Microsoft is paying an unprecedented $50 million for exclusive rights to publish two episodes of the forthcoming game, Grand Theft Auto IV, on its Xbox 360 games console, according to statements from a senior executive at GTA IV publisher, Take-Two Interactive.
Take-Two has already recorded the payments in financial filings as deferred revenue, explained Lainie Goldstein, Take-Two's newly appointed CFO, in a conference call with analysts.
First Xbox episode in March 2008
Microsoft is paying $25 million each for two separate downloadable packages that are expected to expand the Xbox 360 version of GTA IV with new play areas and features exclusive to Xbox 360 owners. The first will be released in March 2008, Goldstein said. Details of pricing have not been announced.
“The first 25 [million] is for the first episodic content package that's supposed to go out and that is in March of 08”, Goldstein said. “The second 25 [million] will be for the second episodic... the episode. That will be later in [the] fiscal year, fiscal 08”
While Goldstein did not specifically refer to GTA IV, Take-Two's most recent financial filings provide a list of forthcoming publications. The only episodic content listed is for GTA IV.
Remarkable scale of exclusive deal
The unprecedented scale of the $50m deal is indicated by the fact that it exceeds Take-Two's average quarterly revenue of $43 million received from all its Xbox 360 titles combined.
Take-Two subsidiary Rockstar, which is developing the game, plans to release GTA IV in on October 16, 2007. The initial release is expected simultaneously for both Sony's PS3 console and the Xbox 360.
Transcript of Take-Two comments
Goldstein made her comments on downloadable content in response to a question from Evan Wilson, a senior research analyst with Pacific Crest Securities' software team, during Take-Two Interactive's Second Quarter Fiscal 2007 Results Conference Call (link to streaming audio, requires free registration). The remarks come toward the end of the conference, at about the 40 minute mark. Here is Texyt's transcript of that section.
Evan Wilson, analyst: "And as it relates to the deferred revenue chunk associated with the... episodic content on Xbox 360, [I] can see that [unintelligible, assumed to be 25] million of that moved into short term deferred. Can you give us any sense of when that's going to hit the P and L [profit and loss statement], and will we see 25 million at one time and then the second 25 million or will [there] be a slow bleed onto the P and L?"
Lainie Goldstein, Take-Two CFO: "The first 25 is for the first episodic content... package that's supposed to go out and that is in March of 08; and that's why its moved into current, because its in the next 12 months. And the second 25 will be for the second episodic, [unintelligible] the episode, and that will be later in [the] fiscal year, fiscal 08."
Great news for 360 owners
I'm not a GTA fan, but as 360 owner, i think these are great news...
You think its great that nobody else can play these games?
You think its great that nobody else can play these games? Exclusive deals suck. Wouldn't it be better to just release it for all the consoles?
It's always good when there
It's always good when there are good news for your platform, it means that it's less likely to suffer from premature death and a consequent lack of games.
More extra's to pay for?
Are these episodes going to be free for game owners or do we have to pay? I like the console but I cant afford the extras.
Yea right. Can't afford the
Yea right. Can't afford the extras. $10 - 20 for an add on pack? Give me a break. Why should someone spend millions developing new levels, game-play features, etc. and have to give them away for free? Ridiculous.
As an X360 owner I'm pretty
As an X360 owner I'm pretty happy I'll get to play it, but this is bad news for gaming in general. I hope MS doesn't bully Sony out of the console business with it's large cash reserves and bully attitude. The consumers need the competition to keep MS building a reasonably decent console. Look at the crap quality their building now with the 360, I don't even want to see what they would build if they were the only player in the game.
I Could NOT say it BETTER...
I Could NOT say it BETTER... 100% AGREE, good you can see the full picture
With Microsoft, nothing is
With Microsoft, nothing is free, and it is not going to give away 50 million dollars, I am pretty sure they are going to charge a nominal fee for the downloads.
third party developers
50 million can create two AAA games title plus marketing. I firmly believe M$ miss the point that is the consumers choose the console, not the developers. Wii sold basically on first party games with little publicity. It cost one to four million dollars to develop a Wii game. 50 million budget can develop 12 to 50 Wii games.
On the other hand, Sony focus on first party games, just like Wii. That is wise decision, making custom traitor games for PS3 gamers. An end to end strategy.
3rd developers are like promiscuous girls who sleep with anyone has the most money or the market or good look. Xbox360 weakness is too depend on them. If they has change of heart, the joke is on M$.
How am i supposed to get the
How am i supposed to get the 50million? like what do i have to do?
You forget how Rockstar got
You forget how Rockstar got out of its other Exclusivity deals... Rockstar North anyone?
This sux, its obvious M$ are
This sux, its obvious M$ are paying $50 million dollars as a direct attack on the competition, (if this game is only available on xbox, then people are forced to buy xbox)
Rockstar would have released it on xbox for free, but no thats not good enough for M$, they want 100% marketshare and will pay anything to get it, they make or may not make money on the game, i doubt M$ cares, but they will win in the end because people will be forced to buy xbox, which is what this deal is really about
yep i was forced to buy an
yep i was forced to buy an x360.
i did have a ps3 but i sold it and got a 360, i do regret it a bit. because i know the ps3 will get better in the next year. but the 360 did bully the ps3 out of exclusive gta iv content and i did fall for that...
what the hell, why does
what the hell, why does microsoft have to get all the exclusive episodes for xbox, that just sucks that ps3 owners cant play these episodes
...
as a PS3 owner, This makes me sick. MS always gets exclusives like Halo and fable and stuff. GTA became popular by becoming big on the ps1 and now theyre screwing sony it wouldve been cool if R* refused
screw R* and MS, i' m not
screw R* and MS, i' m not buying a junkbox just to play these games.
Junkbox?
Junkbox? Mate have you ever played one? They're brilliant and I know I'm glad they've paid the money.
Microsoft pays $50 million for Xbox GTA game exclusive
vuuv 50 million ! , and I love GTA
I need a windows 7 product
I need a windows 7 product key