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twesterm on 12 November 2010
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Mad55 said:
twesterm said:
Mad55 said:
Barozi said:
Mad55 said:
mchaza said:

yep they sunk 50 million into it. Now the company is 50 million in debt since it failed so hard 


50 Million?


$100 millons actually

okay LOL i can see im not being taken seriously.


Actually, whatever the number they wouldn't be in debt to EA, they just don't get enough money flow to keep the studio open or see any residuals from game sales.  EA would just simply be out so much money.

ohhh EA publisged it?  and yea i forget the devlopers dont put up most of the money.

Oh yeah, the publisher is the one that generally assumes all the risk and since EA (I think it was EA) can afford that price tag they aren't going in debt over that.

The publisher pays the studio so much money per milestone or whatever the pay period and then it's up to the studio to spend the money (though since it's the publishers money, they generally get to approve the budget).  When the game is released, the publisher makes their money back and then the studio starts receiving money.  And of course all that varies depending on the contract but I believe that's how it generally is.