KoA: Reckoning - Failed to Meet Sales Expectations, CFO Says
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July 14th, 2012, 03:50
This is kind of odd. In the text it says that "38 Studios gets 30% of "Reckoning" royalties and EA gets the remaining 70% under the terms of their deal."
While this sounds bad, one could assume that the split occurs after the 30m$ development costs are covered, or the 28.7m$ dept to EA is repaid, leaving about 35m$ to divide between EA and 38 Studios. This would actually result in profit for the latter. However, if not the profits were split but rather the total income from sales, before repaying any liabilities, this really is an exceptionally bad deal.
Anyway, I suspect that the underfunded Copernicus MMORPG project and the requirement to hire developers by Rhode Island were the main reasons for failing to survive as a company.
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