Sony: Microsoft “writes cheques” for games thanks to first-party line-up insecurity

[Mael Duin]

http://www.vg247.com/2009/04/14/sony...up-insecurity/

Lies, no one uses cheques anymore these days!

SCEA hardware marketing boss John Koller has told VG247 that Microsoft’s apparent need to pay for exclusivity on certain products - such as the Lost and Damned - is borne from a self-perceived lack of strength in its first-party line-up.

“Microsoft has had a much more lenient policy to writing cheques than we do,” he said.

“We don’t feel the need to write cheques necessarily with every publisher, like they did with the Lost and Damned and some other titles, because we feel very strongly in our first-party line-up.

“I think it’s safe to say that we’d put our first-party line-up against anyone’s, and Microsoft and other manufacturers probably lead a little bit when they’re writing cheques about how they feel about their own internal line-up.”

Microsoft reportedly loaned Rockstar $50 million for two episodes of GTA IV DLC, although the figure’s never been confirmed.

The first episiode, The Lost and Damned, is rumoured to have sold in the region of 1 million units.

Koller was speaking at GDC last month.

[Fedos]

Well, Microsoft had opportunities to beef up their first party studios. They could have bought Bioware when they were up for sale and Bizarre Creations. What happened with Bungie probably couldn't be avoided though. Microsoft probably feels that having to maintain a wealth of first party studios is too costly, so they've scaled down, and instead have relied on second party (Gears for example).

[Dennis Dyack]

Perhaps MS feels that it's cheaper to pay for exclusives than to pay 10 different first party studios. Does that make it wrong because it's different? No.

My guess is that this is their business model going forward. They had the chance to get some great first party devs under their wing and chose not to. Different isn't always wrong.

[smiggy]

Perhaps MS feels that it's cheaper to pay for exclusives than to pay 10 different first party studios. Does that make it wrong because it's different? No.

My guess is that this is their business model going forward. They had the chance to get some great first party devs under their wing and chose not to. Different is always wrong.

What?

[R3D D3V!L]

Dyack got owmed by smiggy

[SnowHawk]

Dennis you need to think before you say anything else because what you just said is well ..... I'm not going to finish that.

[efs5030]

lol^^^^

[mickice]

The problem with Microsofts plan is that if they invest in 3rd party titles 3rd party publishers reek the benefits. Where as in SONY's game plan they spend big on games like Gran Turismo and it pays off. 10 million sales of almost each Gran Turismo a good enough justification? Hell yea it is!

Out of that 50 million Microsoft sent to RockStar they may or may not get that back, but RockStar will get money for each game sale no matter what the outcome.

[AaronSOLDIER]

lol omg, PWNAGE at its best lmao

[arfi-gorgona-O]

Perhaps MS feels that it's cheaper to pay for exclusives than to pay 10 different first party studios. Does that make it wrong because it's different? No.

My guess is that this is their business model going forward. They had the chance to get some great first party devs under their wing and chose not to. Different isnt always wrong.

Well guys maybe he was in a hurry and might missed that.See what i did there.Anyway MS has their ways that i don't approve at all,but its their way they are operating.

[Kopkiwi]

What?

I second that.

Nothing like complete contradiction of yourself in the same post is there.

[woodsy85]

What?

I think he meant to put ISN'T there instead.
On topic, Microsoft had the option to buy studios yes, but what people are forgetting here is that SONY have spent millions, if not billions, on the studios they have now. They have put in about 15 years to get to where they are now.
Microsoft need time to build their first party development team, and as far as i can see they are going for the cheaper and easier route.
I personally hope this strategy fails for them, has i dislike Microsoft and what they stand for, but then again a little competition is always god for us consumers.

[mickice]

Microsoft need time to build their first party development team, and as far as i can see they are going for the cheaper and easier route.
I personally hope this strategy fails for them, has i dislike Microsoft and what they stand for, but then again a little competition is always god for us consumers.

It seems like from day 1 Microsoft has chosen every cheaper and easier option in the book. While SONY seems to be almost treating their customers like kings giving out Blu-Ray, HDD's, SA-CD playback.

It's alot easier to step down from a high horse then get on one.

[R3D D3V!L]

Microsoft are doing what they know best, cutting corners.

[Dennis Dyack]

What?

Oops, my bad.. I corrected it.

[Dennis Dyack]

Out of that 50 million Microsoft sent to RockStar they may or may not get that back, but RockStar will get money for each game sale no matter what the outcome.

Another uninformed soul. It was a LOAN, not a payment. MS gets all $50 million back in either DLC sales or from R*. This has been confirmed time and time again.

[Tyrien]

It's Microsoft's strategy.

While it worked I don't it was the smartest idea on Microsoft's part. It's possibly done one of two things:

1. From the looks of games announced both this way of thinking and the economy has caught up to them. Microsoft has had to cut spending to keep some in the bank in case. They just can't afford to throw around money left and right to satisfy developers anymore. Of course, I could be wrong.

This has also worked in their favor because it's proved to developers the 360 is a profitable platform to develop for. So they don't have to give as much incentive as they did 2 years ago.

2. The second is that this has been a very short term movement that's worked against them in the long run. It's finally caught up to them. Because Microsoft has thrown around money to developers to win them over for exclusive content it's likely created a stigma in the industry that causes developers to expect some kind of extra compensation for developing an exclusive title, or exclusive content for Microsoft.

Again, I'm not on a Microsoft board of directors in their financial division so I don't really know, that's just speculation.

[silentmemory]

Witness yet another example of one company flapping its gums about another.

How's this any different to Sony writing cheques to fund their own 1st party games? MS pay publishers to make games for them, Sony pay employees to make games for them - based on the number of people they're paying, it's probably actually Sony with 'a much more lenient policy to writing cheques'.

[Kopkiwi]

The amount of media/PR rubbish that MS and Sony are spouting in the last few months is getting tiresome.

MS work on bringing some EXCLUSIVES this year that people want and Sony work on getting the PS3 at a price point where the majority can actually afford it. Stop going to the media looking to bad mouth the competition with something that actually achieves nothing for us and yourself.

[Stoffinator]

Its true, but in the end it doesn't matter, 360 is doing what they need to do. Sony doesn't need to so much because they do have a very strong first party, but some times shelling out helps.

[Agriel]

Another uninformed soul. It was a LOAN, not a payment. MS gets all $50 million back in either DLC sales or from R*. This has been confirmed time and time again.

actually the whole 50 million is totally a rumor that never has been confirmed by anyone. Its just supposed inside info, so that puts it as a rumor not fact or confirmed unless stated by rockstar or MS.

[Toaddio]

How's this any different to Sony writing cheques to fund their own 1st party games?

MS pay publishers to make games for them.
Sony pay employees to make games for them.

How is that the same?

[coolguy]

these comapnsy will allways trash talk sony even spends more money on there frist party games

[Lefein]

I would prefer that Sony stay quiet when it comes to MS...

but..

ZING!

[R3D D3V!L]

well sony spend 65 milion dollars on kz2. they will never make that money back.

I hope your're being sarcastic.