I''ve heard a lot of numbers thrown around about the percentage royalties most game developer contracts with publishers are. I''ve heard anything from 15% to 35%. But this assumes that the publisher has backed the developer with an advance. My company is pursuing the development of an AAA title and we do not require an advance (long story). Does anyone have an opinion on the type of deal that could be struck with a publisher in this case since they''d really only be acting as a marketer and a distribution channel? Thanks Jonathan Neuhold Lead Game Designer Scribblesoft

Actually royalty figures range from 0% to 35% (or higher). There are as many deals as there are fish in the sea and the amount you get will depend on what other items you negotiate (the marketing spend, whose name is on the box, who pays for manufacturing, who bares the inventory costs and associated risks, what format and most of all how much they want the title - how good it is, how well you pitch it and how well you negotiate).

I think what your looking at is more of a hybrid co-publishing deal. You pay development and they pay all the rest (which will work out to be about equal if you get a good guaranteed marketing spend). When I was at VIE Europe we did various distribution/marketing deals and at least one was a similar situation to this. I think we did something along the lines of 50% from unit 1 until the title recouped then 75% for the developer after that.

Don''t get your hopes up though. That was with a developer that had four products in developement and so was a very attractive proposition. As a new company without a strong track record you may end up with little more than a straight publishing deal.

Dan Marchant
Obscure Productions

Thanks a lot, that ifo was very helpful.

Anyone else with other experiences?

You might want to consider letting a publisher give you money to complete your game.

Here''s why. If you have the luxury of not needing the cash to complete your game, you have a great bargaining chip. Stash a portion of it away and structure your deal to include money from the publisher. You need the publisher''s ad space, shelf space and marketing muscle.

Where is their incentive to give you any of this if they have nothing invested in your company/product? I know, they should consider it free money and risk free sales but its not that simple. The reality is that your product will be competing for the attention of the publisher''s sales and marketing folks. The publisher is not just publishing your game, and probably has money invested into the same games that your competing with. Because, they have nothing to lose with your game, the publisher may not be inclined to care about your game until all of the other botched products, delayed shipments, and overbudget games are taken care of. Your only remedy to this is to get them to buy into your game. Its one way to ensure your game gets enough attention while in the hands of the publisher. Besides, it has the benefit of not costing your own company capital, albeit for a cost in revenues later.

I consider the publisher finishing a product to be the best of both worlds. They give you a bit of money, you save money, they market your game properly, your both bought into making it successful... Lopsided deals don''t seem to work for me, no matter which side it is tilted towards. Its fun to make publishers your enemy, but its seem more realistic to declare them a partner and make sure your business plan prepares you to deal with them. Just because you can do it yourself, doesn''t mean you should or have to do it yourself.

Kressilac

No...publishers work mostly with experienced development studio''s. Studio''s with there own staff and office space etc.
They want experienced developers with a good track record.