A publishing deal can look like a dream for many game studios. The publisher gives you money, support, and a way to get your game out to players.
But here’s the problem. One small line in the contract can cost you everything.
In Devoted Speakeasy Episode 36, Ninel Anderson, our CEO, spoke with Brandon Huffman, a lawyer from Odin Law and Media. Brandon has worked with Microsoft, Sony, Nintendo, and Netflix, and he knows the fine print that can make or break a studio.
Why This Matters for Game Studios
Game development is risky enough. Missing milestones, staff turnover, platform delays. Those are already hard to manage.
Imagine this:
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Your game sells $10 million -
Your royalty is 50%
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You expect $5 million
But you get zero.
Why? The contract says the publisher collects all costs first, from your share.
This happens. And it’s only one of the risks Brandon warned about. Here are 5 of the most important clauses to watch out for.
Milestones That Block Payment
Most publishing deals pay after you hit milestones: alpha, beta, final.
The trap for studios:
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Publishers redefine “done” and delay payment.
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Extra feedback sneaks in as mandatory work.
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You burn time and budget but still fail the milestone.
Recoupment That Leaves You With Nothing
Recoup means publishers take back their costs before you get royalties. Some contracts apply this only to the developer’s share.
The trap: some contracts recoup 100% from the developer’s share. So if your game sells $10M and your royalty is 50%, you still see zero until all costs are cleared.
Termination for “Convenience”
Some contracts let the publisher cancel whenever they want, with no payout.
The impact on studios:
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Your team is left unpaid mid-project.
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The publisher may keep the IP.
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You have nothing to cover staff or overhead.
Losing Creative Control Without Realizing
Publishers sometimes take creative control without calling it that. Clauses like “Publisher approval required” or “Feedback must be implemented” give them the power to dictate changes.
Strategic Rights That Hurt Your Next Game
Publishers may ask for rights that reach beyond your current game:
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Right of first refusal (ROFR): They get the first chance to publish your next game.
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Last-look rights: They can match other offers.
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Territory rights: They automatically get certain regions.
Lessons From Devoted Speakeasy Ep. 36 With Brandon Huffman
Don’t sign anything you don’t fully understand.
One line in a contract can decide your studio’s future.
Things to check before signing:
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Be clear on what each milestone means so payments don’t get delayed. -
Make sure recoup costs are shared or capped so you aren’t left with nothing.
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Push for fair termination terms so they can’t just walk away.
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Keep creative control if the IP is yours.
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Watch out for rights that tie up your future projects or deals.
Publishing contracts are survival documents, not just legal forms. If you don’t read the fine print, you risk losing your royalties, your freedom, or even your studio.
These five are the most common traps, but they’re not the only ones. From scope creep to dispute clauses, there’s a lot more hiding in the details.
That’s why Brandon’s full breakdown in Devoted Speakeasy Episode 36 is so valuable. He explains the strategies, the questions to ask, and the warning signs every studio needs to know – and there’s more of it.
Watch the full episode here to protect your game and your team.
