Microsoft on GTA IV delay: good for business?

Microsoft‘s stand on Grand Theft Auto IV’s (Xbox 360, PlayStation 3) delay? Apparently, they are really happy the development, saying that this will “allow gamers to focus on the other titles in this yearÂ’s holiday lineup.” From a Q&A by the New York Post, however, there seems to be more to it than that.

 

First we have to go through a quick history. It’s been reported that Take-Two acquired US$ 50 million for 2 exclusive episodic content to GTA IV, a move that would have gone well for Microsoft when the game should have gone out on October. However, due to “certain elements of development prov[ing] to be more time-intensive than expected,” GTA IV got bumped to early 2008, past the holiday season when the market is at its peak.

The argument stands that the money was dished out so that Microsoft would gain the upper hand over Sony, a move most effective during the holiday season. The point that the New York Post’s journalist wanted to make clear is how Microsoft could be happy with GTA IV being delayed, past the holiday peak season, when it had shelled out US$ 50 million.

Microsoft being “giddy” about the delay doesn’t quite fit. The delay would seriously cut profits because it missed the holiday deadline, making their investment of US$ 50 million less effective than it should have been. Plus, the rumor that the delay was caused by programming issues with Sony’s PS3 certainly wouldn’t have helped since the “investment” was intended to funnel fans away from the PS3 and towards the 360. The discussion between the New York Post  and a Microsoft representative, formatted for your convenience, flowed as follows:

New York Post: Excuse me, but – the money Microsoft paid to Rockstar was quite a hefty chunk. Now I’m not saying this was a bad business move, but it was clearly designed to pull GTA-Sony loyalists to your side. So are you saying that the millions you guys paid out of pocket to get gamers into Microsoft hands for the holiday rush wasn’t wasted in any way?

Microsoft Rep: I never said we gave Rockstar money. I don’t think we ever…

NYP: I’m not asking if you said it, I’m suggesting that your plan was blown out of the water a bit because now there isn’t as much of a draw for “converts.”

Afterwards, there was “a brief, awkward silence.” The New York Post correspondent also claimed that there were “more assurances that … Microsoft is totally happy about GTA IV being delayed.”

So is Microsoft really happy about the delay? Maybe, but they’re probably having second thoughts about timing of their “investment.” Nevertheless, the exclusives will still ultimately benefit Microsoft, if not as effectively as it would have if GTA IV wasn’t delayed.

Via New York Post

Microsoft‘s stand on Grand Theft Auto IV’s (Xbox 360, PlayStation 3) delay? Apparently, they are really happy the development, saying that this will “allow gamers to focus on the other titles in this yearÂ’s holiday lineup.” From a Q&A by the New York Post, however, there seems to be more to it than that.

 

First we have to go through a quick history. It’s been reported that Take-Two acquired US$ 50 million for 2 exclusive episodic content to GTA IV, a move that would have gone well for Microsoft when the game should have gone out on October. However, due to “certain elements of development prov[ing] to be more time-intensive than expected,” GTA IV got bumped to early 2008, past the holiday season when the market is at its peak.

The argument stands that the money was dished out so that Microsoft would gain the upper hand over Sony, a move most effective during the holiday season. The point that the New York Post’s journalist wanted to make clear is how Microsoft could be happy with GTA IV being delayed, past the holiday peak season, when it had shelled out US$ 50 million.

Microsoft being “giddy” about the delay doesn’t quite fit. The delay would seriously cut profits because it missed the holiday deadline, making their investment of US$ 50 million less effective than it should have been. Plus, the rumor that the delay was caused by programming issues with Sony’s PS3 certainly wouldn’t have helped since the “investment” was intended to funnel fans away from the PS3 and towards the 360. The discussion between the New York Post  and a Microsoft representative, formatted for your convenience, flowed as follows:

New York Post: Excuse me, but – the money Microsoft paid to Rockstar was quite a hefty chunk. Now I’m not saying this was a bad business move, but it was clearly designed to pull GTA-Sony loyalists to your side. So are you saying that the millions you guys paid out of pocket to get gamers into Microsoft hands for the holiday rush wasn’t wasted in any way?

Microsoft Rep: I never said we gave Rockstar money. I don’t think we ever…

NYP: I’m not asking if you said it, I’m suggesting that your plan was blown out of the water a bit because now there isn’t as much of a draw for “converts.”

Afterwards, there was “a brief, awkward silence.” The New York Post correspondent also claimed that there were “more assurances that … Microsoft is totally happy about GTA IV being delayed.”

So is Microsoft really happy about the delay? Maybe, but they’re probably having second thoughts about timing of their “investment.” Nevertheless, the exclusives will still ultimately benefit Microsoft, if not as effectively as it would have if GTA IV wasn’t delayed.

Via New York Post