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Microsoft Cuts Indie Royalties in Half - confirmed in post #13.

gofreak

GAF's Bob Woodward
LJ11 said:
Pretty dumb move if you ask me.

Then again Sony needs to step up and let Indies self publish games.

Sucks for independents.

Sony had a session at GDC about self publishing on PSN for indie devs, but I don't know exactly what that entails or what the steps involved are..

Also as a general comment, I'm guessing PSN royalties are better than 35% if devs have been thinking about moving to it in response to this change. I presume Nintendo's are better than that too.
 
FightyF said:
Looking at the Yahoo aquisition rumours, it just told me that MS didn't have the skills to create their own rival service and had to resort to buying innovative products, rather than making their own more competitive.

What innovative products does Yahoo have that MS wanted to buy? Flickr? Delicious? Guess what... Yahoo bought those as well.

Creating rival services isn't just about skill dude. It's about the time it takes to build up that kind of market share. They weren't buying Yahoo's services as much as they were the 200+ million users. It's about advertising.

If Yahoo has so much skill then why did they lay off 20% of their employees, and why is their future in complete flux right now? The only thing that Yahoo has really done right is Yahoo Answers.

/Off topic
 

Evander

"industry expert"
spwolf said:
Publishing for XBLA title and for Gears of War is very different.

You missed my point.

The whole GoW thing was just Epic being immature.

When the 360 was still on the drawing table, they insisted on adding something to its specs because that needed it for what they were planning with GoW (I want to say it was move Ram, or a better GPU, or something like that.) This ended up costing MSoft a LOT of extra money, because it was the cost of this upgrade multiplied by EVERY unit.

Epic went on to brag about how they cost Microsoft "a billion dollars".

So, DLC time rolls around, and Epic wants to give it away for free. Only, pricing is ultimately the decision of the publisher, and on GoW, MSoft happens to be the publisher. So, since they are the ones who own this content, they decide to charge for it. This upsets Epic, so they make a big scene, which results in people villifying MSoft without looking at the whole picture.

I was one of those people attacking them. When the whole thing came to light, I felt pretty silly for attacking them.

Which is why I'm holding off on attacking them here until there is more data. I'll comment on the rummored practise itself, but attacking the company for it, without proof, is wrong.
 

Wolffen

Member
Evander said:
You missed my point.

The whole GoW thing was just Epic being immature.

When the 360 was still on the drawing table, they insisted on adding something to its specs because that needed it for what they were planning with GoW (I want to say it was move Ram, or a better GPU, or something like that.) This ended up costing MSoft a LOT of extra money, because it was the cost of this upgrade multiplied by EVERY unit.

Epic went on to brag about how they cost Microsoft "a billion dollars".

So, DLC time rolls around, and Epic wants to give it away for free. Only, pricing is ultimately the decision of the publisher, and on GoW, MSoft happens to be the publisher. So, since they are the ones who own this content, they decide to charge for it. This upsets Epic, so they make a big scene, which results in people villifying MSoft without looking at the whole picture.

I was one of those people attacking them. When the whole thing came to light, I felt pretty silly for attacking them.

Which is why I'm holding off on attacking them here until there is more data. I'll comment on the rummored practise itself, but attacking the company for it, without proof, is wrong.


If Epic hadn't forced that change (an extra 256MB of RAM) on Microsoft, there's no way 360 games would be able to look like they are even in the same class as PS3 games, and the PS3 would be outshining it in graphics and AI by miles. I doubt the 360 would be anywhere near as successful as it has been if not for that change.
 

Madman

Member
^^^
Evander said:
You missed my point.

The whole GoW thing was just Epic being immature.

When the 360 was still on the drawing table, they insisted on adding something to its specs because that needed it for what they were planning with GoW (I want to say it was move Ram, or a better GPU, or something like that.) This ended up costing MSoft a LOT of extra money, because it was the cost of this upgrade multiplied by EVERY unit.

Epic went on to brag about how they cost Microsoft "a billion dollars".

So, DLC time rolls around, and Epic wants to give it away for free. Only, pricing is ultimately the decision of the publisher, and on GoW, MSoft happens to be the publisher. So, since they are the ones who own this content, they decide to charge for it. This upsets Epic, so they make a big scene, which results in people villifying MSoft without looking at the whole picture.

I was one of those people attacking them. When the whole thing came to light, I felt pretty silly for attacking them.

Which is why I'm holding off on attacking them here until there is more data. I'll comment on the rummored practise itself, but attacking the company for it, without proof, is wrong.
They insisted they needed twice the RAM for Gears(512 total).

