To follow up though, this comment from Kotaku is pretty accurate:
"The way it usually works, the Developer got a certain amount of money up front to make the game.
This money pays the bills and salaries while the game is under development.
Once the game has gone to release ... it depends on the contract between the developer and publisher ...
Usually, there is a set cut of returns designated for the developer. -HOWEVER- The publisher keeps the developer's cut until it has earned back what the publisher fronted originally.
So, the developer won't see any further profits until their ... say 1 or 2% cut has surpassed what it originally cost the publisher to make the game.
And yes, this seems like a pretty raw deal for the developers. But ... There are two sides to this coin.
The publisher is in a very risk based business. Most games don't make back more than they cost to produce. Most of the publisher's bottom line comes from a handful of hit games that pay for the rest."
This is why EA keeps churning out cookie cutter games like Madden or whatever, and is why I personally don't dislike Madden games as much as many others seem to: they're pretty much sure-fire hits, regardless of what one may think of their quality (or lack thereof), and they tend to fund the development of other games that I would rather play instead of Madden.
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timeasmymeasure
no subject
Date: 2010-02-26 05:49 pm (UTC)"The way it usually works, the Developer got a certain amount of money up front to make the game.
This money pays the bills and salaries while the game is under development.
Once the game has gone to release ... it depends on the contract between the developer and publisher ...
Usually, there is a set cut of returns designated for the developer.
-HOWEVER-
The publisher keeps the developer's cut until it has earned back what the publisher fronted originally.
So, the developer won't see any further profits until their ... say 1 or 2% cut has surpassed what it originally cost the publisher to make the game.
And yes, this seems like a pretty raw deal for the developers.
But ...
There are two sides to this coin.
The publisher is in a very risk based business.
Most games don't make back more than they cost to produce.
Most of the publisher's bottom line comes from a handful of hit games that pay for the rest."
This is why EA keeps churning out cookie cutter games like Madden or whatever, and is why I personally don't dislike Madden games as much as many others seem to: they're pretty much sure-fire hits, regardless of what one may think of their quality (or lack thereof), and they tend to fund the development of other games that I would rather play instead of Madden.