Take-Two Pays $25 Million for "Key Rockstar Personnel"

[fitbabits]

Thanks to Next Generation (http://www.next-gen.biz) for the news (http://www.next-gen.biz/index.php?option=com_content&task=view&id=2478&Itemid=2).

Take-Two has signed a three-year $25 million employment agreement with "key Rockstar personnel" in an effort to safeguard the creative engine behind its most valuable franchise, Grand Theft Auto.

The agreement, outlined in a 10-Q filing yesterday, is for a three-year term, and provides for the payment of $25 million in restricted stock, plus unspecified internal royalties.

The 10-Q explores the value of Rockstar's creative heads, and the risk to the company of any failure to offer a decent package to GTA's bosses. It states, "We rely on our management and other key personnel for the successful operation of our business. In particular, we are highly dependent on the expertise, skills and knowledge of certain of our Rockstar employees responsible for content creation and development of Grand Theft Auto and other titles."
Talk about putting your all your eggs in one basket...

[drakkarim]

content? what fucking content? mtv videos have more content then the rockstar shit.

[jacktion]

This is good. This is the industry starting to pay more realistically. When you look at how much money the GTA franchise makes, it is in line with a Spielberg movie. It is only logical that the minds behind it get paid in a similar fashion. People can say that this is too much pay but if you have the skills to make hundreds of millions of dollars for a corporation, it is only fitting that the corporation at least pay you a small percentage of that back.

[Qoz]

True.
But in the film industry a big shot name draw many people to pay even though the film is crap. If "war of the worlds" had been without Cruise and Spielberg on the poster the movie would have made alot less. Thats why big stars get big dollars.

With games the average consumer is not assured quality by looking at who made it (the exception is perhaps Blizzard. EA is trying really hard, but it's far from what you see in the movie business). People buy mostly game-sequels and by hearing friends recommend games.

The game industry had a "dot com" kinda effect regarding rockstar-developers a few years ago. Many dollars were invested in big shot developers at Ion Storm. 3D Realms, ID and Ion Storm were kings. Some of these huge investments resulted in few good games, and they never made the money they should have. Daikatana made the bubble burst and 3D realms went into "when its done" mode. Investors got scared.

Perhaps we are witnessing the beginning of new era - the return of the "Rockstar Gamedesigners!"

[vivafletcher]

If you're going to put your eggs in one basket, the GTA series is a pretty good basket to use.

[FormerR*]

lol, talk about a great way to piss everyone off at other studios. People are leaving faster then they can hire all over, I guess they panicked with the GTA guys

[Hellstorm]

lol, talk about a great way to piss everyone off at other studios. People are leaving faster then they can hire all over, I guess they panicked with the GTA guys

Well there is the whole problem of Take2/R* being able to keep operating in the near future.

[KNOTE]

I consider it more "hitching yourself to the fastest horse". Take 2 has not shipped a hit game *other* than GTA. If you have the inevitable brain-drain that ever successful studio goes through, it could be disastrous for the company. I personally feel this is a good precedent for the industry. People are beginning to realize that it's the talent of developers that matters, not the platform, not the lisence.

[eatme]

Uh, their eggs are and always have been in one basket. Take 2 can't execute anything else for shit, because they pour everything they've got into GTA. This has been their pattern for years, and they're not going to change it now-- the same incompetent people are still in charge.

[S1n1star]

Not a fan of R*'s fomulaically contrived "edgyness", but it is nice to see a publisher actually DO something to retain the development talent they have for once.

[jeffool]

Y'know, with actions like these, I just may stay a fan of Rockstar...

[ElectricMonk]

considering how much money rockstar has made take 2 they are worth the money

some quick research:
http://biz.gamedaily.com/industry/toppers/?id=8271

gta:sa may make more than the movie titanic. the entire series probably made take 2 3 billion dollars.

[SuperMonkeyFighter2]

Uh, their eggs are and always have been in one basket. Take 2 can't execute anything else for shit, because they pour everything they've got into GTA. This has been their pattern for years, and they're not going to change it now-- the same incompetent people are still in charge.

That is completely not true. Midnight Club 3 has sold over 3 million copies worldwide, Manhunt over 2 million, Red Dead Revolver over 2 million ... every Rockstar branded product has made money ... even that awful State of Emergency.