How Sony’s Complaints Led to the PS2’s Historic GTA Deal
▼ Summary
– The PlayStation 2’s success was significantly boosted by a timed exclusivity deal for Grand Theft Auto 3, Vice City, and San Andreas, which helped drive console sales and became top-selling titles.
– Sony secured the deal through informal negotiations, offering Take Two co-marketing, upfront cash, and reduced production costs in exchange for console exclusivity periods.
– The partnership was built on strong personal relationships and mutual trust, with Sony providing extensive support and aligning with Rockstar’s creative vision for mature games.
– Exclusivity was initially only for Europe, but Sony’s U.S. division later joined the deal after seeing GTA 3’s sales success, while Microsoft’s pitch was rejected due to cultural misalignment.
– The GTA 3 deal’s impact was immense, estimated to have increased PS2 sales in Europe by 20% and establishing a strategic partnership that continued with subsequent GTA releases.
The landmark partnership that brought Grand Theft Auto exclusively to the PlayStation 2 originated not in a corporate boardroom, but during informal gatherings thousands of miles from Sony’s Tokyo headquarters. As the console celebrates its 25th anniversary in North America, the story behind this transformative deal reveals how casual conversations and personal relationships shaped gaming history. While the PS2’s success stemmed from multiple factors, its extensive game library, competitive pricing, and DVD playback capability, securing timed exclusivity for GTA III, Vice City, and San Andreas proved crucial. These three titles became among the console’s top-selling games, driving hardware sales significantly.
Chris Deering, then-president of Sony Computer Entertainment Europe, believes the arrangement boosted European console sales by approximately twenty percent. Recent interviews with four key negotiators provide unprecedented detail about the agreement’s complexities, including how Sony nearly missed securing exclusivity in the American market, the financial incentives offered to publisher Take-Two Interactive, and Microsoft’s potential to disrupt the arrangement entirely.
The journey began unexpectedly when Deering asked Sarah Thompson, who led Sony’s third-party game evaluation team, about promising titles during a company social event. She mentioned Grand Theft Auto III looked “really cool,” though contractor Andy Macoy had initially identified the game’s potential. This casual remark placed GTA III on Sony’s shortlist for E3 2000 exclusives, according to Zeno Colaço, then-vice president of publisher relations at SCEE.
Facing Microsoft’s impending Xbox launch, Deering traveled to Los Angeles determined to secure exclusive content. “They get a billion dollars annually from Windows licenses,” he noted regarding Microsoft’s resources. “How do we get ahead of this? I didn’t want them to take away our chance at winning two console generations consecutively.”
The pivotal meeting occurred at a Sunset Marquis hotel villa where Take-Two executives Kelly Sumner and Gary Lewis met with Sony’s team. Colaço recalls the meeting began with Take-Two complaining about another game’s approval issues, possibly State of Emergency, which Sony deemed excessively violent. To smooth tensions, Sony proposed exclusivity for GTA III and another title, knowing the game showed special promise.
Sumner remembers events differently, insisting any approval process discussions were completely separate from the GTA negotiations. He maintains exclusivity wouldn’t have been used as leverage because “Sony needed it more than we did.” Both Lewis and Deering don’t recall Colaço’s version either.
The initial offer involved Sony matching $1 million of Take-Two’s marketing expenditure for GTA III. Subsequent negotiations between Deering and Sumner added two crucial elements: upfront cash payments and substantial production cost reductions. With disc production costing approximately $11 per unit at the time, Sumner acknowledges “any reduction on that is very nice,” while Deering estimates the discount around $3 per unit. Given GTA III’s 8.5 million PS2 sales, this potentially saved Take-Two over $25 million.
The partnership extended beyond financial terms. Both companies shared compatible visions for gaming’s future. Deering sought mature content to attract adult players, while Take-Two valued Sony’s understanding of their creative direction and non-interference approach. Lewis explains, “We were keen to get into bed with Sony… we knew we could work with them.” Sumner adds that Sony proved “massively supportive” throughout the process.
Final approval required consent from Take-Two’s CEO and Rockstar Games. Sumner describes the decision to focus exclusively on PS2 as a “massive, massive bet.” The agreement concluded during an evening phone call outside a Windsor Chinese restaurant, establishing two years of European console exclusivity for GTA III.
The arrangement nearly excluded North America initially, where Sony Computer Entertainment America showed little early interest. Deering suggests the American division only joined “at the very last minute” after industry buzz grew, while Colaço believes SCEA only committed after witnessing the game’s sales impact.
As Xbox’s launch approached, Microsoft reportedly rejected Rockstar’s pitch for GTA III. Sumner doubts any Microsoft deal would have materialized regardless, citing stronger rapport with Sony. “They just really didn’t get it,” he says of Microsoft. “You do business with people you like or trust.”
The successful collaboration continued through Vice City and San Andreas, though exclusivity periods shortened from two years to twelve months then seven months. Financial terms increased substantially with each installment as the franchise’s popularity exploded. Colaço notes negotiations evolved “from transactional to strategic partnerships” as the relationship deepened.
Before release, Rockstar worried about GTA III’s reception after a poorly received E3 showing. Obbe Vermeij, then technical director at Rockstar North, recalls concerns until Sony’s marketing support materialized. The game’s unusual longevity, selling consistently beyond the typical three-month window, signaled its breakthrough.
Take-Two enhanced demand through controlled distribution, shipping fewer copies than retailers requested to maintain scarcity. Sumner explains their strategy: “When you saw it in Electronics Boutique, you had to buy it because it might not be there tomorrow.”
The franchise’s cultural impact soon became undeniable. Sumner appeared on primetime television defending the game’s content while Sony Music’s Tommy Matola provided music licensing at no cost, recognizing the marketing value. Lewis remembers the euphoric realization that for every 100,000 new PS2s sold, approximately 10,000 additional GTA III copies would follow.
While quantifying the exclusivity’s exact impact remains difficult, all parties acknowledge its significance. Sumner reflects that without Grand Theft Auto, Sony “would have been successful, but not as successful.” Deering estimates the deal generated at least twenty percent additional sales across Europe during the PS2 and PS3 eras.
What began as complaints over drinks at a Los Angeles hotel ultimately produced what Colaço calls “the best exclusivity deal of all time,” demonstrating how personal connections and shared vision can redefine an industry.
(Source: IGN)
