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Forums - Sales Discussion - Take Two explains poor Grand Theft Auto IV DLC and retail sales

ROFLMAO...poor sales...I'll the people yupping this nonsense "strangely" have no Xbox 360 on their tags...lol. If 3-4 million LTD for the 2 DLCs is poor, on top of 6-7 million for the full game...I'm curious as to what standard is being used.



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- too long after the game release

- next gen GTA ==> MW2 !

- do you know PS3 ? are they released on PS3 ? ....

conclusion : thank you MS for your "exclusive bullshit deal"

EDIT : to all :
well, those sales are neither poor, neither stellar, but they seem to be inferior to what they expected ...



Time to Work !

Lastgengamer said:

http://gamer.blorge.com/2009/12/18/take-two-explains-poor-grand-theft-auto-iv-dlc-and-retail-sales/

The software sales for the DLC expansions to Grand Theft Auto IV have not been up to expectations. This lead to a series of questioning at a Take-Two investor call where the company’s boss was drilled as to why this happened, despite fantastic claims made in the past.

 

According to Joystiq, during a Take-Two investor call questions were raised as to why the performance of GTA IV’s DLC and retail bundle performed poorly. I wrote a story in reference to the lackluster sales of the GTA IV DLCs not that long ago. The two DLCs were sold at retail, and managed to move a measly 160k over two months. It is not clear how well the DLCs sold via XBL, but the investor call indicates those sales weren’t that stellar either.

Strauss Zelnick chairman of Take-Two stepped up on the call to offer an explanation as to the poor performance of the DLCs and retail offering. According to Zelnick the release timings of the DLC and retail copy contributed to the lackluster sales.

Zelnick stated, “both we and Microsoft believed there was a big market for GTA 4 episodic content and some factors affected their performance.” He continued by saying, “both were released significantly after the launch of the core unit.” The Lost and Damned came out 10 months after GTA IV’s release, and The Ballad of Gay Tony came out recently, about 18 months after release.

Joystiq does bring up an interesting point by quoting things said at the Microsoft press conference in 2006, where Take-Two and Peter Moore made some bold statements.

Calling the two companies’ relationship "a historic, strategic partnership" – remember this? – and calling the episodes themselves "profitable contributors to the company" – Joystiq 

I have to agree with Peter Moore, $50 million for two DLCs is indeed a “historic” partnership between Microsoft and Take-Two. I’m sure it will go down into the history books along with the PS3’s launch price and the RRoD.

So if the DLC sold 160k, thats 5 times more than Ratchet and Clank 2 PS3 sold in it's first NPD. And almost as much as GT5P sold it's first NPD (it never charted after that) Not bad if you ask me.



why are people bringing in ps3 titles to the thread?
OT: i dont believe this to be honest, it should of been highly profitable by now



Maybe they mean 'poor' because they had the expectation that more than half of GTA4 buyers would buy the DLC.

Anyway for DLC those numbers are fine.



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I think they were judged as 'poor' by Take Two judging by the investor call comments. Perhaps they thought the attach rate would be much higher and factored that into their financials.

I see this two ways:

1 - the DLC may have performed fine and it just makes a handy scapegoat for their overall poor performance

2 - the DLC did perform below what they needed and while the unit sales seem fine to us (assuming the over 1M for LAD is accurate) from a corporate point of view the sales were nonetheless not enough for the investment.

I've always wondered at the cost here, and what the terms were. I mean, Uncharted 2 cost $20 million to make, I believe Halo 3 was roughly the same, how did two DLC episodes cost $50 M to fund? Or was the $50 M covering development plus marketing, etc? I just never understood the $50 M in the first place - it always seemed high for DLC.

Guess in the end what this means is that their expectation for what DLC for GTAIV could do was unreasonable vs the general market for DLC.



Try to be reasonable... its easier than you think...

They were probably poor because GTA4 sucks. Or MS did a terrible job marketing them. Something. I could tell there was zero hype about them



Decent figures... but not stellar. Its an old title now. DLC should have launched 3-6 months after, not 10-18 months after



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I knew they wouldn't make there money back from the DLC.

They sold very well, but knowing that it probably cost a lot to develop them, these sales definitely weren't enough to make profit. Hopefully they don't make this mistake again OR release it on both the PS3 and 360.

Also, it took way too long to develop the Episodic Content, I didn't buy it because of the long wait and I stopped caring.



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