The video games industry has become a lucrative business with an expected market value of about $150 billion in 2019. As more and more companies enter the co-dev space, having a good contract in place is key to success in the world of business. In the case of external development for AAA games, we deal with ideas, creative content, and digital products. Since these goods and services are intangible, it can be very tricky to get contracts in place that are fair to all parties.
Good relationships and long-term partnerships don’t just happen, they take a lot of effort and communication from both parties, which is why it’s important to spend the time to put a comprehensive contract in place. That way, both parties are protected in case any conflicts or disputes arise. Here are some important concepts and terms to pay attention to when negotiating your contracts:
Having said all that, the most important thing is that both parties are willing to negotiate. If either side is inflexible or unwilling to negotiate (things we’ve heard are, “our contract is not changeable”; “other have signed this”; “it’s our standard policy”) it may be better to not have a deal than to have a bad one.
The information provided in this article does not, and is not intended to, constitute legal advice. I am not a lawyer and Streamline Studios does not provide legal services, please consult a lawyer to obtain advice with respect to your specific legal matters.