My Lawyer Is Level 8

Turbine sues DDO publisher Atari for $30m

Turbine states the basis of Atari’s failing to promote Stormreach was based on a desire to compete in the same genre, with its own internally-developed D&D MMO. Or as Turbine states in the complaint, Atari sought “to to free itself from its obligations under the contracts in order to clear the way for the launch of its own competing MMO service based on the D&D and Advanced D&D intellectual properties.”

  • Gx1080

    This its the high season for lawsues or something? Anyways, this could come for paranoia fom Turbine or Turbine has a spy inside Atari. Or internal drama completey unrelated, who knows?

  • Wanderingfool

    So two different companies secured the rights to produce D&D-based MMOs? Bwah?

  • http:///dsob.wordpress.com geldonyetich

    To Turbine’s credit, I suppose barely anybody has heard about their attempts to relaunch DDO yet.

    Still, I’d hate to see Cryptic crash and burn because Atari’s getting gouged for 30 million.

  • VorpalK

    I’m fine with Cryptic crashing and burning. They pulled a bait and switch with their lifetime offer for Champions online, and worse they have Bill Roper in charge. Hmm. He ran Hellgate: London, and that was a SMASHING success.

    I’ve got a hell of lot more love for Turbine. I hope they crush Atari.

  • Montague

    Well look what happened with those that lifetime subbed to Hellgate. Maybe Big Bill is trying to do you a favor here.

  • http://www.antipwn.com/blog IainC

    So two different companies secured the rights to produce D&D-based MMOs? Bwah?

    No. Atari owns Wizards of the Coast and thus the AD&D IP. Turbine developed DDO but it’s published by Atari.

    Atari are trying to terminate the contract with Turbine who are claiming that the termination is in bad faith and are suing Atari on those grounds.

  • http://opensourcedesigner.org DrewC

    I like Cryptic, I have friends there, and I think they make some really fine products. However, I have a lot of sympathy for Turbine on this one, and on the surface it sure looks like they have a case. Their publisher stops supporting their product, then supports (or funds, or what, I don’t know) the development of a product using the same license at another studio, all the while asking Turbine to continue to put development resources (read $$$) into improving DDO.

    Obviously the devil’s in the details, but I don’t think they’re going to get laughed out of court. On the surface, Atari’s behavior looks like bad faith negotiation. If you’ve got partner A developing a product for your IP, and partner B developing a competing product for the same IP, particularly without partner A’s knowledge… It doesn’t look good.

  • Montague

    “So two different companies secured the rights to produce D&D-based MMOs? Bwah?

    No. Atari owns Wizards of the Coast and thus the AD&D IP. Turbine developed DDO but it’s published by Atari.

    Atari are trying to terminate the contract with Turbine who are claiming that the termination is in bad faith and are suing Atari on those grounds.”

    ATARI DOES NOT OWN D&D, HASBRO DOES.

  • Montague

    Sorry about the cruise control.

  • dartwick

    Superficially it looks like Turbine has a point.

    I hope the free DDO is still happening. Its not an MMO but its a great game to play with friends.

  • http://www.arksark.org/blog/ Arkenor

    “I’m fine with Cryptic crashing and burning. They pulled a bait and switch with their lifetime offer for Champions online, and worse they have Bill Roper in charge. Hmm. He ran Hellgate: London, and that was a SMASHING success.

    I’ve got a hell of lot more love for Turbine. I hope they crush Atari.”

    1. The outcry over Cryptic having a limited number of lifetime accounts was almost entirely manufactured. That people would threaten to boycott a game because they couldn’t get a lifetime account for it makes my brain hurt.

    2. Cryptic gave in, and made more lifetime subscriptions available.

    3. The folks at Cryptic have nothing to do with the dispute between Turbine and Atari, and there is no just reason why they should suffer for it.

  • JuJutsu

    “3. The folks at Cryptic have nothing to do with the dispute between Turbine and Atari, and there is no just reason why they should suffer for it.”

    Since life is required to be fair they should be fine.

