Publisher Funding

So far, we have covered all the essential points that will need to be discussed with a source of financing. But where do you go now? Whom should you talk to? The most common option is to sign with a game publisher, but it is not the only one. Here are some of the issues that might arise when negotiating publisher funding.

Control

The publisher will want to assume the role of producer ([McGilvray03]). This is usually a good idea because their knowledge of the market is probably better and more current than yours is. The producers working for large companies are usually very knowledgeable and can help you make your product appealing to a larger audience, help with game play tuning, and so forth. However, the contract must set boundaries delineating what can be changed by the publisher; otherwise, the number of features might double in a month, and your project plan quickly become obsolete.

Manage relationships with the publisher well. The team will lose some power over their own game; make sure that they know it is for the project's greater good.

Ownership

Ownership is a very important and controversial topic. Typically, the publisher will want to own the technology used in the game, which will allow them to legally reuse it without paying you extra sums. If your game is almost ready and you have other opportunities elsewhere, the publisher will be the one making concessions in this area; otherwise, you might have to give up ownership of the software. At the very least, make sure you get a percentage of the profits they earn from re-using your work.

Protecting Your Team

Get a minimum number of units sold guaranteed in writing. A publisher buying a product that competes with their franchise title and never releasing it, in order to protect their sales, is a nightmare scenario that rarely happens but one that you must be protected against. Make sure your contract guarantees a release in stores and a minimum marketing budget, and negotiate a "kill fee" to protect yourself in case of cancellation.

And, of course, make sure that the milestone payment schedule is structured in such a way that you will never experience cash flow shortages. Since checks won't be mailed until the publisher has approved a milestone delivery, build the delay into your plan.