Can Microsoft still buy exclusives for Xbox 360?
Microsoft has been known to be a bit heavy handed when it comes to snatching up exclusives. The company reportedly paid $50 million for Xbox 360 exclusive GTA IV DLC, which was recently released on Xbox Live. Also, Microsoft has been known to have deals with other studios in the past for exclusive games as well. However, with the state of the video game industry, it has been more difficult for Microsoft to buy their way to victory.
It is no secret that Microsoft has the weakest internal game studio support in contrast to Nintendo and Sony. However, the company has made an excellent case that it is not necessary to have strong internal game studio support to be successful. Currently, with only a handful of internal studios the company is leading hardware sales over Sony’s PS3.
Sony probably has the largest arsenal when it comes to first party studios with over 21 studios under its care. However, it seems like this hasn’t really helped the company much considering that the PS3 is still in third place. I suppose one could argue that the internal studios have yet to really flex all of their muscles.
Microsoft is sort of the opposite of Sony in that the company heavily relies on third party studios to drive the console. I can say with certainty that exclusivity of games such as Bioshock, Gears of War and Oblivion have played a pivotal role in propelling the Xbox 360 early on before Halo 3 even stepped out of the gates.
I predicted that Microsoft would not be able to secure third party exclusives with costs of video game development in the millions. However, I was recently proven wrong when CAPCOM recently unveiled Lost Planet 2 on Xbox Live. It is still not completely clear if Lost Planet 2 will be an Xbox 360 exclusive, but signs point towards the possibility.
This news was a bit surprising given CAPCOM’s announcement that the company would release all major games multiplatform, going forward. This could mean that a generous check changed hands between the two companies to sway CAPCOM. Lost Planet 2 looks phenomenal and could be a stellar title for the Xbox 360 when it launches. It seems like Microsoft is still fully capable of securing big exclusive titles for the Xbox 360.
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35 Responses to “Can Microsoft still buy exclusives for Xbox 360?”
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March 2nd, 2009
Purchasing exclusives to me, is like sidestepping the survival of the fittest. It would be one thing to invest in a studio with a purchase of part or all of the company, but its another to just through 8 digits at a company to prevent them from sharing with the competition.
It is a tactic that devalues the quality of games, though indirectly, by possibly raising the game above the console, reducing the console to a mere mouthpiece for developers with scalable IPs.
Giving rockstar 50mil for exclusive DLC, can be compared to Enron’s mark-to-market accounting practices. Its worth 50million, because by guaranteeing that every consumer that demands that access, there is a rise in consoles sold, and thus the value of licensing to 3rd party developers who DONT have an 8 figure valued IP.
Smart business, but ethically, pure bullshit. It is this sort of practice that has forced gamers to live with RRoD and old tech. It is my theory that rabid Xbots are actually ornery due to being such dedicated gamers, but railroaded into chosing a sub-par platform.
March 2nd, 2009
new maps guns retractable shield from the looks of the game sounds cool but exclusive on 360:(
March 2nd, 2009
The lost planet port was so poor I hardly believe many ps3 owners would care too much. Capcom really showed that they didn’t put much effort into it. I’d be more willing to believe that MS would try and buy dead rising 2 first.
March 2nd, 2009
We were talking to a Microsoft spokesperson who had this to say about Killzone 2 and Microsoft’s future:
“We congratulate Sony and Guerrilla Games for their efforts with Killzone 2, however this is only the beginning of a new wave. The current technology employed for certain unannounced Xbox 360 exclusives far surpasses what gamers have seen in any game so far. Gears of War was the beginning of this technological benchmark when released on the 360 and this lineage will be carried forward in the following months with exclusives that shall stand for a new definition of gaming experience and provide stiff competition for the opposition.”
gameguru.in/microsoft-xbox-360/2009/02/future-xbox-360-exclusives-will-surpass-killzone-2-microsoft/
March 2nd, 2009
well if must be something haven’t heard of. Everything so far coming out this year for the 360 has me undewhelmed if anything.
March 2nd, 2009
“with exclusives that shall stand for a new definition of gaming experience and provide stiff competition for the opposition”
Sounds like nothing but good news to me! Can’t wait. Competition is nothing but good for us eager gamers, unless it is format wars. Which this actaully kind of is, but you know what I mean.
GeOW is the only thing tugging on my sleeve at the minute, if a few more goodies start coming out I’ll make a bit of room on my shelf for a 360.
March 2nd, 2009
This is simple business/economics that I have been saying all the time. Sony ran up the cost of operations by being over ambitious/greedy and made the PS3 price soar way above the territiory where a console should not be priced. Second, it all about overhead. Sony own over 21 studios which are producing exactly what? If it takes Millions to develope a game now then just imagine how much more it will cost Sony for all 21 studios to develope games for the PS3. Add that cost to the over price PS3 production cost and you have got too much operating cost under one roof. MS has I believe 3-4 Studios and does a great source of outsorcing to acuire new IP’s. All they do is write a check for the service. It always cost more to when everything is under 1 roof.
March 2nd, 2009
ms has good innovation skills lol even to rip ppl off
March 2nd, 2009
As for Lost Planet I really hope MS secures the exclusive because that game is worth it. No one really talks about that game anymore but I know that they all know that Lost Planet was a solid game that will sell well on it’s second time around. It had a few bugs but it was so dame good. It’s a game I would buy on launch day no questions asked. I also bet the multiplayer this time will stick around in the top 10.
March 2nd, 2009
Lock_down
That is an intresting post you put u there. MS said that ha. Well there is so much to play already and there is more and better coming!! I can’t wait to see what the future holds.
