I'm no expert but here is what I know. The publisher gives a game dev company money to make a game. I.E. Activsion may give ID software 2-3 million (?) to make a game. ID sotware will use this money to pay personal, buy equipment, research, and enough to basical cover ALL resourse costs. Of course the game developer company has to present an idea to a publisher before the publisher will make the descision to publish them. The publisher does this of course to make a profit. So ID softeware would have to pay back the 2-3 million in full and they would also have to pay them more becuase Activison needs a profit. Now as we all know the only way a game makes a profit is if it sells. And game companys usualy do not have a marketing department, so the publisher as part of the deal markets and sells the game. After taxes, the publisher takes a %, the store takes a %, the game developers are left with about 4% (?), the publisher does not get 96% I read a PC gamer that told where all the money was taken from. If a game sold 2 million copies that would be some million dollars (50$ a game) and at 4% per game they make not that bad money. Now remember they have already given themselves and everyone that works for them a paycheck (the 2-3 million dollars). So basically that percent belongs to them, to split up as they see fit, or to put back into the company. Now that reason that most game companys go through a publisher is because there is no way in hell a bank is going to loan them that money and because they do not have to worry about marketing. Hope that answers your question in full. Now I must get back to work...

[edited by - HunterTKilla on July 25, 2002 2:24:29 PM]