  • http://rog.gameslate.com/ Rog

    Some parts that are not inherently obvious:

    Turbine wanted to switch DDO from subscription to F2P and their D&D license didn’t cover the change. They renegotiated with Atari and the end result was the license was no longer exclusive.

    Atari is also not the owner of the license, they are sublicensing, so given that they also pay licensing fees, it starts to get a bit complex. The good faith parts start to become not so cut-and-dried given the obligations to the license that both companies have.

    I’m at a loss to decide which company is being more evil here: The one that’s trying to milk as much as they can out of sub-licensing, or the one that’s trying to hold a court of public opinion to push a settlement.

    Who knows, maybe Wizard’s of the Coast will decide all of the shenanigans are detrimental to the value of the D&D license and yank it away from both of them. Unlikely, but I’d probably applaud if they did.

  • Gx1080

    @JuJutsu

    Life isnt requiered to be fair. Sorry.

    Hmm. Atari already published D&D: Tactics for PSP without help of Turbine a couple years ago. So from that they can say that they can get the license from Hasbro and publish whatever the fuck they want to (assuming that it pleases the Hasbro overlords, of course).

    Besides, Turbine answer to the DDO suckiness was to go freemium. That game its another “non-success” because 1)Their combat system ignored what D&D fans wanted (Read: Slow-paced) 2)Making crafted items more powerful than everything else, hence killing the motivation for getting into dungeons and 3)Forcing grouping.

    D&D its a niche per se. A game based in that license it wasnt going to be as popular as 3-movies LOTRO. But those 3 things killed the game for the D&D fans because: It wasnt good enough for charging 15$ a month from their players.

    Until there, its entirely Turbine’s fault.

    About Atari(who isnt a paragon of virtue), expending money for promoting the fail, which isnt going to generate more money isnt the most attractive thing to do for a company that, like all the others, has a bottom end. The problem is that they signed a contract and hence they are legally obligated to promote the fail, no matter how little the profit is.

    And other thing, going behind Turbine’s back to get an MMO developing team that can actually dedicate enough resources to a D&D MMO (not having anything else to do) or creating their own, while AT THE SAME TIME getting their portion, no matter how small of the DDO cake…its a dickish and illegal move.

    tl,dr: Both companies are in the wrong. Hence, the result will come from the best lawyers, as always.

    Any opinions would be appreciated (It sucks creating a text wall if people ignores it).

  • dartwick

    I played DDO – I wouldnt say everyone agreed with your pronouncement that they wanted slow paced combat.
    I think youre telling us what you and your friends wanted.

  • Gx1080

    Alright, not slow paced combat, just combat that isnt twitch based like an FPS (Who do it better). Besides Points 1 and 3 still stand.

  • http://wowpanda.blogspot.com wowpanda

    This is just one of life’s hard problems. Sometimes I wish life is like Math or computer system, everything can be well defined. But then it will be boring…

  • Brent Michael Krupp

    Yeah, DDO was a steaming pile of crap and a total waste of the D&D license so it’s hard to have any actual sympathy for Turbine. I mean, seriously, MMOs are inspired by MUDs which were inspired by D&D… so you’d think maybe a D&D MMO could manage not to stink.

  • Freakazoid

    @Gx1080

    I disagree on Cryptic having the resources to get both STO and a new D&D MMO off the ground. They barely got CO in the thin frame it’s in now. The only thing going for it is the character creator. The fact that they were offering closed beta access to STO if you bought a lifetime sub speaks volumes as to how little they care about CO’s long term success.

  • Ibn

    I have seen both companies do sketchy things. I doubt it’s as cut and dried as one company being in the right and the other company being in the wrong. Typically in situations like these both companies are simply trying to get the best possible outcome for their own stakeholders and they don’t really care what happens to the other partner in the deal.

  • http://www.antipwn.com/blog/ IainC

    @Montague

    Infogrames bought Hasbro and then rebranded itself to Atari (who they had bought previously). So Atari owns Hasbro, who own WotC.

  • http://rog.gameslate.com/ Rog

    @IainC: I think you’re confusing Hasbro Interactive with Hasbro.

