Take-Two Interactive to Pay NBA up to $1.1 Billion in Licensing Fees

Discussion in 'HardForum Tech News' started by cageymaru, Jan 18, 2019.

  1. cageymaru

    cageymaru [H]ard|News

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    Take-Two Interactive Software Inc has agreed to pay the NBA licensing fees that could cost $1.1 billion over seven years according to the Wall Street Journal. This is the cost that video game licensing incurs in today's market. The deal will allow 2K Studio, a subsidiary of Take-Two Interactive Inc, to continue to create NBA branded games including smartphone apps. The 20 year old NBA 2K franchise has sold 86 million units worldwide and sales of the most recent iteration of the game, NBA 2K18 reached 10 million units worldwide.

    Game publishers traditionally pay licensing fees to the major sports leagues ranging from 10% to 15% of a game's revenue, analysts say. Take-Two, which also makes the Grand Theft Auto and Red Dead Redemption series, doesn't disclose revenue for individual games. But based on analysts' estimates for the NBA 2K series, it appears the company is paying a licensing fee at the top end of that spectrum or higher.
     
  2. IcePickFreak

    IcePickFreak [H]ard|Gawd

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    Meanwhile I'm busy paying for an NBA teams arena here in Milwaukee thru taxes. Not to mention still paying for an MLB teams stadium, and also paying for a Chinese companies manufacturing plant. I really hope they can all pull thru these tough times. :rolleyes:
     
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  3. BobBobsonJr

    BobBobsonJr n00b

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    They want to renovate the Astrodome in Houston. Tax payers voted no, the county is going to do it anyways.
     
  4. Zarathustra[H]

    Zarathustra[H] Official Forum Curmudgeon

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    Jesus.

    I'm surprised enough people buy these tired sports games that are pretty much the same year after year with some minor arena and player name tweaks to make this kind of licensing cost worth it.
     
  5. Zarathustra[H]

    Zarathustra[H] Official Forum Curmudgeon

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    IMHO it should be illegal for governments to contribute to any projects undertaken by sports franchises. They should need to be self sustaining or cease to exist. They just play cities off of each-other and the tax payer carries the burden as always.

    I'm proud to have been active in the "No Boston Olympics" campaign. We don't need any big, costly public spectacles.
     
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  6. sfsuphysics

    sfsuphysics I don't get it

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    However I am sure your government still pit together a "package" that costs a few million to explore the possibility.

    I'm with you though, sports teams need to have all facilities paid for by the sports team. NFL teams absolute can foot the billion or so for a stadium, but the number one rule in business is why pay for something when you dont have to
     
  7. TheBuzzer

    TheBuzzer HACK THE WORLD!

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    So they will pay like $157 million per year

    each game cost like 60 dollars . so for that 10 million copy title they earn 600 million
    26 percent. however there might be other games that also sells from them so they might be making more this way
     
  8. cageymaru

    cageymaru [H]ard|News

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    Then there is mobile too!
     
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  9. EchtoGammut

    EchtoGammut 2[H]4U

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    They are going to have to sell a lot of loot boxes to pay for that.
     
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  10. shad0w4life

    shad0w4life Gawd

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    All this for a "sport" with a bunch of lanky divas slapping each other and throwing a fit or pretending they were shot, meanwhile rugby and hockey players hit way harder and shrug it off....
     
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  11. sfsuphysics

    sfsuphysics I don't get it

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    And you know there's going to be "loot boxes" to make your dream team "OMG I UNLOCKED LEBRON!!!!!!" videos coming :D
     
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  12. GoldenTiger

    GoldenTiger [H]ard as it Gets

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    But wait, there's more ! You only unlocked rookie LeBron! Do you have what it takes to unlock PRESENT DAY LeBron?!!
     
  13. Joust

    Joust 2[H]4U

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    If you buy the double platinum extended edition, you get elder LeBron AKA the once and future king.
     
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  14. mkk

    mkk [H]Lite

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    This should be about 90 % of the cost of making the next seven games. It's all covered by sales and then the extra fees for unlocks is pure profit. The rising cost of lining pockets to avoid regulation is a pittance