Microsoft's Grand Theft Auto exclusive: Is it worth $25M? |
Connect with TechFlash on our Facebook page for all the latest technology news headlines and commentary, plus information and access to special events, photos from events, promotions and more.
The Xbox 360's exclusive Grand Theft Auto IV add-on, "The Lost and Damned," debuted yesterday to generally positive reviews. That's good news for Microsoft -- especially considering how much the company paid for rights to the extra downloadable episode.
Seth Schiesel's New York Times review gives you a good sense for what $25 million buys a console company these days.
“The Lost and Damned” suffers from a few curious and unfortunate design decisions — players often have less freedom than in the original — that will probably prompt most to return to the original game after completing the new episode’s main story. But there is no question that it is the most fully realized, thoroughly produced and substantial downloadable add-on yet released for a console game. Anyone who enjoys Grand Theft Auto IV should get it."
For the record, we know how much Microsoft paid because of comments made by Take-Two Interactive finance chief Lanie Goldstein back in 2007. According to those comments, the company agreed to pay another $25 million for the second exclusive episode.
Of course, there are many costs and considerations, and the calculations I'm about to propose would make an accountant shudder. But consider that the episode sells for the equivalent of roughly $20 in Microsoft points. Based on that, Microsoft needs 1.25 million Xbox 360 users to purchase the content to generate enough revenue to match what it paid for the exclusive rights.
That seems relatively reasonable considering that, according to NPD data, more than 1.8 million copies of Grand Theft Auto IV were sold for the Xbox 360 in the U.S. in the first five days alone. And that doesn't count the extra marketing benefit of the deal. More than a few additional Xbox 360s were sold because hard-core gamers knew the company secured the rights to this extra content.
So maybe, in hindsight, Microsoft wasn't so crazy after all?
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
Follow, like, and connect to a broader audience for your company!
The Puget Sound Business Journal announces Social Madness: A Corporate Social Media Challenge, presented by Capital One Spark Business. This a local and national challenge that will spotlight the best social media programs of companies in 43 cities. The local challenge begins (following the nomination period) on June 1, 2012. The promotion will culminate in a national bracket challenge that will crown Social Madness champions in 3 categories based on company size. To see the official rules, visit http://www.socialmadness.com/rules.
For more information on how your company can participate, visit the nomination page here. Nominations are due May 15th.
BizDev Seminar Series - Leadership: Rallying People to a Brighter Future
Join us for this one-of-a-kind seminar series where you hear directly from the experts about hot topics to grow your business.
The skills to be effective as a leader can be learned. What are the skills and attributes needed to be effective top leaders? How do you tell what level your people are at, and what development skills each person needs? Workshop attendees will learn the answers to these questions and more.
Tuesday, May 17, 2012
8:30am - 10:30am
The Harbor Club, Seattle
Register here.