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[ORANGUTAN]

I've been wondering lately why MS didn't just outright buy several of the biggest exclusives (FF13, RE5, etc)?

Think about it... MS has tens of billions in the bank, Bill Gates gets a billion everytime MSFT goes up a point, they are in a significantly better financial situation than Sony, who are basically relying on Blu-Ray becoming standard to keep the company afloat.

Let's say (and I'm just speculating...could way off + or -)

GTA $500 mil
FF13 cost $300 mil
RE5 $200 mil

$1 billion dollars and they'd have won the console wars before they even started. Just FF13 and RE5 would've done it too for $500 million. It would save (and earn) them billions in the future because their competition would be dead in the water. It would pave the way for Xbox 720 to completely dominate the next round.

So why didn't they? Can anyone in the know give some insight on how these moneyhat exclusivity deals work? The financial side of things mostly

 

[mikeGFG]

The gaming division is in enough debt.

 

[ORANGUTAN]

The gaming division is in enough debt.

But my point is, that's just the gaming division. The overall company is one of the most profitable in the world. Wouldn't it be pretty obvious to them if they secured a few of these exclusives that in the end it would mean billions more in profits? Confusing

 

[klee123]

If moneyhats always worked, they would have bought Nintendo this gen and Sony would be have ****ed over.

I'm not 100% sure on how everything works, but I doubt money is only solution to everything.

 

[disco]

Would Rockstar, Square and Capcom actually want to sell them though? To them there is more potential in the longterm to earn more money keeping the franchises on a Playstation system. If the consumer was suddenly forced in a way to buy an Xbox 360 i think the market would probably vastly shrink. I mean, imagine Japan...

Edit - Plus its not very legal is it?

 

[ORANGUTAN]

Would Rockstar, Square and Capcom actually want to sell them though? To them there is more potential in the longterm to earn more money keeping the franchises on a Playstation system. If the consumer was suddenly forced in a way to buy an Xbox 360 i think the market would probably vastly shrink. I mean, imagine Japan...

Edit - Plus its not very legal is it?

That's why you overpay them... like buying RARE type of overpay, huge.

I have no idea about the legality, anyone know?

And re: Japan... wherever FF13 and DQ9 are is where the Japanese will go. They won't care. Look at Blue Dragon... people thought the main reason 360 bombed in Japan was because it's American, yet when MS is finally about to release a game that appeals to their market, 360 sales have increased exponentially. Ipods are crazy popular in Japan and they're American... that has little to do with it.

 

[CosmicGroinPull]

GTA $500 mil
FF13 cost $300 mil
RE5 $200 mil

If you're gonna spend all that money, why not just give away a shitload of 360s. $1 billion = ~ 3mil+ new 360 owners and lots of MS love.

 

[Topfuel]

For that sort of money you could make heaps of new franchises.

 

[DarienA]

That's why you overpay them... like buying RARE type of overpay, huge.

I have no idea about the legality, anyone know?

If you perform a hostile acquisition of a company you can bet you're going to lose some of the key talented staff that you wanted in the first place.

 

[ElectricBlue187]

it takes more than money, the sellers have to be willing to sell

 

[ElyrionX]

I've been wondering lately why MS didn't just outright buy several of the biggest exclusives (FF13, RE5, etc)?

Think about it... MS has tens of billions in the bank, Bill Gates gets a billion everytime MSFT goes up a point, they are in a significantly better financial situation than Sony, who are basically relying on Blu-Ray becoming standard to keep the company afloat.

Let's say (and I'm just speculating...could way off + or -)

GTA $500 mil
FF13 cost $300 mil
RE5 $200 mil

$1 billion dollars and they'd have won the console wars before they even started. Just FF13 and RE5 would've done it too for $500 million. It would save (and earn) them billions in the future because their competition would be dead in the water. It would pave the way for Xbox 720 to completely dominate the next round.

So why didn't they? Can anyone in the know give some insight on how these moneyhat exclusivity deals work? The financial side of things mostly

It's not that simple because acquiring exclusives doesn't guarantee them the victory in the console wars. New IPs could always surface and the shareholders would never agree to something like that, especially when the future cash flows from acquiring IPs is so uncertain.

 

[LuCkymoON]

The gaming division is in enough debt.

When was the last time the Home & Entertainment division made a profit? webtv?:lol :lol :lol

 

[F#A#Oo]

Winning the console race is not worth that sort of huge investment...

I don't even think MS likes the direction they've been pulled in...in order to compete with Sony. But if it means stopping Sony from conquering the living-room space then they have to compete on some level...even if it hurts them.

Also the way Japanese merger/buy-outs etc happen...it has to be freindly. Aggresive take-overs are a no no in Japan. Look at the way Nintendo tried to buy Bandai...if Nintendo had gotten aggresive that would be one messy take-over...

Like-wise Sony are constantly knocking on SE's door for a take-over...but SE keep snubbing their advances...

 

[Dizzy]

GTA $500 mil

That's more than they paid for Rare. They probably just don't think it's worth it for one game. Even if they had the mighty GTA as an exclusive, they aren't guarenteed to destroy Sony.

