The guys over at Epileptic Gaming had a conversation/yelling about Microsoft's decision to pay Take2 Interactive $50,000,000 (that is 50 million) to secure two exclusive downloadable content packages to be released over the year following the release of GTA: IV. I called in and we had a discussion of sorts but ran out of time. I just wanted to write down some of my thoughts on the topic here. I am going to try to keep it short.

The discussion stems from asking why Microsoft would ever spend $50 million on just downloadable content that is to be released after the game comes out; the game itself doesn't even cost $50 million to make. I think that looking at this from an instant gratification viewpoint is the wrong way. Microsoft never thinks short term, they are always thinking long term.

Here is the ideal situation:
We have these 14 million people that bought GTA: SA and are going to the store to buy GTA: IV. A small portion of these people own both the 360 and PS3. They are going to choose the 360 version because they will be able to get the exclusive DLC in the future. There are the people that own just the PS3, they will most likely just buy the PS3 version but there just might be a few people that will buy a 360 and a 360 version of the game for the DLC. Then we have the people that just own the 360, they are pretty much guaranteed to just buy the 360 version of the game.

Now we have all these people that don't own either the 360 or the PS3 that want to buy one or the other along with a copy of GTA: IV. I assume that most of the 14 million people that bought San Andreas haven't purchased either of these systems as the 360 has sold about 11,000,000 units and the PS3 at about 3,300,000 (rough estimates here). Any way you look at it, most of the people that bought San Andreas on the PS2 don't own a next gen console yet and are planning on buying one.

They are going to look at both options: get a PS3 for $600 (presumably), or get a 360 for either $300 or $400. By looking at price alone, most consumers will pick the cheaper option. Additionally not only will the consumer spend less from the start, they will have the ability to obtain exclusive content down the road.

Now, don't get me wrong, this is just the ideal situation here. I am not saying that this will happen but, it is what Microsoft wants to see happen. And they are willing to spend $50 million in hopes that this plan works out. They want to further the 360's lead that it has in front of the PS3. Maybe if the 360 version of the game sells enough more units over the PS3 version Take2 Interactive will consider making future GTA titles completely 360 exclusive from the start. That is what Microsoft want to see happen, and that is why they are willing to spend $50 million.