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Aprisaiden said:
NiKKoM said:

lol... that's one bad contract GRIN made with SE... how in the world would one get a 20 million dollar contract and only have in it "pay on delivery"... heck even if I close a contract for 1000 dollar half is paid upfront..

Unfortunatly alot of videogame pulishers like Activision, EA, Square-Enix, etc all use quite dodgy contracts. Often upcoming contracts for games are oral contracts with no formal agreement, developers often need to work on games for a few months before the project is formally accepted, royalty payment timing is based off publisher wants (eg. some like Microsoft often pay upfront based off sales projections others delay for payment for 'x' months to get the numbers in a certain quarter/fiscal year)

 Ofcourse this is all when dealing with "small to mid" range developers, they actually have to nice when dealing with big name developers who get to pick there own project and then pick which publishers to offer it to.

I've heard SE would pay the ammount in installments when milestones were reached. but apparently milestones were never reached at a satisfactory level and SE terminated the contract.

from the video we had:

it seems like a reasonabily good first attempt from the tech demo, so its probable Sqaure were going to terminate the contract before communicating with the studio. i've heard from people that the persons working at the studio knew the end was coming during the FF project. its possible they wouldve gone under even if Sqaure hadnt of canceled the contract.

which is interesting because they might now be slinging mud at SE since SE's reputation at the moment will make that mud really stick!