When it comes to negotiating a publishing deal for a video game, there are many fine points to consider to ensure the best outcome for all parties involved. This blog will outline the key areas to focus on when negotiating a publishing deal, and what to consider when making decisions.
Royalties and Revenue Sharing: One of the most important factors to negotiate in a publishing deal is the royalty rate that the publisher will pay to the game developer. This should be a percentage of the revenue generated by the game, and should be agreed upon upfront. It is also important to consider whether the royalties will be based on net or gross revenue, as this can greatly affect the amount received by the game developer.
Advance Payments: Another key point to consider is the advance payment offered by the publisher. This is an amount paid to the developer upfront, before the game is released, and can be a significant part of the overall deal. This can be a good way for developers to secure funding for the game, but it is important to understand that the advance payment will be deducted from future royalties, so it is essential to negotiate a fair deal.
Marketing and Promotion: The publisher should be responsible for marketing and promoting the game, and the developer should negotiate how this will be done. This could include advertising, PR, and marketing campaigns, and it is important to ensure that the publisher has the resources to effectively promote the game.
Intellectual Property: Intellectual property is a critical aspect of any publishing deal, and the terms of ownership and use should be agreed upon upfront. This includes the game code, artwork, and music, and it is important to understand who has the rights to use these elements and for how long.
Control Over Development: The publisher may want to have some level of control over the development of the game, and the developer should consider what level of control they are comfortable with. This may include decisions on features, release dates, and budget, and it is important to negotiate a balance that works for both parties.
Post-Release Support: The publisher should be responsible for post-release support, including bug fixes, updates, and customer support. The developer should consider what level of support they are comfortable providing, and negotiate a fair deal for both parties.
Negotiating a publishing deal for a video game is a complex process, and it is important to consider all of the fine points to ensure the best outcome for all parties involved. By focusing on royalties, revenue sharing, advance payments, marketing and promotion, intellectual property, control over development, and post-release support, the developer can secure a fair and successful deal.