March 2nd, 2009
And for my last comment, I’m shocked that DWH isn’t here already.
March 2nd, 2009
the author gives ONE example while ignoring the fact sony paid Rockstar to keep them from even admitting the 360 was in the works for a very long time. money talks…
“Also, Microsoft has been known to have deals with other studios in the past for exclusive games as well”..
name them, author…. thanks.
March 2nd, 2009
id like to see what ms can do as far as visuals go…cause im sure gameplay isnt a concern for most but far surpass killzone will be interesting to see. killzone didnt even use all the ps3’s power so u could see that anything 360 can do ps3 can do it better…;)
March 2nd, 2009
kev
prove that Sony was keeping Rockstar quiet about a potential 360 release of GTA4. MS revealed in May of 2006 that GTA4 would be on the 360. The game didn’t come out until April of 2008. Why would Sony pay money for that?
To answer your question to the author….
Square Enix for Last Remnant and Star Ocean 4.
Namco for Ace Combat 6, Eternal Sonata, and Katamari.
March 2nd, 2009
Quick question, guys. How do I add a website link to my name now?
-Arvis
March 2nd, 2009
Hmmm… I might have figured it out, actually…
-Arvis
March 2nd, 2009
what is this pandorra thing arvis??
also Ive decided to completely ignore these kinda posts… I dont get anything out of it… its the same old arguments… Microsoft can do whatever they want… sony can do whatever they want… I just feel like pretending to care anymore…
March 2nd, 2009
DWH,
It’s music. Listening to it is similar to injecting pure Arvis-brand Awesome into your veins with a syringe.
Also, I don’t read all of the actual articles on this site anymore, I just go to the comments and see what people are talking about. Of course, if the headline grabs me, I’ll still read the article first.
-Arvis
March 2nd, 2009
hahahaahahha
wow I never realized had a funny asshole inside you…
*facepalm* that came out wrong…
March 2nd, 2009
It’s a form of out-sourcing.
Big deal, it’s the way much of industry works (and is the way more and more will work in future as they contract out & slim down to cut costs).
March 3rd, 2009
I tend to agree with Happyhockum. Paying a third party to create a game for your system, rather than creating a studio, paying staff, outlaying all other sorts of expenses seems like a more cost effective option.
This is in a similar vein as to how most telcos are outsourcing to India. They pay a fraction of the price for wages etc.
March 3rd, 2009
It’s all relative. If you own the studio you get all the profits.
March 3rd, 2009
phranc – i can’t get to the sites due to firewalls at work by type in ‘GTA4 ps3 exclusive’ in google. you’ll find many pages of it….
March 3rd, 2009
oh..I see. You’re talking about the ps2 titles. They were also only timed exclusives (360 is king of that this gen) and the Xbox ended up getting all three for the low price of $40.
March 3rd, 2009
Actually, the rumours seem to be that GTA V will be PS3 exclusive because of DVD9 constraints.
March 4th, 2009
lock_down, do you seriously think that Rockstar are going to be deliberately cutting their revenue by around 60%? Because if they made it PS3 exclusive, that’s exactly what they would be doing. Come on man, use your head!
March 4th, 2009
Probably not harry. That’s the argument that can be used for potential exclusives going to the 360 instead of both. Why would the company want to lose so much money.
March 4th, 2009
He bites, he bites!
March 4th, 2009
phranc – no, genius..if you would have done the search you would have found what i did..
but, alas, your lack of integrity continues…
http://www.product-reviews.net/2009/03/02/gta-iv-the-lost-and-damned-breaks-xbox-360-live-record/
pretty cool how much money the 360 is creating for their developers while the ps3 bleeds theirs dry….
March 4th, 2009
harry sachz:
You don’t know crap about business if they made it exclusive to the PlayStation brand you think they not gonna charge Sony a pile of millions wow.
%60 YEAH SURE IN YOUR LITTLE xBOX WORLD.
March 4th, 2009
Phranctoast, that’s true, because Microsoft basically buys the exclusivity, so any losses incurred by not being multi platform is more than made up for by this money payed for the exclusivity.
Ivan, yes, 60%. It wouldn’t be 50% because, wait for it, there are more 360s out there than there are PS3s. Once you get your head around that I am sure you’ll be able to agree with that figure.
And Ivan, if Rockstar made the game exclusively for the PS3 brand on their own accord, i.e. not being paid for the exclusive game (because Sony stated that they don’t pay for exclusive stuff *cough* Mirror’s Edge *cough*), what right do they have to charge Sony ‘a pile of millions’?
Tell you what, how about you concentrate on that handlebar moustache and let the big kids talk, ok?
March 4th, 2009
im interested to know where you got the info on ps3 bleeding their devs dry… is the ps3 our of control? is it on a rampage? is it like dexter but japanese??
OHH look who Im asking facts from… laawl… nvm… go on kev…
March 5th, 2009
It’s hard to discredit that harry, as who knows what happens behind some of those closed doors.
I think we’ll see MS buying timed exclusivity more times than full exclusivity (Like Bioshock). Companies had a good excuse when the PS3 didn’t have 20+million systems sold under its belt. Now they only stand to lose a ton of revenue by not going multi console.
March 5th, 2009
@kev.
nice try sport.
Are you telling me that if Lost and the Damned was released as multiconsole DLC it would be making less than it is on just the 360?
Thats what I’m talking about slick. If you can’t keep up with the conversation, please don’t bother to contribute…….
March 6th, 2009
“how about you concentrate on that handlebar moustache”
You have NO idea how much joy that ‘tache provides to the world. How dare you!