Microsoft's Desperate Act!

[Solid Lifters]

by computerand videogames.com

"This morning we were simultaneously shocked and impressed to learn that the house that Gates built has been courting next-gen capable developers and publishers to exclusively create content for Xbox 360, by massively knocking down the cost of the company's per-disk publishing royalty, with one anonymous senior publishing source stating "for a select few there is no per disk royalty". Stunning if true.

If our sources our indeed correct (and these particular ones usually are), this could mean that the financially fortunate company will again operate (for an unknown time) at a financial loss, with the assumed reward being an increased market share through exclusive hosting of as much of the top Next Gen content around as possible. This would also prove to be a double-edged sword, as it would likely limit Japanese rival Sony's options for its upcoming PS3 console.

Now it looks like the Redmond Giant is to use a similar strategy, though this time directly aimed at content providers and publishers, through offering a highly tempting reduced per-disk cost deal. Format holders are said to make rather healthy amounts of cash from charging publishers a royalty fee per printed disk - just shy of a tenner per disk last we checked - meaning that even if the game doesn't sell when on a store shelf, the format holder still makes money.

If Microsoft is indeed cutting this figure down and in one apparent case we heard, waiving it completely, then the publisher's risk is reduced massively (that could mean more interesting and original games getting signed kids). In light of current fears that Next Gen games will cost in the double millions, this becomes a very attractive proposition indeed for publishers, and one Sony may have to match (that is if it isn't matching it already) in order to attract future blockbusters."

Wow. That's one serious desperape act! Too bad it wont work. These desperate tactics usually don't pay off. But, it will lead a few developers from Sony's PS3 to work for the XBox360. But, only the little guys, who don't really make any good games, anyway.

 

[Driftster]

that's not desperation...
THat's smart....

MS has plenty of $ to spare..
taking a cut on the console market isn't going to hurt them..


I think they're just trying to piss Sony off...

And what do you mean "only the little guys"..

Do you REALLY think the Ps3 can survive off of Metal Gear and Tekken alone?

 

[Omnis]

Wow. That's pretty strange. I think Sony will give us a box of chocolates with each ps3. That should do it, yeah.

 

[Solid Lifters]

that's not desperation...
THat's smart....

MS has plenty of $ to spare..
taking a cut on the console market isn't going to hurt them..


I think they're just trying to piss Sony off...

And that's all what they're trying to do, which is stupid, childish and a waste of money, because it's not going to work.

And what do you mean "only the little guys"..

Any company not listed below.


3D Realms
989 Studios

A
Acclaim
Accolade
Activision
AdventureSoft
Atari

B
BioWare


C
Capcom
Castaway Entertainment
Cinemaware
Circle Studio
Core Design


E
Eidos Interactive
Electronic Arts

K
Konami

L
Llamasoft
LucasArts


M
Midway Games


N
Namco
Nintendo

P
Polyphony Digital
Psygnosis
Pyro Studios

R
Rage Games Limited
Rareware
Retro Studios
Revolution Software
Rockstar North

S
Saber Interactive
SCEA
SCEE
SEGA
Silicon Knights
Sony Computer Entertainment
Spiderweb Software
Square Enix

T
Take Two Interactive
Techland
Tecmo
Tesla Studios


U
Ubisoft

 

[Driftster]

You're telling me NONE of those companies would be swayed by more money?
pleeeaazzzeee....

 

[Solid Lifters]

You're telling me NONE of those companies would be swayed by more money?
pleeeaazzzeee....

Sure, but not all will get a discount or the entire royalties waved. MS can't afford that, no matter how many billions the little twerp has.

 

[Driftster]

You're right..
but do you know what Sony is charging?

They could be undercutting sony's prices..

which means more $$ to the groups..

which means all third party groups....(which means you should have excluded PD..because it's a first part dev)...Would be greatly interested...

and that would mean more competition among game companies under the X box..which would push first party developers to make better games

 

[Omnis]

Plus, I'd bet there's a clause in there somewhere where you need xbox exclusivity or else it's no deal.

Solid is right, though. Microscro is blowing smoke and would go bankrupt for cutting the blockbusters' royalty charges.

 

[Driftster]

mmhmm..Oh well..Aslong as I get...Armored core, Chrome Hounds, Gears of War and Halo 3 i'm more than happy!

 

[BlackZ28]

Desperate?
If I was Sony or MS, I would do it too.

 

[Solid Lifters]

Plus, I'd bet there's a clause in there somewhere where you need xbox exclusivity or else it's no deal.

