How To Start Your Own Games Studio, Pt 4

Of course, the best way to learn anything new is to see it in action. With that in mind we've got a fictitious example blow which we've cooked up based on our experiences with publisher negotiations. It seems a suitable place to finish this section too because if you can't learn from this then you'll probably never get it.

So, we'll fade-out to the example below...

Introversion: Good morning, can we talk about the publishing contract for Multiwinia?

Electronic Arts: Hey Introversion, good to see you in the bar last night, I didn’t think you’d be up this early but what a night! Anyway what can I do for you?

IV: We’re a little concerned about your offer for this SKU, from our point of view we’re not seeing a lot of up-side.

EA: Don’t be silly you have a massive royalty – the highest percentage we have ever given an indie developer. Come on IV, you know how hard we had to work for this!

IV: Sure, I thought perhaps we could drop the royalty by a few points and start talking about an advance?


EA:. Could do. Could do. That’s not out of the realm of possibilities. We have a standard list of deductions, but there’s nothing serious in it, how much were you thinking of?

IV: Well we’ve taken an extensive look at our cash-flow, and we think 100k should cover everything.

EA: 100k? That doesn’t really work for us.

IV: <Mute>

EA: You see, the problem is we just don’t have access to that kind of cash. We have another first person shooter clone in production, and the bosses are using up all the spare cash to finance that.

IV: Why would you want to do that?

EA: That strategy has worked very well for us in the past.

IV: <Mute>


EA: Look fellas the best we could do is 75k tops. How’s that?

IV: That doesn’t really work for us.

EA: Okay, I’ll chat to le grand fromage and see if we can get you 80K. How does that work?

IV: That could work. Let’s have a chat and you can drop us an e-mail later, I know you’re busy, so I’ll let you get on.

EA: <In private> They think they have won, but with that acceptance clause the game they end up making will be nothing like the one they pitched. Just got to hope their pesky lawyer doesn’t read the fine print.

<Meanwhile back at the Flying Hamster>
Alex: Jesus IV, have you seen this contract from EA? I don’t care about your advance they’ve got you by the short and curlies here. They can reject whatever you do for no reason other than they don’t like it! Next thing you know you’ll be drawing happy smiley faces on the Multiwinians!

IV: God bless you Alex Chapman of Campbell Hooper. Without you as our lawyer we’d be a gonner.

The above account is entirely fictitious and is based in no part on any persons living or dead. Any resemblance to any actual conversation is entirely co-incidental. Discuss in the forums.