The CEO of Manor Lords publisher Hooded Horse, Tim Bender, has sparked a debate in the gaming industry by arguing that game agreements often violate fundamental contract principles. In an interview with PC Gamer, Bender emphasized that the way many publishing contracts are structured is unfair to developers, citing an imbalance in risk distribution as the primary issue. He believes that the principles of contract law, which aim to benefit all parties involved, are frequently overlooked.
Bender explained that one of the key principles is that risk should be borne by the party best equipped to handle it. However, in the context of game publishing, this principle is often ignored. Hooded Horse's standard contract with developers, for instance, allocates 65% of revenue to the studio, with the publisher taking a larger share if it has partially funded the game. Additionally, the publisher has no recoup, meaning it doesn't prioritize getting back the money it has spent from revenue.
Bender criticized the practice of publishers recouping their costs, calling it 'fundamentally stupid'. He argued that this approach can hinder the success of games that could have recovered with proper support. Instead, he believes that removing recoup terms would benefit both developers and publishers, as it would incentivize developers to create better games and increase the chances of financial success for all parties involved.
Last year, Hooded Horse made headlines by announcing that it would not work with studios using generative AI, describing the technology as 'cancerous'. This bold statement further highlights Bender's commitment to ethical practices in the gaming industry. The CEO's insights into contract principles and his stance against AI raise thought-provoking questions about the future of game publishing and the importance of fair agreements for the industry's long-term success.