Solid is right, though. Microscro is blowing smoke and would go bankrupt for cutting the blockbusters' royalty charges.

Yep. If the stock holders of his company ever heard of this crap, I'm sure they'll decide to pull out. I know I would. I pulled out in 1997 after he started screwing things up by acting too much like a bully, and started buying things up. Look what happened to him, and the stock prices, right after 1997.

I bet the limitiations are so severe on this deal, that nobody would qualify for them.

 

[Driftster]

Now...Why wasn't this in the X box/360 section again?

Oh that's right...baiting...I forgot about that

 

[Solid Lifters]

Now...Why wasn't this in the X box/360 section again?

Oh that's right...baiting...I forgot about that

It was put here because this new practice of MS effects Sony. It wont work as they hope it will, but it still effects Sony. It's on par with the rest of the topics here, which is anything Sony PS3 related.

If you want it in the XBox360 forum, then go put there; I don't give a crap...

 

[BlackZ28]

Now...Why wasn't this in the X box/360 section again?

Oh that's right...baiting...I forgot about that

Word.

 

[Omnis]

It was put here because this new practice of MS effects Sony. It wont work as they hope it will, but it still effects Sony. It's on par with the rest of the topics here, which is anything Sony PS3 related.

If you want it in the XBox360 forum, then go put there; I don't give a crap...

Word.

 

[Solid Fro]

All of this won't matter if the developers don't want to develop for the Xbox360. Why develop for a platform no one has? This will be the scenario with Microsoft's launch line up for Japan.

 

[Omnis]

Hahaha, seriously.

Microsoft has like zero game overseas.

 

[amar212]

If true - "desperate" is a good word.

No Biggies will accept the offer to provide just X360 exclusive content, no matter of benefits - and financial one are just top of the iceberg.

Little math should solve: if the fee is like 1/10 of game-price in retail, it is 5$. If you sell 1M games, it's 5,000,000$. Big money, yes?

No.

If you develop for PS/Sony, you have an opportunity to sell your games to enourmousely bigger consumer base. I don't want to go there now, but market-share of previous two PS genrations speaks for itself. And I just can't buy those "analysts" bull about Sony to have around 50% of share with next-gen. I see it more like 75% and I would bet some serious money on it.

If Sony is charging the same percentage for games, and you have bigger consumer-base, you're going to make more money that way.

If you're big and important developer, of course.

Smaller ones could accept that offer, but when they make more money, they'll turn to Sony because PlayStation platform is where the money is. Period for another decade, if not even longer.

 

[Sprite]

Amar is correct, taking Microsoft's roumoured deal would be like cutting off their nose to spite thier face. Most companies will say no to this deal if true, for the reasons stated above.

would you take an extra $30 for the extra $80 by selling your games on either the better console or even both.

 

[Dave A]

A very big company won't go exclusive to a single machine because it will lose out in game sales overall. A smart company willstay open to any console and sell games for asmany of them as it can. However this is certainly not an act of desperation and it isn't a tactic limited to Microsoft, the very same Sony has made exclusive deals with developer befre, they even made a deal with Rockstar before they were as big as they are now to make GTA games PS exclusive for a year before they could appear on another consoel. Was that too desperation. Theres been a few companies that hae been signed over to make games exclusively for the PS3, so what.

As for it only being the little guys, mostly it is. But often it's these little guys than innovate and create new ideas rather than the mainstream productions of big corporations. PD anyone, they were tiny and they created the wonder that is GT. Now they're huge, but after 4 installments, the GT series lacks new, innovative ideas. Still a great game, but it hasnn't pushed any boundaries that are non-graphical.

 

[Kent]

Interesting...
I wouldn't say this is too deperate, but I do think it is something of a cry for help.

Fact is,
Even if MS pulls out all the stops and really manages to make a big hit with the 360, it will still be over-shadowed by the PS3.

The reason I say that is because of the Japanese market and the overall quality of the ps3.

PS3 is the jump that Sony wanted to make- just like PS1 -> PS2.

Xbox360, with every show (including the most recent Tokyo Game Show) is looking less and less impressive.
Xbox 1.5 it really does seem to be... And frankly, anyone running their PC on windows should know good and well that MS is great about releasing new products on a regular basis (regardless of how much life is left in the previous product or how un-finished the new product is).

Right now we are all just speculating with regards to the effects of MS on the market.

However, my bet is that MS's only chance this time around is through good games.
Performance of the machine will not be the issue... Good games will be the issue.

