Game Development Community

Where do the royalties of a bankrupt game studio goes?

by Kyrah Abattoir · in General Discussion · 06/30/2012 (2:39 pm) · 1 replies

From what I was told, it's common in the industry to go toward a publisher for money in order to develop a game.
The publisher lend money, and the studio repays it with the royalties from the sales of the game.

My question is, if the game studio goes bankrupt, what happens?
I see games being sold that where developped by studios that are long gone. Are those publishers sellings games and pocketing the studio royalties?

#1
07/01/2012 (6:29 am)
Yep, the publisher pockets the cash, they (usually) own the Intellectual Property after all.

Also, the developer doesn't repay the publisher with royalties, instead the publisher takes all the profits and then if there is any royalties or bonus's they give them to the developer.

Bethesda takes all the profits from Fallout: New Vegas, because they payed just for the games development, no extra royalties, even tho Obsidian Entertainment still exists.