  • Jupp

    Rog got it right. Hasbro Interactive is just the company that currently owns the license to create computer games and interactive media under the IP of Dungeons and Dragons. But the rights to D&D as an IP still belong to Hasbro. The license to make such titles runs out in 2015 I think. At that point Hasbro could give the license to someone else.

  • Tem

    The Eberron setting killed my interest in DDO. If I wanted to play Steampunk, I’d play Steampunk. Had it been set in Forgotten Realms I could have overlooked its other flaws. So, I guess I’m ambivalent at best.

  • Jerid

    People really should read the court filing before forming an opinion:
    http://www.courthousenews.com/2009/08/26/Atari.pdf

    It’s not total legalease gibberish and easy enough for a layman to actually make sense of.
    Admitadly it’s only Turbine’s side of the argument, but from the looks of it, a lot of people on the DDO forums that were ready to burn Turbine in effigy are rallyinng to them now.
    Definately will be interesting to see Atari’s response.

  • fatbutt

    Don’t have anything to say about the lawsuit, but…

    Gx1080: I haven’t tried DDO yet, but your examples of game-killing things actually make me want to play it. :/

  • Khoram

    Gx1080: I think you’re way off on your assessment of why DDO failed initially. Everyone I talked to that played it LOVED the combat. The main problems were these:
    1) not enough content at launch. Level cap was 10, and to get there you had to grind the same dungeons over and over again. If they had randomized the trap layout or had some form of randomness to them that would have helped, but they didn’t.
    2) Setting. First, they used the Eberron setting, which was only mildly liked in the first place, then they used a backwater portion of the setting that was completely undeveloped, then they limited it to just a single city with a couple small outdoor locations near. Epic Fail.
    3) Grouping. At launch, once past the newbie harbor, you had to group for everything, there was nothing you could do solo to kill time. Also, the game screamed to be played best by having a regular gaming group (ie friends, rather than PUGs) do all the content together, and that’s pretty hard to pull off, especially when there’s nothing else to do while you waited to see if your friends would show up.
    4) Whoever was responsible (Turbine, Atari, whatever) failed to promote and support the game big time. I remember when the game was first announced, there was a minor splash and it seemed like, hey, wow, those Turbine guys got a major license. Then just after that, they got the license to the (bigger) LotR license, and it seemed like they just yanked all their creative team off D&D to work on LotR, and DDO suffered for it. It became the MMO that time forgot.

  • Zuzax

    I can see how Turbine could take the high moral ground here. It’s not like Turbine has a long history of neglecting their own IP until it dies or anything… *snicker*

  • http://dsob.wordpress.com geldonyetich

    (Ay, curse you, spam filter. Here’s the short version.)

    Re: Champions Online

    1. I think the people who complained about the discounted offers expliring had pretty good purchase to complain on the grounds that they received an email about “limited time” offer that suddenly turned into a “limited number” offer. It was probably just enough legal purchase that Cryptic decided to re-open the offer in unlimited numbers until Aug 31st, just in case.

    2. It does worry me a bit that Bill Roper has apparently been handed the design reigns for Champions Online.

    Long ago, Champions Online was based more on the Champions RPG system in that you had one central pool to purchase anything you want from: powers, advantages for those powers, or stat-boosting packages. Apparently, judging by Jackalope’s last dev blog (you can find on the appropriate section of the Champions Online website) this was boring.

    Bill Roper was likely called in to rectify this situation, and to these ends he shoehorned in the system we see now. Three different power points: powers, advantages, statistics — all earned depending on what level you’re at. Powers are now on “tiers” which mean you either have to get sufficient level or purchase sufficient powers from the same category to earn the right to take.

    I don’t like either change, I think they hurt the game’s overall flexibility, and if they were going to fix the game’s apparent boredom there was probably other things they could have done.

    Nonetheless, I’m confident enough that they’ll eventually turn things around as to buy the box and a 6-month discounted subscription. It does rankle a bit, however, that I’ll apparently have to wait until Sept 1st to play the game because a Direct2Drive pre-order isn’t good enough for the pre-order head start. Has any game ever done that before?

