“It was a bad publishing contract”: The Creators of Rise of Industry Earned Almost Nothing

The case of Rise of Industry highlights the significant financial risks independent developers face when entering into publishing agreements that fail to account for operational overhead. Alex Mochi, founder of Dapper Penguin Studios, reports that despite the economic strategy game generating millions in gross revenue, the studio ultimately operated at a loss, leading to the forced sale of the intellectual property to publisher Kalypso Media and its subsidiary, Kasedo Games.

The partnership, initiated in 2016, originally featured a $75,000 advance and a tiered revenue-sharing model. While the game achieved commercial success following its 2018 early access launch and 2019 full release, Mochi contends that poor management and marketing transitions under Kasedo Games stifled potential earnings. By 2021, the studio had accrued $140,000 in debt, forcing Mochi to sell the game’s rights for $5,000 to avoid bankruptcy. This outcome underscores the disparity between gross revenue figures and the net profitability required to sustain independent development teams.

In response, Kasedo Games disputes these claims, characterizing the arrangement as a licensing deal where the developer retained responsibility for all production costs. The publisher further clarifies that the total compensation provided to the developer included an additional $45,000 beyond the initial IP buyout. This conflict illustrates the complexities of publishing contracts, where differing interpretations of financial obligations and revenue distribution can lead to long-term disputes between creators and their publishing partners.