Buying a game from a dead publisher, where does the money go?

Recommended Videos

J Tyran

New member
Dec 15, 2011
2,407
0
0
Just noticed that Saints Row: The Third is going cheap and its the complete version too. It made me curious though with THQ gone though where does the money go to? Does it go towards any debts left? Or the new owners of the IP, does the dev still get some of the cash?

Seems its on a case by case basis but if I was going to buy it I would like to think some of the money goes to the developer still.
 

Chimpzy_v1legacy

Warning! Contains bananas!
Jun 21, 2009
4,789
1
0
Good question, I've never really given it any thought.

Though I suppose the money would go to Koch Media (Deep Silver), the new owners of the IP. They've also acquired the Saints Row dev, Volition Inc, so they're probably still getting their cash.
 

TrevHead

New member
Apr 10, 2011
1,458
0
0
The dev's themselves certainly wont be getting any cash since they are a subsidiary of the publisher, Imo it's best to look at it as supporting the publisher who will keep the studio open making the games you want if they make enough money.

At a guess I'd say it's more likely than not that whoever owns the IP owns the publishing rights. Has the name of the Publisher been changed on the store page?
 

J Tyran

New member
Dec 15, 2011
2,407
0
0
TrevHead said:
Has the name of the Publisher been changed on the store page?
Just checked, yes it lists Deep Silver as the publisher now. I guess they get the money, probably helps recoup some of the investment they made while they wait for new games to be made.
 

ohnoitsabear

New member
Feb 15, 2011
1,236
0
0
TrevHead said:
At a guess I'd say it's more likely than not that whoever owns the IP owns the publishing rights. Has the name of the Publisher been changed on the store page?
Yes. Steam currently lists the publisher of Saints Row: The Third as Deep Silver. So in this specific instance, they're the ones getting it.

What I want to know is what happens when somebody doesn't pick up the publishing or ip rights. This is something I've never really thought about, and I would kind of like to know the answer now.
 

J Tyran

New member
Dec 15, 2011
2,407
0
0
ohnoitsabear said:
TrevHead said:
At a guess I'd say it's more likely than not that whoever owns the IP owns the publishing rights. Has the name of the Publisher been changed on the store page?
Yes. Steam currently lists the publisher of Saints Row: The Third as Deep Silver. So in this specific instance, they're the ones getting it.

What I want to know is what happens when somebody doesn't pick up the publishing or ip rights. This is something I've never really thought about, and I would kind of like to know the answer now.
The EULA lists THQ still, so not sure whether its not been updated or not but as its a legal thing I would speculate its up to date so the situation seems more complicated. So I am confused now, Store page lists Deep Silver as the publisher but the licence agreement is with THQ.
 

Maxtro

New member
Feb 13, 2011
940
0
0
Oh yeah? Here's a hard one for you guys.

Kingdoms of Amalur: Reckoning.

Developer is Big Huge Games. Publisher is 38 Studios.

Neither still exist. Yet the game is $30 on Steam.
 

karma9308

New member
Jan 26, 2013
280
0
0
Also, Darksiders 1 and 2 is still on sale yet the studio is closed and THQ is all but dead.
 

ThriKreen

New member
May 26, 2006
803
0
0
J Tyran said:
Just noticed that Saints Row: The Third is going cheap and its the complete version too. It made me curious though with THQ gone though where does the money go to? Does it go towards any debts left? Or the new owners of the IP, does the dev still get some of the cash?
Usually to the retailer/distributor that's selling it to you.

Follow the money:
- Publisher pays studio to make the game
- Publisher sells the game to retailers (or in the case of digital distribution, a list of serial keys), usually at wholesale prices.
- Retailers mark the price up and sell it to the gamers.

There's some other stuff with expected sales and how much over a certain amount would result in a studio getting a bonus or royalties and such, but that will depend on the publishing deal (like bad ones like the hitting 85% metacritic one).

And I'm not sure how later discounts work, as it could be by % or a flat rate. As technically the retailers have already paid for their supply of the game, but I'm not sure if it's entirely up to them to decide how much to sell it for, even if it's at a loss to offload their supply. But I suspect there are some provisions with the publisher for when and how much.

Not sure how it works when the publisher has gone kaput though, I suspect there's some % of profits the retailers have to give back, so in that case it might go towards some temp association that can then distribute it to the creditors.
 

TheRaider

New member
Jul 4, 2010
81
0
0
ohnoitsabear said:
TrevHead said:
At a guess I'd say it's more likely than not that whoever owns the IP owns the publishing rights. Has the name of the Publisher been changed on the store page?
Yes. Steam currently lists the publisher of Saints Row: The Third as Deep Silver. So in this specific instance, they're the ones getting it.

What I want to know is what happens when somebody doesn't pick up the publishing or ip rights. This is something I've never really thought about, and I would kind of like to know the answer now.
It goes to the administrator of the bankrupt business.
 

Meatspinner

New member
Feb 4, 2011
435
0
0
Maxtro said:
Oh yeah? Here's a hard one for you guys.

Kingdoms of Amalur: Reckoning.

Developer is Big Huge Games. Publisher is 38 Studios.