    Champions Online is a very *pretty* game, and considering the non-gamers severely outnumber the gamers in people who are playing games these days, it could very well be that Champions Online is a smashing success.

  • Mandella

    Yeah. It was just that near twitch based combat that kept me and my friends playing it long after we’d exhausted the content. It was one of the *good* things about it, and set it off from other MMOs.

  • http://www.gawaintheblind.com GTB

    DDO was crap when it was released. It operates on a guildwards instance/hub system, which imo doesn’t actually count as an mmo in the first place, just a multiplayer game with visual lobbies. It also uses one of the worst campaign settings in the history of D&D.

    When DDO dies, it won’t be from lack of advertising.

  • Avecrien

    There’s a Dungeons and Dragons MMO? I remember how fast it seemed to slip after release. I’m surprised it’s still in operation at all. I would be interested in knowing how the F2P change would enhance their revenue.

    I consider open betas before launch the best way to get me or the people I know to play that game when it releases. So I’m very happy I got to play Champions. I will not be paying for Champions, but now I won’t begrudge them any cost for me to find that out.( I still looked for and submitted bug reports)

    I heard a few people saying they’d bought lifetime subs before ever playing the game. That scares me. I suspect that will give some a feeling of license to be very mean in the future.

  • Sullee

    The thing for me about this topic is how subservient to a license games are now. I look at DDO and think Turbine should get credit for a lot of good things but honestly the license killed it for me.

    I know a lot of you damn kids like new d&d but I think anything post early Gygax TSR sucks ass. And not just a little. That crap with feats and bs isn’t d&d neither does it translate to an MMO very well. I think Turbine did a great job on tough decisions where they could but it would have been a better game if they didn’t have to make them because of the license in the first place.

    The proof is in the play. Everyone seems to think they need the marketing power of a huge license to do well despite all the evidence to the contrary. And that marketing often comes at the cost of design too. Big licenses are a red flag for me as a gamer.. the last thing I want is devs trying to convert IP from some other media.. games are hard enough as it is.

  • Foamy Squirrel

    Sullee, I’ve actually seen similar sentiments a fair bit. But honestly, the rules for Gygax era D&D were entirely arbitrary and not coherent at all. Armor that starts at 10, crosses 0 at arbitrary “Plate and Shield” and then goes into unlimited negative quantities? Psionics which anyone can have at lvl 1 and can give powers usually limited to level 15+? Only humans can dualclass and only non-humans can multiclass? The saving throw system made no sense and don’t even get me started on the “Strength 18/%” rules.

    I don’t care how much nostalgia you have, it’s Gygax era rules that suck ass. d20 was the best thing that happened to the game.

  • JuJutsu

    “d20 was the best thing that happened to the game.”

    Yes.

  • Brent Michael Krupp

    “crosses 0 at arbitrary “Plate and Shield””? Plate and shield was AC 2. Every true D&D fanboy knows that. Sheesh, kids today!

    But yeah, original D&D and AD&D were pretty silly rulesets.

  • Foamy Squirrel

    Full Plate counts as plate!

  • gyrus

    Okay, I have read the filing and did a summary on it in the Pub at MMORPG.com for those who thought “tl;dr”.
    The upshot of Turbine’s case is this:
    1a/ Turbine allege that Atari did not market or distribute the game properly.
    1b/ Atari more or less admitted this by allowing Turbine to take over some of Atari’s roles in this respect (there was a contract amendment – read the filing)
    2a/ Turbine allege that Atari failed to pay them all the royalties they were owed from Atari sales of DDO:Stormreach.
    2b/ Atari more or less admitted this too and a ‘payment plan’ was established which Atari then defaulted on.
    {Note: Both these things will have a paper trail which Turbine should be able to produce in court}
    3a/ Turbine approached Atari with the F2P scheme (DDO:Unlimited) which Atari then negotiated, agreed to and accepted ‘future payments’ for (as good faith payments)
    3b/ (Alleged) Atari then refused to honor parts of that agreement and attempted to break that agreement almost at once.

