The video games industry is notorious for the asymmetry that exists between different parties in contract negotiations. Back when I first started in the early 00s, I was told that certain publishers liked to push out their "bonehead" agreements first to see if they could get a deal that honestly, no one sane would sign. Recently, I ran into a similar situation and the expression, “there’s a sucker born every minute,” came to mind and got me thinking why there are some that think signing anything is better than nothing and gleefully push subpar agreements onto others.
Context is key
If you're desperate for money or don’t believe you can get better than by all means, consider a deal as is, but I sincerely doubt much would merit taking an agreement that isn’t in anyone’s interests. Yes, you read it right, even a partial deal is still a loss for everyone involved and here’s why.
Agreements are only as good as the people who sign them and moreover the spirit in which made. The moment when either party realizes they’ve been taken to the cleaners, everything changes.
Show me a person gleeful of taking advantage of a situation, and I’ll highlight the fools shortsightedness and soon to be heartbreak when things inevitably fall apart.
Corporate blah-blah
In creative endeavors, especially video games, poor contracts line the road of delayed releases and slums of broken studios.
Before the corporate folks scream out in laughter let me get something clear, risk mitigation/shareholder value go hand and hand with equitable agreements. Lacking the will or competence to negotiate internally isn’t an excuse for pushing templates forward- especially if you want great work.
I don’t doubt the honor that comes from working with any great brand, but let’s not confuse this with the lines one gives to their first love.
The fact is it’s a business deal and protecting downside isn’t just a nice to have it’s downright essential for all parties.
Surprise, commonsense
The good news is that none of this is impossible to solve so as long as both are willing to seek compromise and understand things change.
Evolution leads to revolution and in industries as fast paced and ever growing like gaming, ensuring you’re realistic and up to date comes down to a few simple truths:
Quality of the delivery and experience come first
Understand the context your partner is operating in
Create a spirit of partnership by establishing win-win solutions
Some readers may not believe they can make change happen in their organization or that their partners genuinely don’t want them to succeed. In both cases, I would argue that it is possible and you need to possess the will to seek the required change.
In my 18+ years of dealmaking in video games, film, and advertising I’ve only encountered one instance of inability, but frank discussion and hard truths overcame even that. In the end, we all wanted the same thing and ultimately became a team.
Nothing great comes from taking advantage of someone in creative endeavors let alone in the video games industry. Finding that way forwards sets the stage for greatness and long-term success. After all, shipping a great product requires a great beginning, and that starts with a good agreement in place.
Would you like to receive more stories or information like this? Sign-up for my newsletter by clicking here.