My guess is that these smaller companies like platnum and high voltage finance their own games and get them done with any means necessary, as cheaply as possible. They are fine examples that you don't have to spend gazillion dollars on production to make a fun game. Then when theya re done they deliver them to publishers (Sega in both cases).
Sega then takes the game and pays for the printing/packaging, distribution and console licensing. For a game like Conduit, I doubt either side spent more than 15 million combined. So you have 15 million dollars invested with the game being made, packaged, distributed, advertised and sitting on the shelf.
Assuming that the game is sold for 35-40 dollars to retailers, it would be quite easy for them to get their money back if they sell 500,000 copies or so to retailers.
Im really curious what the revenue split would be for publisher/developer situation like Sega - Platnum/High Voltage. 50/50?