What about that makes Epic's complaints about Microsoft forcing them to charge for Gears content any less valid?
 

Wolffen

Member
Shard said:
Wasn't that whole DLC issue resolved by Futureweapons?

There were 2 different DLCs released for Gears, if I remember correctly. One free via Futureweapons (just maps), one not free initially, but free after somewhere between 3~6 months (maps and new gametype). Epic wanted both to be released for free, no strings attached.

edit: I did remember correctly (for the most part). 2 maps released free via the Future Weapons promo, the Annex gametype was released with a patch, and the Hidden Fronts map pack was released for 800 pts, but became free 4 months later.

As to wanting things, Epic has a history of giving out maps and mods for their products for free. It's one of their calling cards as a developer, and one of the ways they like to show their customers that they care. Not being able to deliver that because of MS is sticking in their craw a bit, I'm sure.
 
I would hope this was negotiable. The better the game the larger the %. Dropping the royalty rate at GDC though is VERY bad publicity. It is the reverse of what GDC is all about. I don't blame MS, I blame the EA management group there which is really fucking things up and are very much out of their depth. You can't run the Xbox division like an enemy to other publishers and developers, you need a different tact.
 

sneaky77

Member
Madman said:
^^^

They insisted they needed twice the RAM for Gears(512 total).

What about that makes Epic's complaints about Microsoft forcing them to charge for Gears content any less valid?

The fact Microsoft published the game and paid for all the marketing, and probably would want to make some of that back
 

ElNino

Member
Warm Machine said:
The better the game the larger the %.
I don't think the quality of the game has anything to do with it (but obviously there may be exceptions in any contract).

I believe the % is more likely based on how much you use MS resources. As in, if you have a different publisher (ie. Sierra) then they may assist in the development/testing/etc. and the % might be closer to the 70% from MS, but the publisher and developer would split that. On the other hand, if you are an indie developer with no publisher on your own and you choose to use MS for the extra help and resources then you may end up closer to the 35%.
 

Wolffen

Member
Mojovonio said:
What ever happened to Modus' game?

Last Alarm was the game Ghost and Modus were working on. A trailer was released last month, I believe. Ghost gave an update not that long ago, but I can't seem to find it.
 

Wolffen

Member
sneaky77 said:
The fact Microsoft published the game and paid for all the marketing, and probably would want to make some of that back


Something tells me they made out fine, even after marketing, after counting up their share of over 4 million units sold.
 

Evander

"industry expert"
Madman said:
^^^

They insisted they needed twice the RAM for Gears(512 total).

What about that makes Epic's complaints about Microsoft forcing them to charge for Gears content any less valid?

Because Epic's complaints were "they are stopping us from doing what we want because they control the distribution channels, and they don't want other content on there to seem like it should be free too, because that will hurt their sales."

When the truth was, they weren't making that decision as a distributor, they were making it as a publisher, and they wanted to make money off a game that they had invested a WHOLE LOT in.



Edit: And you know that Epic never refused their share of the profits, right? They never said "no, reduce the cost by our percentage; we want to save the gamers some money."

Nope, they made their big scene with their little tantrum, and then took the money.
 

LakeEarth

Member
I've bought several XBLA games that I might've not because I wanted to support the developers. Gripshift, N+, etc. If you're telling me that the majority of my cash is just going straight to MS, then my XBLA purchasing is likely to take a huge dive.
 

Madman

Member
sneaky77 said:
The fact Microsoft published the game and paid for all the marketing, and probably would want to make some of that back
The game did 4.5 million in sales and was the big title of Microsoft's Fall 06. Charging for the DLC against Epic's wishes was not necessary.

Because Epic's complaints were "they are stopping us from doing what we want because they control the distribution channels, and they don't want other content on there to seem like it should be free too, because that will hurt their sales."

When the truth was, they weren't making that decision as a distributor, they were making it as a publisher, and they wanted to make money off a game that they had invested a WHOLE LOT in.



Edit: And you know that Epic never refused their share of the profits, right? They never said "no, reduce the cost by our percentage; we want to save the gamers some money."

Nope, they made their big scene with their little tantrum, and then took the money
Epic gave them everything they could have wanted with Gears. Huge sales and more importantly, a big Fall title. Microsoft didn;t need the money.

Yeah, it was their game. They didn't want to charge anything, but they would have been morons not to take the money being made from their own game.
 