    3a & 3b are important. Atari did not have to agree to any amendments.
    If Atari wanted out of the deal then when Turbine approached them with the F2P idea they had the opportunity then to say “No. DDO:Stormreach is not what we hoped for and we will not continue to support it beyond our contractual obligations. If it fails… too bad. If you (Turbine) want out then we will let you out. Otherwise, it stays as it is.”
    If Turbine had pulled out then Atari would have been free to produce their own DDO game.
    But they didn’t do that. They negotiated a deal while doing completely the opposite behind Tubine’s back (if what Turbine says is true?)
    That is very bad business practice, if not fraud.
    If Turbine can prove any part of that then who will do business with Atari in future?

    As for Cryptic and Champions Online.
    It’s ‘short term fun’. It will have trouble retaining subs beyond 2-3 months because players will have ‘finished’ the game.
    Not that this is a bad thing… but with a subscription based model it may prove not very profitable and will have trouble maintaining a community.
    Not that I think the game will collapse – I just think there will be a high player turnover. New players will probably replace players leaving (the game is fun after all) but the population will not grow like an MMO should.
    I would suggest they might be better off with a hybrid billing model like KingsIsle use.

  • gyrus

    Oh… forgot to mention.

    One of the things that could come out of this is some kind of Benchmarking for Publishers with regard to Distribution and Marketing?
    I would have thought this would have been included in contracts of this type because I cannot believe any Developer would work for years on a title and then hand it to a third party and say “You market and distribute it…kthx bye.” Particularly when your income and Return on Investment depends entirely on sales at that point?
    But, what happened to FLS with regard to SOE/Platform Publishing and the European sales fiasco makes me think maybe it really is left up to the fate of the gods and the Publishing house?

  • Foamy Squirrel

    @gyrus – I’m not sure if it’s possible to benchmark these things, at least in a way that is valid. The closest you’ll get is something along the lines of “We aim to go after X markets” and an advance, because there are far too many variables (everything from consumers hating the game, changes in market trends, retailers not giving it premium shelf space, disruptive technologies, websites refusing to host your trailers, governments passing new legislation etc.) to shoot you in the foot. Even if you could specify benchmarks in the original distribution agreement, the amount of time passing gives publishers sufficient grounds to say “The market conditions on which the contract were based have changed”.

  • gyrus

    It is possible to benchmark anything. I have been involved in both primary resources and construction and things change lots all the time but you can still benchmark if you are realistic.
    Variations on contracts are commonplace but targets are still put in place and (mostly) met – even in the face of huge changes in conditions.

    In this case you could say something like:
    “At release a total of not less than 100,000 units will be made available for sale in Europe;
    Not less than 25,000 in the UK (in English), 20,000 in France (in French), 20,000 in Germany (in German) and 10,000 in Spain (in Spanish).
    Of which, no less than 20% of the UK allotment are to be offered for sale via retail outlets as per … ” etc.
    “Marketing: Not less than 2 x A4 (Full Page) adverts to be run in local Computer magazines with a circulation of greater than 100,000 as per…. …to a value of…”
    “Store displays are to include a display stand as per specification…”

    Now your point about things changing is fair – but again you can write this into a contract.

    For example:
    “If suitable advertising cannot be obtained then total advertising to the value of up to US$20,000 shall be obtained in appropriate form as agreed by both parties…”

    And there you have a contract agreement specifying what will be made available for sale at a minimum you can also specify at what point in sales print runs will be ordered for additional units etc.

    Contracts can be written to protect both parties too.
    So, if you have a Developer that wants 1,000,000 units distributed and a Publisher who doesn’t think it will sell then you can put in clauses that basically say ‘Okay we’ll do it your way… but if it doesn’t work then you pay for it.’
    (A form of vanity publishing)

    When a Developer finds themselves in the situation that FLS did with SOE/Platform Publishing when on the release day they cannot even say where the game is available and months later the best they can say is ‘we are pretty sure the game was released in Spain’ then something is wrong.
    At the very least there should be records of print runs available showing how many units were produced and shipped.

    In this case, I would expect Atari to be able to show up in court and say exactly how many units were made available for sale and exactly what percentage sold.
    I guess we may be about to see how well the Computer Games Publishers and Distributers manage their business?