Just look at launch titles. 👍
MS needs to pull it together and remember that getting the jump on your competition isn't a matter of where you jump from, it's a matter of how far you can make your first jump.

Xbox360 looks like a small jump from a little further up than sony (being that they are releasing earlier).
However, PS3 looks like a huge jump and more than likely, that jump will leap-frog the Xbox360.

Of course, this is all just speculation on my behalf.

I look forward to seeing what happens in the next year or so.
Until then I will be waiting very patiently.

Thing is, I just hope there aren't too many people who jump on buying a 360 only to end up with buyers remorse as they watch more and more new PS3 games come out.

Oh, and that reminds me...
MS's new trick mentioned in the subject of this thread, if nothing else, looks like a plea for Japanese plublishers to sign-on with MS.

Fact is, they need all the Japanese content they can get and at the moment it looks like they are getting more from the States, the canadians, and the Euros than they will from any of the Japanese.

Just my 2 cents.

Btw, I have a feeling the ps2 & xbox roles will be reversed for the 360 & ps3.
Say hello to better looking games for sony.

 

[Boost Lee]

It's a free market.

Sony stepped on SEGA/Nintendo in the mid-late 90's. Now, Microsoft is going to try and step on Sony. Then again this is all hearsay. I do know that I'll be enjoying my 360, while all the Playstation whores here talk about how great the PS 3 will be; when it's released 1 year later.

haha.

 

[Dave A]

Btw, I have a feeling the ps2 & xbox roles will be reversed for the 360 & ps3.
Say hello to better looking games for sony.

Definitely, but then this time the PS is the one being developed for a later launch. Also the PS3 will cost more, it is nice to know that you are getting better technology,even if it all isn't for games.

 

[Kent]

It's a free market.

Sony stepped on SEGA/Nintendo in the mid-late 90's. Now, Microsoft is going to try and step on Sony. Then again this is all hearsay. I do know that I'll be enjoying my 360, while all the Playstation whores here talk about how great the PS 3 will be; when it's released 1 year later.

haha.

I think this post represents everything I've believed about the xbox crowd since the get-go.

No PS3 whore here.
Just a GT4 junky that still plays "Castlevainya: Symphony Of The Night" to this day.

I'm not in on the fanboy-ism.

To me this all comes down to what the final products are.
If Xbox360 can pull it together with future titles and bring the highest level of gaming to the world, then good for them because that will get me to buy an Xbox.

However, if the MS work for 2006 is still only as good as the launch offerings... ... PS3 it will be for me.
Doesn't matter which one I have as long as it is the better of the two.
Right now though I am going to wait and see what PS3 has to offer.

Just one thing to think about...
I bought a PS2 the summer before I signed up here at the GTP.
Don't know the year it was but I can tell you for sure that the ps2 had been out for quite some time at that point.

Waiting for a console only bothers me when the one I am playing has no life left... The PS2 still has life in it.
Then again, my biggest problem with the 360 is that there is still life left in the Xbox.

Oh well... Maybe the early launch of the xbox360 will result in a longer life for it than the first box?
Can't say for sure but my guess is no. Hell, box-boys might be playing the xbox720/xbox2.0 when I'm still getting the life out of a PS3?
Then again, maybe I will be playing a 360 when Sony doesn't match the standards they have set for the PS3?

I doubt that though... Tokyo Game Show really set the nail that will eventually penetrate the coffin.
PS3 just looks too damn good.

 

[slackbladder]

Will this help developers recoup the cost of developing next gen games for the 360? I was surprised to find that the Xbox is the most expensive platform to develop on link and I wondered if the 360 would be too, contrary to many peoples belief that the PS3 would be the most expensive.
It does seem MS are trying any trick to get an edge. I just wonder what Sony will do in return. And what about Nintendo? Are they going to be left with no third party support?

 

[Draugen]

Anticipation for the PS3 is exceptionally high amongst consumers, particularly in Sony's native Japan. A recent survey which questioned 500 male and 500 female console owners in Japan found that an overwhelming 72.3 percent said they would be buying the PS3.

Microsoft, who has struggled to secure a foothold in the Japanese market with the Xbox, is keen to do things differently in Japan with the Xbox 360 this time around. According to the survey however, only 5.8 percent said they were interested in the new Xbox console, compared to 29.1 percent who showed interest in buying the new Nintendo Revolution.

taken from a site.....

Xbox will continue its struggle in the japanese market with the 360 no dubt about that.

Nintendo is still big in japan.

