iam8bit Sues Skybound Over Alleged Fraud in Stray Distribution Deal
Gaming collectible company iam8bit has filed a lawsuit against Skybound Game Studios, accusing the publisher of fraud and breach of contract in their partnership involving the distribution of the popular cat adventure game, Stray.
Background
iam8bit, known for its boutique physical editions of games and related merchandise, is seeking over $4 million in damages from Skybound Game Studios. The lawsuit alleges that Skybound failed to provide monthly financial reports as agreed and inflated expenses with fake line items.
The Stray Collaboration
The dispute centers around their collaboration on the distribution of Stray, a 2022 game developed by BlueTwelve and published by Annapurna Interactive. iam8bit and Skybound handled the distribution of physical PS5 copies of the game, with iam8bit offering a special edition and a vinyl record of the game’s soundtrack.
Key Allegations
One of the key allegations is that Skybound used insider information, including confidential details about iam8bit’s royalty split with Annapurna, to exclude iam8bit from a distribution deal for the subsequent Nintendo Switch physical edition of Stray. iam8bit also claims that Skybound used marketing materials they created to promote this new release, from which iam8bit would not receive any revenue.
About Skybound Game Studios
Skybound Game Studios is a subsidiary of Skybound Entertainment, which is chaired by Robert Kirkman, the creator of The Walking Dead comics.
Implications for the Industry
The lawsuit highlights the complexities and potential pitfalls of partnerships in the gaming industry. As the case unfolds, it will be interesting to see how it impacts the relationship between iam8bit and Skybound, and whether it will have broader implications for the distribution of physical game editions.
