Join John Romero for an in-depth discussion in this video When to give up ownership or royalties, part of Start Your Own Game Company with John Romero.
- At some point you may need to give up…some percentage points on your royalty.…If you've negotiated for a back-end royalty on your game,…a lot of times publishers will build penalties into that…if you can't ship your game.…If you can't get your game delivered on time,…sometimes for every month past this point…you lost a percentage of your royalty…or two percent or whatever…like a lot of times they have some onerous stipulations…in the contract…that will substract your percentage points.…If they don't, let's say they don't,…ways that you would be giving up points in your royalty…is would be because you need more money.…
I need more money to make this game…means you're giving up some royalty…on the back-end,…but the calculation you're making is that…the cool stuff you're putting in…will far make up the amount that you would possibly lose…over time with your revenue, your royalty being lowered.…So it's a really big decision to make…if you're going to give up any percentage points on royalty.…But that's usually the only kinds of percentage…
For a different perspective on breaking into the game industry, check out the interview with John's wife and creative partner, Brenda Romero, in our Insights with a Game Designer course.
- Creating a business plan for a game design company
- Registering a business
- Understanding the costs of running a game company
- Getting funding from publishers and investors
- Keeping a game company going and growing
- Handling payroll and HR
- Hiring game development contractors
- Developing original intellectual property (IP)