Neither still exist. Yet the game is $30 on Steam.
The state of Rhode Island owns the rights to that game. So any earnings the game makes goes to the state
 

Tanis

The Last Albino
Aug 30, 2010
5,264
0
0
I thought EA published KoA:R, so they're the ones that get the money?
 

Dryk

New member
Dec 4, 2011
981
0
0
Maxtro said:
Oh yeah? Here's a hard one for you guys.

Kingdoms of Amalur: Reckoning.

Developer is Big Huge Games. Publisher is 38 Studios.

Neither still exist. Yet the game is $30 on Steam.
It was on Steam sale the other day so SOMEONE is looking after it
 

Not Matt

Senior Member
Nov 3, 2011
555
0
21
you know what would have been really great and maybe a bit sweet, a rule that said that any company that dies but still gets it stuff sold should give all the money they make from beyond the grave to something along they lines of starving children or cancer recherche. sadly we don't live in a perfect world otherwise that would already be happening.
THQ tried to sell all their rights to the different franchises they had so maybe the money goes to the company who bought it?
 

Strazdas

Robots will replace your job
May 28, 2011
8,407
0
0
J Tyran said:
Just noticed that Saints Row: The Third is going cheap and its the complete version too. It made me curious though with THQ gone though where does the money go to? Does it go towards any debts left? Or the new owners of the IP, does the dev still get some of the cash?

Seems its on a case by case basis but if I was going to buy it I would like to think some of the money goes to the developer still.
It goes to the new owners of the Saint Rows franchise. Deep Silver wasnt it? They own the rights now and they get all the profits. Whether the devs get anything is a matter of contract, however standart practice is to pay X amount for thier work and from then on nothing. some studios give bonuses if the game is well rated/sells well.

J Tyran said:
The EULA lists THQ still, so not sure whether its not been updated or not but as its a legal thing I would speculate its up to date so the situation seems more complicated. So I am confused now, Store page lists Deep Silver as the publisher but the licence agreement is with THQ.
EULA has no legal power. it can state that unicorns are coming to take over the world as far as legality is concerned.
 

noahd

New member
Sep 21, 2010
26
0
0
Dryk said:
Maxtro said:
Oh yeah? Here's a hard one for you guys.

Kingdoms of Amalur: Reckoning.

Developer is Big Huge Games. Publisher is 38 Studios.

Neither still exist. Yet the game is $30 on Steam.
It was on Steam sale the other day so SOMEONE is looking after it
EA
 

Shoggoth2588

New member
Aug 31, 2009
10,250
0
0
I always assumed that when you buy a game (quick note: these are my thoughts covering physical purchases) it goes to the store. I could be way way off about this but it's the shops who pay for the games form the companies who make said game. The longer those games sit on the shelf the lower the price (in theory) and should the company that makes that game dies (like the people who made Kingdoms of Amalur) the money stays in the store...let me back up...I'm assuming here that individual stores order X number of game Y from company Z once the stock runs out so that is good...unless the game doesn't sell...

I think I may be a bit too tired to post efficiently...
 

CrystalShadow

don't upset the insane catgirl
Apr 11, 2009
3,829
0
0
Shoggoth2588 said:
I always assumed that when you buy a game (quick note: these are my thoughts covering physical purchases) it goes to the store. I could be way way off about this but it's the shops who pay for the games form the companies who make said game. The longer those games sit on the shelf the lower the price (in theory) and should the company that makes that game dies (like the people who made Kingdoms of Amalur) the money stays in the store...let me back up...I'm assuming here that individual stores order X number of game Y from company Z once the stock runs out so that is good...unless the game doesn't sell...

I think I may be a bit too tired to post efficiently...
That sounds about right. Except that's only really valid for physical stock. For digital distribution it makes little sense, because there's no stock to speak of.

But for physical stock it's easy:

1. Developer makes game
2. Publisher pays developer
3. Publisher creates X copies of game.
4. Shops buy Y copies of game to sell. (Publisher gets the money for the Y copies sold)
5. Shops sell Z copies. (Hopefully for more than they paid for them.)

So... If it's a physical copy of a game, then the shop gets the money, because they already paid the publisher when they first got the stock. (Thus the publisher got paid before the game was actually sold.)

There's more to it than that ultimately, because retailers can return unsold stock, or buy stock on credit, or whatever.

But for digital sales, the logistics are quite different.
Also, for sales of games whose creators went out of business ages ago, it's also pretty confusing.

It's a known issue though that part of the problem with old copyrighted works is tracking down the current owners.
Since you can get in legal trouble for distributing copyrighted works, you want to make a deal with the owner before you do so. But if what you want to distribute is old, it can get very difficult at times to find the owner... And that's caused more headaches than you might expect.
 

V da Mighty Taco

New member
Apr 9, 2011
890
0
0
Meatspinner said:
Maxtro said:
Oh yeah? Here's a hard one for you guys.

Kingdoms of Amalur: Reckoning.

Developer is Big Huge Games. Publisher is 38 Studios.

Neither still exist. Yet the game is $30 on Steam.
The state of Rhode Island owns the rights to that game. So any earnings the game makes goes to the state
The thought of an entire state or any part of a government owning a "not pure propaganda" video game franchise is funny to me.