adminManor Lords publisher contracts have drawn attention after Hooded Horse CEO Tim Bender discussed how publishing agreements can distribute financial risk between publishers and developers. He argues that developers may be disadvantaged when contract terms allow a publisher to recover its costs before the studio receives revenue.
Image credit: Slavic Magic/Hooded Horse
Manor Lords publisher contracts and the allocation of risk
Bender, Hooded Horse’s founder and chief executive, said many game-publishing agreements do not follow sound principles for allocating risk. His view is informed in part by his legal training, where he learned that contract terms should be structured to benefit the parties involved.
One principle he emphasized is that financial risk should generally sit with the party best equipped to manage it. In a publishing relationship, that means considering which party controls the relevant decisions, has the resources to absorb losses, and can provide support if a game performs below expectations.
Practical context: A revenue split and a recoupment clause are separate parts of a publishing deal. Developers should review both, rather than judging an agreement only by the headline percentage.
How Hooded Horse’s standard revenue split works
Hooded Horse says its standard agreement gives the development studio 65% of revenue. The publisher may receive a larger share when it has contributed partial funding to a game. Bender also says the company does not use recoupment terms that put it first in line to recover its spending from revenue.
In deals with recoupment, a publisher may take revenue to repay specified costs before the parties receive their agreed ongoing shares. The precise effect depends on the contract: terms can define which expenses qualify, how they are documented, and when recoupment ends.
Why recoupment can affect a game’s prospects
Bender argues that a difficult launch does not always mean a game has no chance to improve. If revenue is directed first toward recovering a publisher’s costs, a developer may have fewer resources available for updates, promotion, or continued support. He also said that even a game with a reasonable launch could struggle to move beyond a substantial recoupment obligation.
His broader point is that publishers typically depend on successful releases for their returns. In his view, removing recoupment barriers can give studios stronger incentives and more room to develop their games, while increasing the possibility that a title can recover after a slow start.
What developers should check in a publishing agreement
The discussion highlights several issues studios can examine before signing:
- Revenue share: Confirm how the percentage is calculated and whether it changes if the publisher provides funding.
- Recoverable costs: Check which expenses can be deducted and whether there are limits or approval requirements.
- Payment order: Establish when the developer begins receiving its share of revenue.
- Ongoing support: Review what each party is expected to contribute after release, especially if sales are initially modest.
These are general points to review, not a substitute for advice on a specific contract. Bender has also said Hooded Horse would not partner with studios that use generative AI, and has strongly criticized the technology.
Why the discussion matters
Publishing terms can influence how much financial pressure a studio faces after launch and how much revenue remains available to support a game. The debate over Manor Lords publisher contracts therefore goes beyond a single revenue split: it raises questions about recoupment, shared risk, and the resources developers need to continue working on a title.
