This month, attorney Jim Charne's column over at IGDA.org focuses on the question of how developers get paid for the games they make. If you've ever wondered how money flows from your wallet to a developer's bank account, this brief explainer will answer your questions.
Why should the average gamer care how a developer gets paid? Well, for one, an understanding of the economics behind game development helps us become more sophisticated consumers. Part of the critical aversion to Waterworld was the fact that the stinker cost $173 million to make, while part of the reason that the Blair Witch Project earned so many accolades was that film's sub $40,000 budget.
It also helps explain the tension between developers and retail outlets that sell used games as well as the excitement surrounding digital delivery of game content via Steam and Xbox Live.
In short, the structure of payments to developers is a key driver behind a number of decisions that ultimately affect the quality of the product we pop into our consoles and PCs.
[Image credit: from Greg Costikyan's "Death to the Games Industry Part II" piece in the Escapist.]
