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Forums - Gaming - Who probably spent their $50 million better: Microsoft or Sony?

Hephaestos on 12 February 2009
Fei-Hung said:
just to give more statistics, gta4 sold just over 6.8million copies on the 360. Question is, how many of those people still own it. Let's just say 50% do. That's about 3.5million potential customers.

1) how many people will pay £10-15 for dlc? Let's just say 50%. That's just over 1.7 million. Soporentially, ms may may make around 6.8million
2) if kz2 sells 3million ltd they will make around £105000000 profit.

These numbers are just estimates based on probability but it gives you a rough idea.

 

if 7M copies sold, even if they sold it to other people it would still be 7M that still have the game....(you can account for stores buyback but that is likely less than 1M)



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Fei-Hung on 12 February 2009

profit-revenue was my mistake. However, do you think ms will have no marketing campaign for gta4? They may not Market it aswell as geow or halo, but if they spent $25million on a game, there will surely want to advertise its exhistance.

Yes, I don't know how many unused copies are sitting in stores, but what percentage of 6.8million do you believe will pay half the price of a full game on a dlc, when titles such as halo wars and ninja blade are just round the corner and games such as re5 and sf4 are available for £15-20 more? Not can you physically own them and trade them when you are done, but they are brand new IPs! Gta4 dlc is in competition with all of them.



Cueil on 12 February 2009
GJ23 said:
Sony - $50 million
KZ2 campaign - 6 to 10 hours of an immersive, fun and technically brilliant game


MS - $50 million
L&D Campaign - 10 to 12 hours of an overrated and very boring game


As a gamer I would say Sony!!!

 

 

so where did you score a full copy of both games at? 

 



 
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Cueil on 12 February 2009
Fei-Hung said:
profit-revenue was my mistake. However, do you think ms will have no marketing campaign for gta4? They may not Market it aswell as geow or halo, but if they spent $25million on a game, there will surely want to advertise its exhistance.

Yes, I don't know how many unused copies are sitting in stores, but what percentage of 6.8million do you believe will pay half the price of a full game on a dlc, when titles such as halo wars and ninja blade are just round the corner and games such as re5 and sf4 are available for £15-20 more? Not can you physically own them and trade them when you are done, but they are brand new IPs! Gta4 dlc is in competition with all of them.

 

 There is an asston of new 360 owns... something like 6 million more than there was at the launch of GTA4... so for what 40 bucks you can get GTA4 and a expansion pack?  If Microsoft get the 70 percent of the price they'll recoop their investment pretty fast.



 
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Fei-Hung on 12 February 2009

here is a link for some of the top sellind xbl dlc games to give a better idea how dlc sales go:

Http://news.vgchartz.com/news.pup?id=1781

As far as I know, non of these games required an original full game for the dlc to be valid and probably have sold more since the article was posted.



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tuoyo on 12 February 2009
kitler53 said:

calling KZ2 a 9-12 hour game is a distortion of the facts, you know it's a distortion of the facts and that makes you a fucking idiot.  the only one crying here is your mother having to know she raised such a huge failure.

 

Lol.  Hope you don't get into trouble for that cause even though it's a bit harsh it's also quite hilarious.

 



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dbot on 12 February 2009
Bitmap Frogs said:
dbot said:

I think that is possible.

Edit:  It is also possible that the 50 million was an upfront payment and MS will need to split the revenues.  If it is just a exclusivity purchase then I would say Sony spent it better.

 

 

In other words, we don't know jack about the deal. Speculation would then be unsound, wouldn't it?

I guess you could say that is true if you completely disregard my previous post.  We do know that Microsoft gave Take Two 50 million dollars, and Take Two recorded a 50 million dollar liability on their balance sheet.  Take Two has given instructions that it will remove 25 million with the delivery of each episode.  I think this is what you are mistakenly referring to as a loan. 

"The first 25 is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second 25 will be for the second episodic, the episode, and that will be later in fiscal '08."  - Take Two from the F2Q07 conference call

What we do not currently know is what the revenue split is between Take Two and Microsoft for the sales of the DLC.  The point of my previous post was to ask for clarification as to why you call this a loan, when based upon all available information it is a purchase.  You are the one that is speculating, and you are not doing it very well.

 

 



Thanks for the input, Jeff.

 

 

Wyku on 12 February 2009

I just got a 360 on Boxing Day so I haven't had a chance to pick up GTAIV yet, but the DLC pack actually interests me more than the regular game so I'm really considering picking it up. I can get both new from Amazon for $50 CDN (using the trusty $10/off "first time order" coupon from making a new account) which is $20 cheaper than if I had bought the game brand new when it came out. This is just one example of course, but not everyone (or even 50%) of people who bought GTAIV traded it in it either (if they did, I'm pretty sure EB Games wouldn't have it as one of their most wanted games: http://www.ebgames.ca/graphics/pdf/mostwanted_en.pdf). I think it's a win for MS even if they don't sell the 1.25mil copies of DLC because of the people who chose to buy GTAIV for 360 rather than PS3 knowing about the exclusive DLC, ESPECIALLY if they decided to buy a console in addition to the game.



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Jereel Hunter on 12 February 2009

Lets not forget to take into account one BIG aspect of Microsoft's decision - for a lot of people, knowing MS had the DLC coming made them buy the 360 version over the PS3 version. 6.8 million copies of GTA IV sold on the 360, right? How many of those buyers had the scales tipped to the 360 side knowing it was coming? Tons of people (expecting it to be better) bought the 360 version considering it the 'definitive' version with the new content coming. What if the new DLC caused 750k, or a million(or more) people to buy this version instead of the PS3? That all goes toward making the investment a worthwhile one.



dbot on 12 February 2009
Jereel Hunter said:
Lets not forget to take into account one BIG aspect of Microsoft's decision - for a lot of people, knowing MS had the DLC coming made them buy the 360 version over the PS3 version. 6.8 million copies of GTA IV sold on the 360, right? How many of those buyers had the scales tipped to the 360 side knowing it was coming? Tons of people (expecting it to be better) bought the 360 version considering it the 'definitive' version with the new content coming. What if the new DLC caused 750k, or a million(or more) people to buy this version instead of the PS3? That all goes toward making the investment a worthwhile one.

I guess you saw the 5.4 million number for the PS3 version.  The PS3's attach rate is 27% and the 360's is 24%.  It may have pushed a couple of extra sales to the 360, but you would expect the difference to be much greater since there are about 8 million more 360's.

What would you rather have GTA4 with AAA DLC, or GTA4 with a AAA game (Killzone 2)?

 



Thanks for the input, Jeff.