Royalties for game still in development

Development Platform & Builds
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1

Hello there.

I am the sole proprietor of Not A Company, currently working on Hoverloop.
http://www.not-a-company.com/

We recently had a successful Kickstarter campaign, where we offered different packages. The package where you got the game, was €15. https://www.kickstarter.com/projects/1078815302/hoverloop

How does this work with royalties? As the game still is in full development and will not be fully released untill January 2018 (PC+Xbox One). The Early Access on Steam is scheduled for early July.

Kind regards,

Philippe Mesotten

2

Generally speaking, crowdfunding revenue is considered royalty bearing revenue to the extent that the money gets the user access to the game or some other in-game benefit. To the extent it gets you a thank-you, shirt, soundtrack, poster, etc., it’s not royalty-bearing.

In your case, this is basically a game pre-order, so it’s revenue for your game that’s subject to a royalty even though the game doesn’t come out right away.

3

@atypic thank you for your answer, that’s exactly what I’m looking for!

  • You only have to fill in the royalty forms, after you have a $3000 gross revenue for the game, in a calendar quarter, am I correct in assuming this?
4

On a per-Product basis, that’s correct.

5

Thanks a lot!

6

It’s NOT a game PREORDER. Most of the pledges DO NOT INCLUDE a copy of the product. Only some of them inlclude it. So do you take royalties only from those pledges that get a copy?

7

There would only be a royalty on pledges that get access to the game or some other in-game benefit.