Game Reviews Index
In the months leading up to the next release of gaming’s arguably biggest franchise, there has been a fierce amount of contention over which company will reap the biggest rewards. This is the first GTA game that will be releasing simultaneously on two competing platforms, so naturally everyone wants to know, which version will sell the most? While equal arguments can be made for the game doing well on the Xbox 360 or PS3, it’s clear that the people who will benefit the most will not be either console manufacturer, but Take 2 itself.
Certain analysts, such as Michael Patcher, have made their own predictions that the Xbox 360 version will have better sales than the PS3. In his report, Patcher believes that an estimated 6 million copies of GTA IV will be sold in those little green cases. While this could be seen as a decisive victory for Microsoft, let’s be clear that the 360’s install base does have a larger number of consoles. There is no doubt that the game will move both of the two systems off of shelves, but of course the console with the larger install base will get somewhat of an edge.
Microsoft’s argument as for why gamers will pick the Xbox 360 version of the game when purchasing a console to go along with it centers around the fact that they possess exclusive downloadable content for game, which is expected to be released in the fall of this year. While Microsoft is very confident about this advantage, not everyone else in the industry feels the same way. SCEA’s Scott Steinberg recently spoke to GameDaily.com and brushed Microsoft’s boasts away. “Perhaps they’ll be shipping some episodic content in the fall, but there is a whole lot of product shipping on the PS3 in April and I personally don’t think there’s going to be a huge percentage of folks who jump into downloadable content for another price when they’re still playing through the core product."
Steinberg went on to reiterate that the PS3 is not hopelessly relying upon sales for GTA IV’s release, as it will have a 2008 lineup consisting of plenty of other exclusive titles, such as MGS 4 and Grand Turismo 5 Prologue. Analyst Michael Patcher has also expressed skepticism of Microsoft’s plans for downloadable content with GTA IV: “65% of Xbox 360 owners are Xbox Live members, so the company has to sell a download to 50% of its addressable market in order to generate cash from the first download.” Half of the market is definitely a lot of downloadable content to sell; 2 million downloads to be specific. Microsoft may be promising that this extra content will be the deciding factor for people purchasing a new console and the game, but after spending hundreds of dollars on a system, how eager will they be to invest even more? The downloadable content will also not be released until well after the game, so will it really be on consumers’ minds?
Regardless of this feud between Microsoft and Sony, it is apparent to Patcher that the real benefactors of GTA IV will be none other than the publisher themselves. “We think that GTA IV will generate around $450 million of the company’s expected $1,073 million publishing revenue this year, and will generate an operating profit of around 30%, or $135 million. At the high end of company guidance, Take-Two will generate operating income of around $130 million, meaning that the game is responsible for 103% of overall company operating profit." With an industry seeing increasing software sales, Take 2’s have noticeably slumped. In the midst of increasing pressure by Electronic Arts to purchase the company, it’s safe to say that the people depending on GTA IV the most will not be Microsoft or Sony, but Take 2.
Certain analysts, such as Michael Patcher, have made their own predictions that the Xbox 360 version will have better sales than the PS3. In his report, Patcher believes that an estimated 6 million copies of GTA IV will be sold in those little green cases. While this could be seen as a decisive victory for Microsoft, let’s be clear that the 360’s install base does have a larger number of consoles. There is no doubt that the game will move both of the two systems off of shelves, but of course the console with the larger install base will get somewhat of an edge.
Microsoft’s argument as for why gamers will pick the Xbox 360 version of the game when purchasing a console to go along with it centers around the fact that they possess exclusive downloadable content for game, which is expected to be released in the fall of this year. While Microsoft is very confident about this advantage, not everyone else in the industry feels the same way. SCEA’s Scott Steinberg recently spoke to GameDaily.com and brushed Microsoft’s boasts away. “Perhaps they’ll be shipping some episodic content in the fall, but there is a whole lot of product shipping on the PS3 in April and I personally don’t think there’s going to be a huge percentage of folks who jump into downloadable content for another price when they’re still playing through the core product."
Steinberg went on to reiterate that the PS3 is not hopelessly relying upon sales for GTA IV’s release, as it will have a 2008 lineup consisting of plenty of other exclusive titles, such as MGS 4 and Grand Turismo 5 Prologue. Analyst Michael Patcher has also expressed skepticism of Microsoft’s plans for downloadable content with GTA IV: “65% of Xbox 360 owners are Xbox Live members, so the company has to sell a download to 50% of its addressable market in order to generate cash from the first download.” Half of the market is definitely a lot of downloadable content to sell; 2 million downloads to be specific. Microsoft may be promising that this extra content will be the deciding factor for people purchasing a new console and the game, but after spending hundreds of dollars on a system, how eager will they be to invest even more? The downloadable content will also not be released until well after the game, so will it really be on consumers’ minds?
Regardless of this feud between Microsoft and Sony, it is apparent to Patcher that the real benefactors of GTA IV will be none other than the publisher themselves. “We think that GTA IV will generate around $450 million of the company’s expected $1,073 million publishing revenue this year, and will generate an operating profit of around 30%, or $135 million. At the high end of company guidance, Take-Two will generate operating income of around $130 million, meaning that the game is responsible for 103% of overall company operating profit." With an industry seeing increasing software sales, Take 2’s have noticeably slumped. In the midst of increasing pressure by Electronic Arts to purchase the company, it’s safe to say that the people depending on GTA IV the most will not be Microsoft or Sony, but Take 2.
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