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So there were many posts about MS paying $50M to Take-Two for DLC for GTA4. Many thought MS would pay anything for that exclusive content, and wondered if MS would ever make it back.

First I want to clarify this payment. Take-Two recorded the payment as 2 x 25 Million dollar payments for 2 (Yes 2) installments of DLC. This was a PRE-PAYMENT of monies that would be paid to Take-Two when the game sold, if it didn't sell Take-Two has to refund MS a certain % of the pre-payment.

MS takes 30% cut for DLC with 70% goes back to the developer, so how many copies of the DLC does MS have to sell to justify the transaction ( without receiving a refund from Take-two)

Assume the content will sell for 1/2 the retail price of a new game =30USD
$50,000,000 / ($30*.7) =  2.3Million units to break even.

Now we must also remember that there are two DLC installments, which means that each installment (assuming equal penetration which it wont be) would have to sell 1.15Million units. Considering the current install base is 6.38 Million Units, breaking even in this investment will be very easy for MS.

But MS also gets more value than this. Bring out two installments of DLC means that the products marketing (and Buzz) will be extended, and most likely will drive more retail sales of the original game, reviews of the DLC will also remind or inform people of this game(it will help the PS3 GTA version also). The DLC will be advertised through XBOX live, and I would bet MS has a new promotion aimed at the retail stores for GTA4 which should increase the install base of GTA4.

Basically what I am trying to say is that GTA4 DLC is a positive for MS, it will sell, it should be profitable and only available of Xbox360, which will only sour(if only slightly-but this will be dependent on the HYPE or Buzz of the DLC) "diehard GTA" fans who brought GTA4 on the PS3.

For all those who thought MS was nuts paying Take-two $50million, well think again.

Does anyone really care? Its been so long and many gamers have been dissapointed with Gta4, is 50m really a wise investment only time will tell.

That ad on the VGAs looked pretty good. But nice to see the breakdown on how their transactions work.

I wasn't disappointed with GTA4... in fact I found it's narative to be far better than the previous games and it's world more interesting then GTA:SA

GTA4 was a great game but what frustrated a lot of people were the stupidly high review scores - it was not a near perfect game.

GTA4 downloadable content cannot be evaluated with your techniques. In my opinion it was always all about trying to get more hardware sales by having a GTA4 on the 360 that was not only the same game playable on the PS3 but also had - for the hardcore fanbase who knew - exclusive content.

MS will do a huge marketing campaign in time for the new content and will make their money back.

It is also a great way to get the GTA fanbase buying live points and then exploring other downloadable content.

I for one wont be getting it, Im still only 36% completion. I force myself to start playing it again, but after 30 minutes its back on the shelve again. Why would I want to buy more of the same, if what I have already I have no desire to play.

I stopped at the second Island I don't care about this DLC.

I look forward to the DLC. MS will be getting my money.

How many people really finished this game?
It was so repetitive that I had to force myself to finish it just for the sake of $60.

I don't even touch the game anymore now...

Yeah I was done with the game and I even sold it...but that ad on VGA awards blew my mind...Ima pick it up again.

So yes, DLC is a win for MS...