What is Co-Publishing in Video Games?

Co-publishing​‍​‌‍​‍‌ is when a game developer and a publisher work together to divide costs, share profits, and take on specific roles related to the game launch. There is no exact model, so it will depend entirely on the details of the contract that will dictate how control, costs, and income sharing are arranged. The publisher may offer several forms of assistance, such as game launch, marketing the title, content localization, QA, distribution across platforms, providing platform support, or even funding. On their part, developers often contribute to production funding and may also retain rights or the right to give approvals.

The key elements of responsibility will naturally be determined by negotiation between the two parties. A publisher’s usual contribution can include:

• Community and marketing efforts
• Translation and QA
• Support for platforms and distribution
• Funding of development or launch

Other details need to be clearly agreed upon. These include the territories covered, the platforms, term period, reports, approval rights, ownership or licensing of IP, revenue computation methods, exit conditions.

Although a minimum guarantee and a recoupable advance are often equated in contracts, they may actually be quite different. A recoupable advance is usually received before royalties are earned, and is recovered from revenue under the agreement. A minimum guarantee sets out the minimum the game developer must receive from the sales revenue if the conditions are fulfilled. With one type of publisher structure, the guarantee amount is paid against the advances and royalties rather than being paid up front completely.

Revenue-split percentages for co-publishing agreements are subject to variations based on context. The revenue and cost structures will depend on development funding, marketing commitments, publishing services, bargaining power, and the rights being licensed.

A point for developers to consider is:

• How are platform fees, taxes, and refunds accounted for, and is their deductibility prioritized?
• What publisher-funded expenses are considered recoupable?
• In which order are advances and expenses to be recovered?

Crowdfunding is a way in which supporters donate money to a project, usually before it is released. It is not responsible for creating publisher relationships or delivering publisher services. A direct release indicates the developer runs the publication and no publisher is involved in that part of the business, although some external contractors may still contribute to specific services. Co-publishing is a separate issue, when another company agrees to a contract where it will be jointly involved in the publishing of the game and then will hold rights or be given economic participation as per agreement.

The developers must consider the agreement as an overall rights and economic package. The assessment of this should involve factors beyond just the funds generated or how earnings are distributed. Important issues would be IP rights and use, sequel and DLC rights, ports, price and discount authority, marketing promises, reporting and audit, recoupable expenses, when payments are made, territories, platforms, length of the contract, termination rights, and rights reversion.