WB Using Game Reviews To Calculate Royalties

Thanks to The Hollywood Reporter for its article discussing Warner Bros. Interactive's decision to use average review scores in calculating the royalty rates videogame makers must pay to WB. The article explains: "Games based on Warner Bros. licenses must achieve at least a 70% rating [calculated via GameRankings.com and similar services], or incur an increase in royalty rates", with WB's Jason Hall commenting: "An escalating royalty rate kicks in to help compensate us for the brand damage... the further away from 70% it gets, the more expensive the royalty rate becomes... If the publisher delivers on what they promised -- to produce a great game -- it's not even an issue." However, Bruno Bonnell, CEO of Atari, makers of Enter The Matrix, which didn't include this contract clause, comments: "We sold four million copies. That's $250 million worldwide... and Warner Bros. would penalize us because we didn't achieve 70%? Are they joking?"

Comments

The fix is in

[TerryAtWork]

or will be, shortly. Any time big bucks depend on some web site operator's opinion, that web site operator is going to get a great offer...

Gotta start a game rating web site.... :-)

Good medicine

[BW_Nuprin]

As someone who has worked on crapped-out shovelware licensed GBA games, I believe this is very good news. Often times the license games skimp on design phase and go straight to development, usually using a cookie-cutter engine and game mechanics from a previous title. With some penalties in place, perhaps companies will spend more time thinking about how they can make "Michigan Frog Racing" fun, or just find something else to do if they can't do that.

Very reasonable

[JMZero]

At one point, "The Matrix Online" was a game license that was very valuable - a marquee game. There was a lot of goodwill out there. "Enter the Matrix" exchanged a lot of that goodwill for money (as did the last two movies).

Now they could have got money out of that franchise with anything from any developer. But if the game was excellent, they would have retained a lot more goodwill - and possibly helped maintain the franchise in the face of the lackluster sequels. That could have been worth much, much more than these sales figures.

Look at the value Ubi Soft has created in the "Prince of Persia" franchise. PoP was dead, no value. Now it has lots, even if Sands of Time didn't sell as well as it should have. Sega is still milking Sonic the Hedgehog on the basis of a couple good games a decade ago.

These things have tremendous, very real value. It makes sense to protect this value via contract - and pegging things to game reviews is as good of an idea as I can think of.

Paying for Quality v. Paying for Reviews

[superultra]

The biggest problem with Hall's manifesto is that he's not paying for quality, he's paying for good reviews. There's a big difference. While there is usually correlation between a truly good game and the reviews, particularly when using meta ranking sites, it doesn't always match up. Take Black & White, for example, which was highly rated by the press. Two years later, B&W was lauded at by the very same magazines for its overwhelming boredom. Or Deus Ex 2, which also received comparetively high scores from the media but among fans and consumers hurt the Ion Storm brand far more than it helped? Good reviews does not always equal quality. More importantly, ti doesn't always equal sales either, and quite practically that's what Jason Hall should be most concerned about. Would more people have bought Enter the Matrix had it been a decent game? Probably. Does Enter the Matrix hurt the next Matrix game? Unarguably. But you can't chart the quality of a game with game reviews alone. Relying on those is too simplistic, and too impractical.

If Hall actually gets to put this into place - which I doubt he will - why wouldn't Developer X unofficially bring on Mr. EGM Reviewer as a "consultant," with the thanks taking the shape of an HDTV? Allowing game reviewers to ultimately dictact the size of multi-thousand dollar royalty paychecks is a big mistake. I read game magazines all the time, and with the rare exception it's pisspoor writing stitlted with poop and boob jokes. I wouldn't trust them with determining my family's income, so why is Jason?