Publisher CEO Calls for Fair Revenue Sharing in Gaming Industry
Tim Bender, CEO of Hooded Horse, recently shared his perspective on the challenges facing PC game developers and the role of publishers in fostering a sustainable industry. According to Bender, discoverability on Steam isn’t the primary issue for PC games. Instead, he argues that the real problem lies in mismatched expectations.
Mismatched Expectations
Bender believes that while Steam’s discovery system is effective, developers and publishers need to be more realistic about a game’s potential market and budget accordingly. He emphasizes that sustainability comes from ensuring a game’s budget is such that moderate sales can cover costs and allow the team to continue working on future projects.
Revenue Sharing & Recoup Terms
Bender criticizes publishers for taking too much revenue from developers, especially under recoup terms that guarantee publishers break even at the expense of developers. He suggests that publishers—particularly large corporate entities—should be willing to take losses on some projects because they can afford to spread the risk. This approach would allow developers to continue making games even if one project doesn’t perform well.
Corporate Risk & Studio Closures
Bender also mentions that corporate owners should not shut down studios simply because they didn’t meet expectations. Instead, they should expect some losses to be balanced out by other gains. He believes large corporate entities that can absorb risk should be prepared for occasional setbacks.
Barriers to Change
However, Bender acknowledges that many large corporate entities are unlikely to adopt this approach. He attributes this to shareholder expectations and greed, which often prioritize constant growth and unmitigated success over the well‑being of developers.
Conclusion
Bender’s insights highlight the need for a more sustainable and fair approach in the gaming industry, one that supports developers and allows for realistic expectations and risk‑taking.
