itextsharp qr code c# What if the Game Gets Cancelled or Doesn t Sell in Software

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What if the Game Gets Cancelled or Doesn t Sell
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It s important to realize that the advances are not actually a debt owed by the developer back to the publisher They re simply an advance payment against anticipated future earnings If the publisher decides not to publish the product after all, the developer doesn t owe the advances back Or if the publisher fails to sell enough units to recoup all the advances, the developer doesn t have to pay the difference Creating the game is the developer s job; selling it is the publisher s If the developer has done their part, they are entitled to keep the advance money If the publisher fails to sell the game, that s their fault, so they assume the risk if losing their advance money If the development company doesn t want to finish the project for some reason, they can usually back out by repaying all the advances they have received so far However, in practical terms this is seldom possible The developer has been spending that money to pay its employees and subcontractors to build the game; they don t have it to give back The publisher is counting on them to deliver, so the contractual terms are designed to make sure they do Of course, terribly managed developers do occasionally go bankrupt, leaving the publisher in the lurch Back when development companies consisted of only one or two people, they were also known to simply disappear vanish into thin air, taking the source code for the game with them!
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The Fine Print The preceding example gives the bare bones of the advances-againstroyalties system Most arrangements are not that simple, and there are a lot of other things that go into a game development contract as well Games are big business, and where a lot of money is involved you will always find smart lawyers and fine print For example, a publisher could try to sell more games by offering a deal to the retailers: buy one game for $30 and get a second game for a penny If the second game happens
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to be your game, the publisher could claim that the wholesale price was one cent, and you would get royalties of 20 percent of 1 cent! Wise developers make sure there are clauses in the development contract that prevent this kind of thing There are other things to be aware of as well As I mentioned in 3, publishers never actually pay a developer the full amount of the royalties specified by the percentage, because they have to keep a reserve fund of money around in case the retailers want to return the games and get their money back So although the contract states that the development company will receive 20 percent of the wholesale price of every game sold, after the reserves are deducted this could be 15 percent or even less This means that it takes even longer for a product to earn out Occasionally developers need help from the publisher: assistance with knotty programming problems, or specialized services like motion capture that the developer can t do for themselves All this costs money, and depending on the terms of the contract, the publisher may consider any money they spend on such things to be part of the developer s advance, having to be recouped later After all, creating the game is the development company s job; if they need help with it, then should be the ones to pay for that help (goes the theory) But occasionally publishers can be pretty insistent about offering their help, and an unscrupulous publisher might even overcharge a developer for the value of this help whether they need it or not
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You re probably wondering why I m dumping all this rather grim business stuff on you when all you want to do is get a cool job in the game industry and realize your creative potential making great games The reason is that, although you don t have to negotiate these deals in person, they still affect your day-to-day life as a game developer working for an external development company When the boss comes in and says, We hit our milestone two days early! Free beer for everybody! you ll know what she s talking about At this point in your career you don t have to worry about these things but what you see go on around you at a game company will make a lot more sense if you understand them
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