What Should a Game Publishing Agreement Look Like?

This analysis provides a benchmark for indie game publishing agreements, utilizing data collected from 30 non-mobile indie game contracts. The primary objective is to offer developers a clear understanding of industry standards regarding financial advances, revenue sharing, and intellectual property ownership. By establishing these benchmarks, the findings serve as a guide for developers navigating negotiations with potential publishing partners.

Key findings indicate that the average advance for game funding is $318,000, though this figure rises to $460,000 when excluding deals that provide no upfront capital. Approximately 18% of agreements involve no advance, often correlating with higher revenue shares for the developer. Regarding recoupment, 42% of contracts require the publisher to fully recoup the advance before the developer receives any revenue, while 58% allow for a shared revenue split during the recoupment phase. On average, developers receive a 60% revenue share, though this varies based on the presence of an advance; deals with an advance typically result in a 55% share for the developer, whereas no-advance deals often yield 71%.

The scope of this data is limited to the non-mobile indie sector as of August 2020. The methodology relies on aggregated contract data presented at the GDC Summer virtual event, intended to provide a foundational reference point for developers. Beyond publishing agreements, the analysis highlights broader industry trends, such as the reliance on deep discounting to achieve visibility on the Nintendo Switch eShop and the strategic importance of playable prototypes and direct communication when pitching to publishers. These insights emphasize the necessity of data-driven decision-making in both contract negotiations and game marketing strategies.