I've heard many excuses from Strategy First why they couldn't pay us at Stardock the hundreds of thousands of dollars in royalties, but never have I heard anything about some rogue third party developer screwing them of $800k or whatever.
I do NOT think Strategy First is a dishonest company. I actually like the people who work there. But Strategy First has a LOT of people that they owe money to. Millions of dollars are owed to various people and companies.
With Galactic Civilizations, Stardock developed the game on its own. It did most of the box design. It did most of the marketing. It handled virtually all the support. It made the demo. It distributed the demo onto sites. It created and maintained the website for the game. It handled the distribution of game updates (including paying for all the bandwidth).
In short, Strategy First's contribution to the success of Galactic Civilizations was minimal IMO. They essentially took our game, put it in a box, and turned it over to Encore to distribute into the stores. And then only have paid a fraction of the royalties that they owe. Which we find pretty maddening considering how much of their job we did for them.
I think they have made a good faith attempt to try to pay us what they can. But at Stardock, we don't mess with royalty money owed to others. When we have collected money that is to be paid as a royalty to a third party, it is seperated from our general fund precisely so that we don't get tempted to spend money that should be reserved for third parties. That's what Strategy First should have done in my opinion. But they didn't.
And Stardock isn't the only ones who were hurt by Strategy First's financial short-falls. And there's no reason to think that the same thing won't happen again.
I just hope the author of Space Empires V isn't choosing publishers for the wrong reasons. If he thinks that Galactic Civilizations was successful thanks to Strategy First, he's wrong IMO.
Galactic Civilizations succeeded because:
(a) It's a good game.
(b) It happened to come out right when Master of Orion 3 came out which was not well received by fans.
(c) It had very good word of mouth
(d) It got very good reviews (which, btw, Stardock was the one who sent the game out to most of the reviewers who reviewed the game)
(e) Its developer provided a year+ of FREE updates to the game to keep it fresh and new.
(f) The distributor, Encore, was able to get it into lots of stores adn thus capitalize and A,B,C,D and E.
That isn't to say that Strategy First won't pay the Space Empires V developer. I have no idea. But if he's counting on them to make Space Empires V a "big hit" then past performance should be considered.
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Brad Wardell
Designer of Galactic Civilizations
http://www.galciv.com
Incidentally, for Galactic Civilizations II we're publishing it ourselves and have had no trouble getting contracts for most of the major retail stores negotiated.