They complained, Then Left With the Best exclusivity Deal of All Time – The Story of PS2‘s Blockbuster GTA Deal
The success of the PlayStation 2 was inextricably linked to a groundbreaking exclusivity deal with Take-Two interactive for Grand Theft Auto 3. The story, as recounted by those involved, began not with negotiation, but with complaint. As recounted by Take-Two’s alex Colaço, Sony representatives “came to the Sunset [Marquis Hotel in Los Angeles] to complain.” They ultimately departed with a deal worth $2 million - a deal many now consider the best exclusivity agreement in gaming history.
crucially, Sony understood the potential of the title. “But of course, we did know that Sony were into it, and they promised a lot of marketing and they totally delivered on that,” stated one source.However, the full extent of GTA 3’s impact wasn’t promptly apparent. it took approximately six months after its release for its sustained success to become undeniable.
Unlike typical games of the era, which frequently enough experienced a rapid sales decline after the initial launch window, GTA 3 defied expectations. “Typically a game would sell well for three or four months and then it would just die out. With GTA 3, it wasn’t like that. It sold okay, but then it just didn’t die out. It just kept going as peopel told their friends and it was just picked up organically. It just kept going,” explained a participant in the deal.
Take-Two strategically managed supply to further fuel demand. according to Terry Sumner, they deliberately shipped fewer units than anticipated – around 600,000 when demand reached one million – creating a sense of scarcity. “People were saying it was going to be banned. It was never ever going to be banned, but people believed that, and so what we did is we kept the product really, really tight, so when you saw it in Electronics Boutique, you had to buy it, because if you didn’t buy it they may not be here tomorrow,” sumner said.
Grand Theft Auto 3 quickly transcended the realm of gaming, becoming a cultural phenomenon. Sumner found himself defending the game’s content on primetime television. The game’s appeal even extended to the music industry, with Tommy Matola, head of Sony Music entertainment, offering to curate the soundtrack for free. “He said, ‘I will get you the tracks, I just want to release the CD.’ that was the power of Grand Theft Auto.”
Jamie Lewis recalled the relief and subsequent euphoria that accompanied the game’s continued success. “You get a sigh of relief, I think is fair to say initially, and then this euphoria, because it keeps happening. We really had arrived when these products continued day in, day out, to sell… every 100,000 new PS2s we could pretty much say, ‘Well, we got to sell another 10,000 GTA 3s.'”
While the PS2 would have likely found success irrespective, those involved believe GTA 3 was a pivotal factor.”Of course they would have been successful [without it],” Sumner conceded, “Would they have been as successful without Grand Theft Auto? Probably not, because the amount of coverage and the desirability of that product just sucked people in at a ridiculous rate.” He emphasized that the PS2 was “a piece of plastic unless you have somthing like Grand Theft Auto on it… fundamental to people’s understanding or awakening to the opportunities, cultural opportunities that the PlayStation could deliver.”
David Deering estimated that the exclusivity deal boosted european sales by approximately 20% across the PS2 and PS3 generations.
The deal, born from initial complaints, ultimately proved transformative for both Sony and Take-Two. As Colaço succinctly put it, “They went out with $2m they weren’t expecting. And we did the best exclusivity deal of all time!”