  • Dreel

    @Avecrien
    I would be interested in knowing how the F2P change would enhance their revenue.

    I don’t know how much you know about the gameplay of DDO, but basically there’s X number of instanced adventures, split across the level distribution.

    What the F2P changes are doing is making a percentage of those instanced adventures available free of charge, with the option to buy additional adventures with micropayments. As you level up the amount of free adventures becomes smaller. They also added other things in the micropayment store, some classes and races (Monk, Drow, etc), mana pots, xp pots, etc.

    Or you sign up for the tradtional subscription based payment plan and have access to every adventure, class, and race (Drow can be unlocked or purchased), and get like 500 “points” each month to buy stuff in the store.

    So the hope seems to be, attract new customers by offering the game as F2P and then covert them into subscribing customers. For existing customers, not much changes other than the ability to purchase the utility items in the store.

    We’ll see if it works. As a current subscriber, I’m not holding my breath expecting masses of new players to show up.

  • Avecrien

    Thanks. I did read about how it works for DDO, but what I’m currently trying to get my head around( with the industry as a whole) is how many potential customers respond to this method of gradually becoming a subscriber in a F2P.
    I created a FreeRealms character and ran around for a few hours last week. I found the style and the graphics to be superior to Champions and it was much more responsive to the player, but I didnt really see any other players and nothing ever made me want to pay money for something I didnt have access to.

    I think that a F2P introduction is more or less equivalent to an on-demand free trial, but with reduced playability. Maybe it’s my perspective that gives me a bias against the F2P style or maybe it’s that not experiencing the premium content makes it easier for me to not desire it. I do usually find free trials persuasive(and open betas!)

  • Sullee

    @Foamy, You can choose whichever rules you prefer. The original rules were merely guidelines and not ammo for rules lawyer players like the current ones are. We’ll have to agree to disagree here and it is off-topic anyway.

    A popular license brings a lot of baggage. It isn’t just the design constraints of being true to the license it is inevitably failing to meet diverse expectations. Is that really worth the marketing bump?

  • UnSub

    @Sullee: I think the people who earn a living off the sale of D&D materials think it is worth the marketing bump – back when I used to visit it, my local nerd store’s best financial years were whenever D&D got a new update. 3rd Ed, then 3.5 Ed, now 4th Ed – every major D&D book keeps helps keep their doors open.

    @gyrus: I agree on that, but you’ve outlined something that is probably much more sophisticated than a lot development studios think about. For someone like FLS, I’m sure signing on to SOE saw them happy that a major publisher was going to look after the marketing and they weren’t going to have worry about it.

    For some studios, trying to get a publisher to actually put in writing what marketing activities they might do – potentially years in advance of release for MMOs – would probably make them untouchable. Unless your development studio has a lot of market power based on their history (and I’d say that Turbine doesn’t), studios usually have to dance to whatever beat their publisher put out for them.

  • gyrus

    [i]… you’ve outlined something that is probably much more sophisticated than a lot development studios think about. [/i]
    Yes. And don’t you think that is very big part of the problem?
    You send 3 years+ and multi million dollars developing a product without actually thinking about how (and where) you are going to market it?
    What you projected sales are?
    This is part of your business plan and I know companies MMO companies do these.

    [i]For someone like FLS, I’m sure signing on to SOE saw them happy that a major publisher was going to look after the marketing and they weren’t going to have worry about it.[/i]
    FLS said at the time that SOE was not their only option.
    And yes, I am sure they were very happy that they weren’t going to have to worry about it… only they did end up having to worry about it. In fact IIRC there were times they had to step in and do it themselves anyway.
    So, why weren’t there clauses in the contract to penalize SOE for non performance?
    Did the Spanish release ever take place? How many units were sold?
    How many potential customers were ‘lost’ because SOE could not get their act together?

    [i]For some studios, trying to get a publisher to actually put in writing what marketing activities they might do – potentially years in advance of release for MMOs – would probably make them untouchable.[/i]
    So again, you are spending millions on development and then you just leave your marketing and sales up to a third party without even so much as a real business plan?
    What I proposed above could be difficult to ‘nut out’ sure. You would probably need to get a couple of lawyers on to it and really sit down and think about it.
    It might cost in the order of $100,000 to do that.
    $100,000 to protect your investment on a $50,000,000 project?