MCD

Junior Member
Madman said:
The game did 4.5 million in sales and was the big title of Microsoft's Fall 06. Charging for the DLC against Epic's wishes was not necessary.
i don't think Epic are in position to demand anything if you know what i mean.
 

Mamesj

Banned
Gonna need a frame of reference here before vilifying MS.

Was this all of a sudden, as in "hay guys, guess what, we're chopping your profits in half" or was it understood that 70% was a "promotional" period while Live was getting on its feet?

Also, we have no idea what percentage Sony and Nintendo take.
 

Evander

"industry expert"
Madman said:
Epic gave them everything they could have wanted with Gears

Including the rights...

Epic couldn't have afforded to make gears without someone like MSoft backing them (maybe EA, I dunno) and they DEFINITELY couldn't have afforded to make it such a huge success without MSoft's backing.

The tantrum that they threw was just so that they could get praise as though they had made all the content free, even though they were charging for it, and profiting off of it.
 
Mamesj said:
Gonna need a frame of reference here before vilifying MS.

Was this all of a sudden, as in "hay guys, guess what, we're chopping your profits in half" or was it understood that 70% was a "promotional" period while Live was getting on its feet?

Also, we have no idea what percentage Sony and Nintendo take.

All of a sudden, and Sony's rate is better. I don't know about WiiWare since I'm not working on any games for it.
 

Agent Icebeezy

Welcome beautful toddler, Madison Elizabeth, to the horde!
So, is this correct?

70% publisher/ 30% Microsoft when publisher foots all promotional stuff?
65% Microsoft / 35% indie when Microsoft does all promotional stuff?
 

harSon

Banned
Evander said:
Including the rights...

Epic couldn't have afforded to make gears without someone like MSoft backing them (maybe EA, I dunno) and they DEFINITELY couldn't have afforded to make it such a huge success without MSoft's backing.

The tantrum that they threw was just so that they could get praise as though they had made all the content free, even though they were charging for it, and profiting off of it.

Yup.

I said a while back that if Unreal Tournament 3 were to bomb then Epic would basically be Microsoft's bitch.
 

Mamesj

Banned
Open Source said:
All of a sudden, and Sony's rate is better. I don't know about WiiWare since I'm not working on any games for it.



Then its official-- another chapter in the big book of MS bullshit.
 

MCD

Junior Member
Madman said:
They damn well are in a position to make demands from Microsoft. Why wouldn't they be.

harSon said:
I said a while back that if Unreal Tournament 3 were to bomb then Epic would basically be Microsoft's bitch.

see what i meant now?
 

Madman

Member
Evander said:
Including the rights...

Epic couldn't have afforded to make gears without someone like MSoft backing them (maybe EA, I dunno) and they DEFINITELY couldn't have afforded to make it such a huge success without MSoft's backing.

The tantrum that they threw was just so that they could get praise as though they had made all the content free, even though they were charging for it, and profiting off of it.
I think they could have done Gears wihtout Microsoft. I don't see why they couldn't. Both EA and Activision could afford doing it.

Epic wanted to make the content free, Microsoft prevented that from happening, and they made it public they weren't happy about it. I don't see how that is a negative against Epic.
If EA or Activision did Gears, then it still wouldn't be Epic controlling the DLC
Didn't happen that way with Midway and UT3.
 

sneaky77

Member
Madman said:
I think they could have done Gears wihtout Microsoft. I don't see why they couldn't. Both EA and Activision could afford doing it.

If EA or Activision did Gears, then it still wouldn't be Epic controlling the DLC
 

Kittonwy

Banned
Come come to PSN I welcome yall, come join teh family.
gladtomeetya.gif
 

WrikaWrek

Banned
Madman said:
I think they could have done Gears wihtout Microsoft. I don't see why they couldn't. Both EA and Activision could afford doing it.

Epic wanted to make the content free, Microsoft prevented that from happening, and they made it public they weren't happy about it. I don't see how that is a negative against Epic.

Here's the thing. Would other publishers release the content for free?

I don't see why. Some of the content was sponsored and free, but as the developer to try and call all the shots seems kinda bullying by Epic part themselfs.

Point is, MS paid for it, and they are now going to act like a publisher and try to make money with it. I don't know, that whole EPIC situation kind rubs me the wrong way, they try to act like they are self publishing and are in charge, they aren't, and if they didn't wanted to be like that then next time instead of going up to Peter Moore or Jay allard and saying "I'm gonna make your next halo" go to other publisher.

Seriously Epic acts really bully, and they fell on their asses with Ut3 so that was kinda funny.
 

