Publisher Secrets: Fair Contracts & The Future of Game Development!

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The CEO of Manor Lords publisher Hooded Horse, Tim Bender, has sparked a debate in the gaming industry by arguing that game agreements often violate fundamental contract principles. Bender emphasized that the way many publishing contracts are structured is unfair to developers, citing an imbalance in risk distribution as the primary issue. He believes that the principles of contract law, which aim to benefit all parties involved, are frequently overlooked in the gaming industry.

Why it matters

Bender's insights into contract principles and his stance against unfair practices raise thought-provoking questions about the future of game publishing and the importance of fair agreements for the industry's long-term success. His comments highlight the ongoing tensions between developers and publishers, and the need for a more equitable distribution of risk and rewards.

The details

Bender explained that one of the key principles of contract law is that risk should be borne by the party best equipped to handle it. However, in the context of game publishing, this principle is often ignored. Hooded House's standard contract with developers allocates 65% of revenue to the studio, with the publisher taking a larger share if it has partially funded the game. Additionally, the publisher has no recoup, meaning it doesn't prioritize getting back the money it has spent from revenue. Bender criticized the practice of publishers recouping their costs, calling it 'fundamentally stupid' and arguing that this approach can hinder the success of games that could have recovered with proper support.

• Last year, Hooded Horse made headlines by announcing that it would not work with studios using generative AI, describing the technology as 'cancerous'.

What they’re saying