Sony playstation is big around the whole world and will stay big as the years go...

Many ppl would buy the 360 just to get a little taste of next gen games,im thinking about it to..but when PS3 hits the market I would buy it ,my friends will and a lot of u....

PGR3 to xbox 360 looks great! the latest incar trailer was just awsome.
On the other hand Need for speed dont look that great...it just looks like another xbox game....how great is the 360? i dunno,but what i do know is that GT5 on PS3 will be
better than GT4 on PS2...much better!!!!

 

[Boost Lee]

I think this post represents everything I've believed about the xbox crowd since the get-go.

No PS3 whore here.
Just a GT4 junky that still plays "Castlevainya: Symphony Of The Night" to this day.

I'm not in on the fanboy-ism.

To me this all comes down to what the final products are.
If Xbox360 can pull it together with future titles and bring the highest level of gaming to the world, then good for them because that will get me to buy an Xbox.

However, if the MS work for 2006 is still only as good as the launch offerings... ... PS3 it will be for me.
Doesn't matter which one I have as long as it is the better of the two.
Right now though I am going to wait and see what PS3 has to offer.

Just one thing to think about...
I bought a PS2 the summer before I signed up here at the GTP.
Don't know the year it was but I can tell you for sure that the ps2 had been out for quite some time at that point.

Waiting for a console only bothers me when the one I am playing has no life left... The PS2 still has life in it.
Then again, my biggest problem with the 360 is that there is still life left in the Xbox.

Oh well... Maybe the early launch of the xbox360 will result in a longer life for it than the first box?
Can't say for sure but my guess is no. Hell, box-boys might be playing the xbox720/xbox2.0 when I'm still getting the life out of a PS3?
Then again, maybe I will be playing a 360 when Sony doesn't match the standards they have set for the PS3?

I doubt that though... Tokyo Game Show really set the nail that will eventually penetrate the coffin.
PS3 just looks too damn good.

1. Nothing I have ever posted on this forum, or any forum, would put me in a "crowd". I own both systems.

2. You play Castlevania to this day, is that right? I guess you don't have to know how to spell the name of the game to play it..

3. You are definitely in on the "fanboy-ism." You just don't realize it.

4. "IF XBOX 360 CAN PULL IT TOGETHER WITH FUTURE TITLES" The system hasn't even been released and you are already talking ****.

5. There is still life in my Playstation 1. Does that mean I'm wasting my time with the Playstation 2, or the Playstation 3? Who are you to say when a system has or has not lost it's appeal?


You should get yourself a bling bling gold chain. Just make sure the medallion hanging from it says - SONY OWNS ME.

 

[Dave A]

Mate you've got a lot to learn about this site and about Kent, half of what you posted was absolute crap. Kent hasn't said anything bad about the XB360, the idea of waiting for a consoles life to be fully up is a personal one.

As for him deciding theres still life in the XB and PS2, he never said he decided it, he said there WAS still life in them, and you know what, there IS still life in them, developers are still making a lot of games for them, theres not been any decrease in product numbers. When the number of new gamesdrops then the consoles life is ending, when there are no new games made, it's dead.

As far as appeal goes, he never once said it wasn't down to your own preference if you thought there was still appeal in your PS1 or XB, appeal is a personal thing and Kent never said otherwise. Kent is a respectable member here, you on the other hand nead a few lessons about how to be one of thoes.

 

[Solid Lifters]

1. Nothing I have ever posted on this forum, or any forum, would put me in a "crowd". I own both systems.

2. You play Castlevania to this day, is that right? I guess you don't have to know how to spell the name of the game to play it..

3. You are definitely in on the "fanboy-ism." You just don't realize it.

4. "IF XBOX 360 CAN PULL IT TOGETHER WITH FUTURE TITLES" The system hasn't even been released and you are already talking ****.

5. There is still life in my Playstation 1. Does that mean I'm wasting my time with the Playstation 2, or the Playstation 3? Who are you to say when a system has or has not lost it's appeal?


You should get yourself a bling bling gold chain. Just make sure the medallion hanging from it says - SONY OWNS ME.

You is sooooo smart.

I doubt you even read what Kent posted. Go back and read it once more.

 

[T5-R]

I wouldn't say desperate, I would say more like Microsoft going for what it sees is the best way of attempting to take over the console market. Which is undoubtably what they are trying to do just like Sony was with the Playstation.

Whenever I think of the PS3 I can't help but think of that arrogant SOB that said how we have to 'earn' our PS3s... A statement like that deserves a bat to the head!