probably not buy out the contract and if there is a multi-year deal, it will stay there.
But at the same time, Sony had to post that Twit and Microsoft did the same about the "desire"... I really believe, those 2 are playing games because it is not as simple as "fullfuling" something... :) Time will tell