Business

The Developer-Publisher Relationship: What Developers Are Signing Up For

By / April 29, 2025

When a game developer signs a publishing agreement, a business relationship is established that extends beyond merely getting a game to market. Understanding the nature of this relationship is crucial in ensuring that a deal aligns with long-term goals. The Role of a Publisher A game publisher provides services that developers may not have the …

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How New U.S. Tariffs Could Reshape the Video‑Game Supply Chain

By / April 23, 2025

On April 5, 2025, the President of the United States announced that the United States will impose a minimum 10% baseline tariff on all goods imported from around the world, with many countries subject to higher rates. This announcement sent shockwaves through many economic sectors, causing a large amount of concern over supply chain costs, …

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What is Convertible Note Overhang?

By / December 2, 2025

Convertible notes and Simple Agreements for Future Equity (SAFEs) are widely used by startups to raise early-stage capital. However, where the terms of those agreements are overly generous to the early-stage investor, those agreements can create complexities in future financing rounds, particularly in the form of “liquidation preference overhang”. What is Liquidation Overhang? Liquidation overhang …

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Recoupable Expenses: Hidden Costs That Can Eat Video Game Profits

By / April 3, 2025

Recoupable expenses are a critical aspect of game publishing agreements, often reducing the revenue a developer ultimately receives. These costs, deducted from game sales before royalties are paid, can significantly impact profitability. Understanding what qualifies as a recoupable expense and how to negotiate favorable terms is essential for developers (and publishers) looking to maximize earnings. …

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Lessons to Learn from the FTC Complaint Against Cognosphere and Genshin Impact – Part II: COPPA

By / February 27, 2025

As mentioned in Part I of the this three part blog post on the FTC’s complaint against HoYoverse and Genshin Impact, COPPA applies to sites and services that are either directed toward children under the age of 13 or have actual knowledge that children 13 are providing information online. In Count I of the complaint, …

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Convertible Notes vs SAFEs

By / December 2, 2025

Convertible notes and SAFEs (Simple Agreements for Future Equity) are two common instruments used by startups to raise early-stage capital. While they share similarities, they also have distinct features that may make one more suitable than the other depending on the situation. Here’s a quick comparison to help understand the key differences and why a …

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The Games Industry in 2025: Our Optimistic Perspective

By / January 16, 2025

The past couple of years have been a rollercoaster for the games industry, with significant layoffs and economic challenges dampening spirits. However, 2025 brings a sense of optimism. Many have managed to “survive to 25.” The industry is poised for recovery, with growth opportunities across emerging markets, cultural shifts, and technological advancements. Political uncertainty may …

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Convertible notes are a tool for early-stage fundraising

By / December 2, 2025

Unlike a traditional priced equity round, a convertible note is a type of debt that converts into equity (typically during a future financing round). Essentially, it’s a loan made to a startup by an investor, with the expectation that the loan will convert into shares of the company’s stock at a later date. This instrument …

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Understanding Stock Incentive Plans and Rule 701

By / January 9, 2025

When it comes to employee compensation, companies can offer more than wages and salaries. One of the most popular choices is granting employees equity, giving them a sense of ownership and aligning their interests with the success of the business. For interested companies, one of the best ways to accomplish that goal is through a …

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