X26

Banned
I can see them cutting it, I mean 70% is pretty generous, but holy fuck that's a pretty drastic reduction
 

Evander

"industry expert"
Madman said:
I think they could have done Gears wihtout Microsoft. I don't see why they couldn't. Both EA and Activision could afford doing it.

Epic wanted to make the content free, Microsoft prevented that from happening, and they made it public they weren't happy about it. I don't see how that is a negative against Epic.

You think it's professional behavior to make a business disagreement public for the purpose of trying to strongarm the other side through public pressure to conform to what you want?

When you resort to tactics like that, you may gain some public favor, but folks are more weary about future business that they do with you.

We want this industry to seem professional, no?





Regardless, if EA and Activision had published Gears, it WOULD NOT have become the "definitive" 360 title that it did. It gained that status because of Microsoft thrusting it high above everything else. I'm not saying it doesn't deserve that status, just that it didn't really have to work for it like it would have.



And, again, ultimately, if they wanted to control publication of the game, then they shouldn't have sold the rights!
 

Agent Icebeezy

Welcome beautful toddler, Madison Elizabeth, to the horde!
Madman said:
They saved holiday 06 for Microsoft. They owe them nothing, and surely are not their bitch.

Their flagship game is floundering at retail. Yes, they are. They advertised UT3 as 'from the makers of Gears of War'

As of now, they are
 

Evander

"industry expert"
Madman said:
They saved holiday 06 for Microsoft.

They did the job that they were hired to do, and with MSoft paying the tab.

If it wasn't Epic, it would have been another studio. I'm not saying the game to come out of that would have been as good, but MSoft has the money to make sure it would have been as successful.
 
Kittonwy said:
Come come to PSN I welcome yall, come join teh family.
gladtomeetya.gif

Well, if they want their games heavily delayed with little to no promotion visible on the console to people who own then yeh, great idea!
I mean they'd get more of a cut but... also not as many sales.
 

chubigans

y'all should be ashamed
Hey guys,

For those wondering how the PSN royalties fare, here's an answer from a dev I won't name:

The financial side of the contract with Sony is very similar to a record deal. They fund the development costs (like an advance), when the advance has been paid off (at a large % of gross) we start getting royalties (at a much smaller % of gross).

However many devs are different. This one had their project funded by Sony, and as far as I know Microsoft does not fund any Arcade games.

Other devs that fund their own titles for release on PSN (like Capcom) get larger royalties than XBLA, but how much I'm not sure. Definitely more than most channels, since Sony is trying to establish their market at the moment.

Microsoft has always quashed indie development on the XBLA (several games exist currently on the PSN simply because Microsoft wasn't interested in bringing them to its own service) and heavily favored casual games. XNA seemed like a step forward in the right direction, but since the service has started it has been nothing more than a controlled service to net MS more money off of very little product.

As an indie dev myself, I hate Microsoft for not reaching out more to us. Sony and Nintendo both aren't a walk in the park to get set up for either, but it's totally unlike MS's legal and financial barriers that prevent anyone without thousands of dollars to start churning out games for XBLA. And they have no interests in changing that.
 

Tellaerin

Member
Evander said:
Including the rights...

Epic couldn't have afforded to make gears without someone like MSoft backing them (maybe EA, I dunno) and they DEFINITELY couldn't have afforded to make it such a huge success without MSoft's backing.

The tantrum that they threw was just so that they could get praise as though they had made all the content free, even though they were charging for it, and profiting off of it.

Man, that's a serious load of bullshit, Evander.

Epic couldn't have afforded to make Gears without someone like MS backing them? Mark Rein's gone on record for saying that Gears was produced for only $10 million. Somehow, I think they could have swung the funding for the title even without MS' support.

It also sounds to me like you're implying that Epic never had any intention of providing the Gears DLC for free, and were just 'throwing a tantrum' to make themselves look like the good guys while secretly screwing over their fans. Again, I have to call bullshit. Epic has a long-standing tradition of supporting their games with free DLC as a 'thank you' to customers. If they hadn't been blocked from releasing that content for free, I'm sure they would have. Since MS insisted on charging for it, they would have been fools not to take their cut of the profits. (Should they have just handed that money back to MS instead?)
 

Amir0x

Banned
*slaps forehead*

Seems today is 'stupid console manufacturer day.'

Microsoft: "Cut Indie Royalties in Half!"
Nintendo: "You should pay for part of our awful online service!"
Sony: "We think consumers will get tired of Wii's outdated graphics, just like they did with the DS!"

Retards!
 
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