It is now on the news that Sony Entertainment had lost the deal with Playdead, the Danish studio responsible for the independent video game adventure Limbo. The company has lost the opportunity to launch the video game that sold millions on PSN after it has demanded IP rights as part of the deal.
Pete Smith, executive producer of Sony Computer Entertainment has admitted that their company met with Playdead to talk about the exclusive release of Limbo on PSN but lost to Microsoft after demanding IP rights as part of their contract. Smith has revealed the outcome of the meeting during the Brighton Develop Conference at the thorough breakdown about the don’ts and do’s of pitching video games to its publishers. Pete mentioned that the company had issues concerning their deal with Playdead due to IP rights. After the incident, the Danish studio has signed an agreement with Microsoft that led to the July 2010 release of their game on the Xbox LIVE and on the PSN after a year.
The admission of Pete Smith about what happened to their deal with Playdead was in contrast with the statement he provided earlier during the conference about IP advice. He said that there are lots of benefits and advantages if you keep it and when you give it up.
Publishers of video games will commit to merchandizing and marketing of their products if they have sole ownership of the IP.
Pete continued that all they want is protection and developers do not create a video game, complete it and then go to their rivals, and will depend on the case on what they talking about IPs.
During the first month of the Limbo on XLBA, the video game has already sold about 300,000 copies and more than 500,000 copies by 2010’s end. In 2011, the independent adventure video game has already surpassed the 1 million mark for the copies sold making it one of the most successful independently made video games.
Limbo has also sold well enough on PSN, making it PSN’s top-selling video game (third party) in 2011. But it would be much better if Sony has got there ahead of their rivals first.
Yet there’s logic to the advice of Pete Smith, and earlier during his talk, Smith provided the example where an unnamed video game developer who wants the moon as part of their deal if they give the publishing rights. Smith went on to continue that the developer has pitched good video games, and wanted the IP for themselves, have a large development cost, bigger royalties, guaranteed sales for every unit as well as marketing spend.
The talk provided by Smith during the Develop Conference was indeed full of great pieces of advice for video games developers out there, especially those who are just stating their initial pitch. Despite what happened to the deal with Playdead, Pete still looked at the brighter side of it and has made it a good example for those video game developers.