Publishers and crowdfunding
An email from a publisher
Remy opens an email: "We loved Hyper Shards, your space shooter. Want to talk about publishing the sequel?"
A publisher is a company that pays for, markets and helps release games that other studios make. The studio that builds the game is the developer. Many indie hits had a publisher behind them. But a publisher deal is business: both sides expect to earn from the game, and the contract decides who gets what.
How a publisher deal works
- AdvanceMoney paid up front to make the game, usually in chunks as the studio reaches agreed goals called milestones.
- RecoupThe publisher earns its advance back from the game's sales before the studio gets more.
- Revenue shareAfter recoup, sales are split by an agreed share, like 50% each. Every deal is different.
- HelpMarketing, trailers, testing, translations, and contacts at stores and console makers.
Quick check
What does it mean for a publisher to recoup its advance?
- It earns the advance back from the game's sales before the agreed split starts
- The studio pays the advance back from its savings next month
- The publisher doubles the advance when the game launches
Show the answer
It earns the advance back from the game's sales before the agreed split starts
An advance is usually earned back only from sales. If the game sells poorly, the studio usually doesn't repay it from its own pocket. But some contracts require repayment if the game is never delivered, so always check the contract.
What you give up
The money and help come with strings. A publisher may:
- Pay only when each milestone is met.
- Have a say in features, release date and price.
- Ask for rights to sequels, or even own the game's IP (intellectual property: the world, the characters, the name).
- Ask for the advance back if the studio doesn't deliver the game, even though low sales usually don't mean repaying.
Keeping our IP, like Nova and Sprig, matters for the studio's future. A lawyer checks the contract, and an adult signs it for the company.
Recoup maths
1Hyper Shards 2, publisher deal (example)2 3Advance: $60,0004Recoup: publisher keeps all sales5 until $60,000 is repaid6After recoup: 50% studio, 50% publisher7First-year sales: $100,000 (after store fees)
How much does the studio get from first-year sales, on top of the advance it already spent making the game?
- $20,000
- $40,000
- $50,000
Show the answer
$20,000
The first $60,000 of sales repays the advance. The $40,000 left is split 50/50, so the studio gets $20,000 and the publisher gets $20,000 more.
Crowdfunding
Crowdfunding means many fans each chip in a little. On Kickstarter, backers pledge money in exchange for rewards, like the game or a name in the credits.
It is all-or-nothing: if the goal isn't reached by the deadline, nobody is charged. If it is, Kickstarter keeps about 5%, plus 3% to 5% in payment fees, at the time of writing. Then comes delivery risk: backers are owed what was promised, even if the game runs late. Creators must be 18, so a parent runs the campaign with you.
True story: Double Fine Adventure
In February 2012, game designer Tim Schafer and his studio Double Fine asked Kickstarter backers for US$400,000 to make an adventure game. By the deadline on 13 March, 87,142 backers had pledged US$3,336,371, more than eight times the goal.
Rewards were expected around October 2012. The game, Broken Age, came out in two parts, and the first arrived on 28 January 2014, well over a year later.
A campaign can raise far more than its goal, and the promise to backers grows with it.
Source: Kickstarter: Double Fine Adventure, kickstarter.com
Pick the money
We need $40,000 to finish Hyper Shards 2. I want to keep all of the studio and full control of the game. And 3,000 fans on Discord keep asking for it!
Which option fits Kai's goals best?
- A Kickstarter campaign with a $40,000 goal and rewards the fans want
- Selling 20% of the studio to a venture capital firm
- A publisher deal with milestones, a revenue share and a say over the game
Show the answer
A Kickstarter campaign with a $40,000 goal and rewards the fans want
Crowdfunding turns an eager community into funding without selling equity or giving up control. The price is platform fees, an all-or-nothing goal and a promise the studio must deliver.
Four ways to fund a game
- Equity investmentMoney for part of the studio. No repayment, but less ownership and investors to answer to.
- PublisherAn advance plus help, earned back from sales, then a revenue share and some loss of control.
- CrowdfundingMoney from fans for rewards. No ownership lost, but fees, an all-or-nothing goal and a promise to deliver.
- GrantMoney for a project that is never paid back and costs no ownership, but is competitive, with rules and reports.
Bolt says: There is one more way to fund a game: money you never pay back. Next: grants.
Fact-checked 11 October 2026
- Kickstarter fees (United States) kickstarter.com
- Kickstarter: Who can use Kickstarter help.kickstarter.com
- Kickstarter fees: a guide for creators updates.kickstarter.com
- Kickstarter: Double Fine Adventure kickstarter.com
- Double Fine: Broken Age doublefine.com