Yep. Actually publishers make the most money. They pay developers all they need to make the game. Costs, up front royalties, ect. Then the publisher exclusively makes all the money off sales to retailers.
This is why there are so many conflicts between publishers and developers. Up front its best for a developer of a game to immediately have a publisher tacked on because they'll get the most money out of it with less risk, but then they no longer have control over their project. While then the publisher takes the risk but ultimately gets control and a good chance of making it up in sales. But if a developer hangs onto the project as long as possible without a publisher, they have to pay for most of the costs but have complete control over their project.
