Just a few months and blog entries ago, when I began my internship at IndieCade, I asked, “What are the advantages and disadvantages of entering an agreement with a publisher, and what factors are key to maintaining a positive relationship between the two parties?”
I did not come across a solid answer, but rather several different scenarios and solutions. The first part of the question aroused much debate at IndieCade. Some independent game developers claimed that there are no advantages to entering an agreement with a publisher, as it in essence is equivalent to surrendering all creative freedom. Most game developers, including many in the independent game scene, do not share this extreme stance and frankly I find it utterly ridiculous. When money is at risk, industries by nature become more risk adverse, and the video game industry is no exception. However, it would be misleading to claim that all publishers discourage creativity.
Take thatgamecompany, a company founded by graduates of our Interactive Media Division that struck a three game deal with Sony. While the company is not exempt from common budget and time constraints, the members of thatgamecompany have always insisted that Sony allows them to make the game that they want to make. Their agreement elevates them beyond the constraints of most independent game developers by providing them with more resources at their disposal, a relatively wide audience, and the means to live a comfortable lifestyle.
As for the second part of the question, most of the developers I spoke with agreed that a constant stream of communication between the developer and the publisher is the key to a positive relationship. Without constant communication, developers sometimes run into scenarios in which they are forced to make drastic changes to their game to meet the demands of a publisher, or more commonly, miss crucial deadlines.
There are several types of developer-publisher agreements, but most of the developers at IndieCade sought a distribution deal. Distribution deals are common when the developer has completed or has almost completed a game and wants to have it published. The publisher does not have to do much work aside from distribution, and therefore the vast majority of the earnings go to the developer. Playdead, the team that took home the Sound Award for their game Limbo, reached an agreement with Microsoft Game Studios to release Limbo through the XBOX Live Arcade. The game was completely independently developed, thus it was still qualified for IndieCade, but received much recognition from mainstream media outlets because of the agreement. Unsurprisingly, all of the members of Playdead spoke fondly of their publisher. Were they still full of indie spirit? No doubt about it.