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Spire_VII said:

"We're looking for a number of great games, and in return for exclusivity we'll match your development budget with guaranteed royalties," he said.

Lol.. this is business speak and would require exact reading of the contract to really find out what it means. From my experience this probalby means that you get back a maximum of your development costs through royalties. It does NOT mean that you get $10mio if you create a game that has cost you $10mio to produce. If it is a shitty game that sells only 10 copies, you get the royalties for 10 copies.. If it turns out to be the biggest game in history, you get a maximum of $10mio back even if you sell a trillion copies (+ probably further royalties).