Same for Resident Evil, last gen it was huge for Sony and this gen it was pretty much exclusive to cube...didn't make a dent in PS2 sales at all.

 

[Bearillusion]

I've been wondering lately why MS didn't just outright buy several of the biggest exclusives (FF13, RE5, etc)?

Think about it... MS has tens of billions in the bank, Bill Gates gets a billion everytime MSFT goes up a point, they are in a significantly better financial situation than Sony, who are basically relying on Blu-Ray becoming standard to keep the company afloat.

Just stop.

 

[Maztorre]

Nobody can tell what will be the big system seller from one generation to the next. GTA made a revival out of nowhere to become the game that sold PS2s, likewise this massive leap in interest for Brain Training/Animal Crossing on DS which nobody could have made feasible predictions about.

Microsoft bought Rare and what became of that, really? Rare's form on the N64 hasn't been matched at all in either sales or game quality on either Xbox or 360 so far. Similarly, Nintendo's deals with Resident Evil and Twin Snakes didn't cause a massive sales surge.

Given the recent history of all these deals, I don't think anyone finds it fiscally wise anymore to put significant amounts of cash in a jump to pre-empt an unpredictable market.

 

[Luckyman]

360 sales have increased exponentially

I would wait until the numbers start coming in..

 

[linsivvi]

As if Microsoft have not lost enough money on their console business already. Just because they made a lot of money in their software division does not mean they can just throw money away recklessly in their entertainment division. That is not how you run a business and expect to last.

 

[WrathOfOtaibah]

Microsoft is a public corporation and as a result, must answer to shareholders. Shareholders are going to be a little concerned if Microsoft paid $1 billion (using the OP's numbers) for exclusitivity in three games. The risk isn't worth it. FF and DQ gamers could very well just ignore the iterations on the 360 and then the games only bring in a fraction of the money spent. That is a serious risk that needs to be considered.

Microsoft has a lot of money but it has that money because it didn't get where it was by throwing cash around on pigs in a poke.

 

[fortified_concept]

And who said the companies wanna sell these exclusives? Not to mention that it has become obvious that the MS gaming division doesn't have the financial support it used to have.

 

[Dr. Kitty Muffins]

It has to be freindly first of all. Some companies might go for it but it depends on their situation. I would think you would have a better time convincing a small or medium sized company...............and their IP's may not be huge sellers. Even a large company might agree to a buyout (SEGA changed its mind at the last minute) but there is a whole lot of "if's and's and but's".

Personally I like the idea but I've got a crazy oil tycoon side to me.

Rare made strategic sense at the time because it took away titles from Nintendo and gave them a perceived blow. Of course, Rare has yet to live up to their billing. They need alot better direction at the helm.

Anyways GAF hates buyouts, period - due to their liberal leanings. This thread will not go over well.

 

[gbovo]

1. MS can't "buy" those exclusives if Square, Rockstar and Capcom aren't willing to sell.
2. SE, Capcom and R* don't live off of moneyhats, they also have shareholders to answer to, and moneyhats alone cannot account for their company's bottom line.
3. Excluding GTA, RE and FF(main series) have never seen an iteration on the XBox platform; if the companies that own those IP's decide to move those titles exclusively to a platform where a previous iteration in those series has never been released b4, then there's the risk that fans of the series might not opt to move to that platform and would prefer if the companies just released a version of the game on their preferred platform.

 

[P90]

Anyways GAF hates buyouts, period - due to their liberal leanings. This thread will not go over well.

I have no real problem with buyouts. Business is business as long as it is honest. If it ends up stagnating creativity, then new companies will fill the void. Like weeds growing through the pavement.

 

[jedimike]

You guys are also forgetting that it is against the law to do so. Just like they can't sell games for $10 each or consoles for $50. They have to keep their prices for goods bought or sold within industry standards, otherwise they'll get sued for monopolistic practices.

 

[DDayton]

You guys are also forgetting that it is against the law to do so. Just like they can't sell games for $10 each or consoles for $50. They have to keep their prices for goods bought or sold within industry standards, otherwise they'll get sued for monopolistic practices.

1. I can't see how Microsoft could be construed in any way, shape, or form as having a "monopoly" in the gaming industry.

2. I can't see how paying a company for an exclusive license could be illegal -- it's essentially paying for publishing rights.

3. Actually, I think MS could sell their games for $10 or consoles for $50 -- I don't think you can necessarily equate the Xbox 360, PS3, and Wii as all being in "the same item". The hardware is different enough that I can't see how you can lump them together for illegal pricing. Besides, MS underprices the Xbox for years, and they never suffered from a legal challenge.

 

[Safe Bet]

Microsoft is not a Gaming Company...

I wish that was different.

I remember the first time I played Age of Empires thinking to myself, "Oh shit! Microsoft is making games!" but for some reason it never really seemed to go anywhere.

(insert absolute power causes absolute stagnation psycho-babble here)

 

[deadhorse32]

They should buy Sony LOL

 

[adg1034]

Hit them with your lightsaber lolz lolz.

 

[Defuser]

It's a big waste when you can use that money to pump/fund out more new killer IP like GeoW,LO,BD.etc

 

[zon]

They should buy Sony LOL

Laughing is ghey, be more mature.