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Percantage of sold copies?

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Hi, I have maybe naive question but still I cant resist asking it :) Ok, so imagine you have a game dev company, and you just signed your first big deal with a publisher. The budget for the game is huge and they want to invest a lot of many in your company. The question is: while negotiating the deal and the profits that your company will get from the finished product, is it common to get a percantage from each sold copy, or is it more like a deal "if we release the game and it will sell 500,000 copies u get 2 mln $ if it sells 1,000,000 u get 2,5 mln $". If this matter was discussed somewhere else please forgive me for my ignorance but my search didnt provide me any rewarding answers. Regards

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Quote:
Original post by jrokosz
The question is: while negotiating the deal and the profits that your company will get from the finished product,
You don't negotiate how much "profit" you will get you negotiate what fee you will get. Profit is what will be left over if you manage to complete the game for less than the fee paid.

Quote:
is it common to get a percantage from each sold copy, or is it more like a deal "if we release the game and it will sell 500,000 copies u get 2 mln $ if it sells 1,000,000 u get 2,5 mln $".
Normally a percentage royalty. Read Developer royalties for more info on how the standard deal works.

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J. Rokosz wrote:
>Ok, so imagine you have a game dev company, and you just signed your first big deal with a publisher. The budget for the game is huge and they want to invest a lot of many[sic] in your company.

So not only are they paying you to develop their game for them, but they're also giving you additional money ("many" bucks or pounds sterling) to buy a piece of your company? Wow, that would be very unusual.

>while negotiating the deal and the profits that your company will get from the finished product, is it common to get a percentage [sic] from each sold copy, or is it more like a deal "if we release the game and it will sell 500,000 copies u [sic] get 2 mln [sic] $ if it sells 1,000,000 u [sic] get 2,5 mln [sic] $".

Read the discussion of "license deals (remuneration)" in my article #35: http://www.sloperama.com/advice/lesson35.htm

>If this matter was discussed somewhere else please forgive me for my ignorance but my search didnt [sic] provide me any rewarding answers.

Read article 29, too. And article 62.

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