    [i]Unless your development studio has a lot of market power based on their history (and I’d say that Turbine doesn’t), studios usually have to dance to whatever beat their publisher put out for them.[/i]
    And so we end up with Turbine vs Atari.
    Did Atari set out to destroy DDO:Stormreach by just not bothering to market it?
    That will probably be one of the issues raised in court.
    If Atari had a marketing plan, and could show in court that they met the benchmarks set prior to release and agreed by Turbine then they probably wouldn’t have an issue. But if there is no plan then Atari are going to have to prove that they gave the product an equivalent effort in comparison to their outer products and compared to other MMOs from other companies.

  • Foamy Squirrel

    I’m still not convinced that benchmarking in branded goods, especially several years out from release, is in any way helpful.
    For example, twitter was pretty much a non-event 3 years ago but you’d almost certainly want it included in any marketing campaign these days. Similarly roll-over ads were huge a year or so ago but everyone hated them so much for expanding over the content that they actually came to view that they’ve been cut back a bit.
    I just think the market is far too dynamic to warrant anything more than a “We’ll know bad faith marketing when we see it” clause, otherwise you end up doing inefficient activities because it was written into the contract years ago.

  • gyrus

    Like I say, with a bit of thought you can factor this in.

    Most products (MMOs) have a ‘Beta’ prior to launch now.
    You could factor Beta Feedback and turnover into your Marketing and Distribution contract.
    It can be done. It’s just a matter of having the will to do it.
    Arguments about a dynamic / variable market don’t sway me because the whole industry could be wiped out tomorrow by a new trend, new technology, or a new IO device.
    I mean, a decent voice recognition interface could change the face of computing at any time – does that stop people developing MMOs because “what if?”

    In any case, a drastic change is what contract amendments are for – which kind of brings us full circle.

  • UnSub

    Gyrus, I agree with you, but from a dev studio point of view you don’t know what you don’t know. If a big publisher comes along and says, “Don’t worry about the marketing, we’ll look after it and it will be international” you’ll probably let them look after it while you do the hard work in getting the game out.

    Studios don’t have a lot of power in these relationships. Often they go hat in hand to a publisher to obtain funding to keep the lights on so there is a chance they’ll make some money back. There might be studios who have the ability to scotch a deal if they don’t like the marketing plan, but there are plenty more out there who will worry about the bank foreclosing on their mortgage tomorrow if they don’t sign the deal.

    Even after signing the contract, there is no guarantee of a publisher maintaining it. NCsoft cancelled their involvement in a Spacetime Studio title so that studio had to search around for someone else (who they found, but after several months of laying people off). There have also been entire studios destroyed in the stroke of a publisher pen as they lose all their development licenses that were funded as part of the contract.

    For Turbine vs Atari, Turbine obviously has the cash to fund the lawsuit. Would FLS actually have enough capital to afford to go down this path should they think SOE reneged on their agreement? Because that’s the other challenge – although a company might have engaged in some questionable behaviour, you still have to be able to afford to take them to court on it.

  • gyrus

    UnSub, I see what you are saying and agree to a point.
    But maybe this is a big part of the problem – there should be very definite goals for a Publisher / Distributer to meet.
    And, in the interest of both parties those goals should be written down. No contract is ever written in stone.
    Publishers could easily protect themselves by have clauses allowing them to back out if the game does not meet certain standards or receive positive feedback from a test group (Beta Testers).
    More and more it sounds like many of these deals are very ‘one way’ and that sort of defeats the purpose of a contract which is supposed to be a ‘meeting of the minds’.
    It boggles my mind that any company would enter into a contract on which their lively hood and return on investment is entirely in the hands of another company while they have no standard of commitment in return?
    In fact, if I was to enter that sort of deal it would be illegal, because as a CEO of my own company I am legally obliged to ‘act in the best interest of the company’.
    Entering a contract like that would be grounds to have my company seized and placed under administrative control.