If you’re a game developer wondering “what does a video game publisher do?”, you’re asking one of the most important questions in the industry.
Typically, a publisher funds game development, handles game marketing, deals with the technical aspects of publishing (first party certification, admin, etc.), and receives and pays out the game revenue.
Why is a Video Game Publisher Important?
The relationship between developers and publishers shapes how games get made, marketed, and monetized.
I’ve negotiated dozens of publishing deals for indie studios. I’ve seen great partnerships that launched successful games, and I’ve seen deals that nearly destroyed studios and led to terrible relationships between the developer and publisher.
Understanding what a game publisher actually does – and what they take in return – is essential before you sign anything.
This guide breaks down the publisher’s role from a legal and business perspective, so you know exactly what you’re getting into.
Understanding the Game Publisher vs Developer Relationship
A game developer creates the game. A game publisher funds, markets, and distributes it.
That’s the simple version, but the reality is far more complex.
Game developers are the creative force. They’re the programmers, artists, designers, and producers building the actual game.
Whether it’s a solo indie developer or a team of hundreds, developers focus on creating compelling gameplay, engaging stories, and polished experiences.
Game publishers are the business force. They provide money, marketing expertise, distribution channels, and industry connections. Publishers handle everything that happens outside the development studio – getting the game in front of players and turning it into revenue.
The line between these roles has blurred in recent years. Some developers self-publish through platforms like Steam. Some publishers maintain in-house development teams.
Companies like Nintendo, Sony, and Microsoft act as both publisher and developer for their own titles (and the “first party” platform owner, as well).
But for most video games, especially from indie studios, the relationship is clear: developers make games, publishers sell them.
What Video Game Publishers Actually Do
So what does a video game publisher do, in practical terms? Their role covers several critical areas.
Funding Game Development
Most publishers provide upfront funding for game development. This is often the main reason developers sign with a publisher in the first place.
Creating games costs money – lots of it. Even a modest indie game can easily cost hundreds of thousands of dollars when you factor in salaries, software licenses, and all the other expenses.
Game publishers advance this money to developers. The amount varies wildly based on the game’s scope and the studio’s track record. A proven studio making a sequel to a successful game might receive millions. A first-time developer with just a vertical slice might receive a smaller advance to complete the project.
This funding usually comes in milestones tied to development progress. Publishers pay when the developer hits specific targets – completing the alpha build, finishing beta testing, reaching the release date.
This protects publishers from paying for games that never ship.
Marketing
Marketing is where publishers really earn their keep.
Most developers know how to make great games. Few know how to market them effectively. Publishers (hopefully) bring marketing expertise, relationships with media outlets, and budgets that individual developers can’t match.
A good publisher handles everything from creating trailers and writing press releases, to buying ads and managing social media campaigns. They organize preview events, coordinate reviews, and generate buzz before launch.
For console games, they work with platform holders like Nintendo, Sony, and Microsoft to secure promotional placement, exclusivity deals, and inclusion in streaming and subscription services.
User acquisition is the art and science of finding players who will actually play your game. Publishers use data analytics, market research, and years of experience to identify the right audience.
They know which platforms work for which games, how to price titles for maximum revenue, and when to launch for commercial success.
These are all theoretical, of course. Some publishers fail miserably at these tasks, whether due to inexperience or to misconduct or laziness. That’s why it’s vitally important to know who you’re working with.
Distribution and Platform Relationships
Distribution might sound simple in the digital age, but it’s not.
Getting your game on Steam is relatively easy. Getting prominent placement on Steam is hard.
Getting your game featured in Nintendo’s eShop or Sony’s PlayStation Store requires relationships and negotiating power that most first-time developers don’t have.
Good video game publishers maintain these relationships with platform holders. They know the people making placement decisions. They understand each platform’s submission requirements, technical specs, and certification processes.
For physical releases, they handle manufacturing, warehousing, and retail relationships (or they know who to work with to get it done).
Quality Assurance Testing
Quality assurance testing catches bugs before players do. Publishers typically run extensive QA programs, testing games on multiple platforms, in different regions, with various hardware configurations.
Most large publishers maintain dedicated QA teams or contract with specialized testing companies. They test for crashes, performance issues, localization errors, and compliance with platform requirements.
We all know that missing a major bug can kill a game’s launch, so this matters.
Publishers also coordinate certification with platform holders. Every console game must pass certification testing before release. Good publishers can guide developers through this process, helping fix issues that would cause certification failure.
Localization and International Publishing
Taking a game to international markets requires more than simply translating the text.
Publishers handle localization – adapting games for different languages, cultures, and regions. This includes translation (including adapting the text to local cultural norms and references, where necessary), voice acting in multiple languages, adjusting gameplay for regional preferences, and ensuring compliance with local regulations.
Many games generate significant revenue from international markets. Publishers may have teams or partners in different regions who understand local market conditions. They will hopefully know which games will succeed in Asia versus Europe, how to price for different economies, and how to market across cultural boundaries.
The Financial Reality of Publishing Deals
Let’s talk money, because that’s ultimately what drives these relationships.
How Video Game Publishers Make Money
Video game publishers make money by taking a percentage of game sales.
The specifics will always vary based on the deal structure, but the following setup typically applies:
- First, the publisher retains all revenue from the game until they’ve recouped the money they spent developing, marketing, and publishing the game. Often (and especially in the publisher’s first offer) this is 100% of the revenue. Other times it is something like 80-90%, allowing the developer to keep a small portion of game revenue to support the studio’s activities while waiting for a higher rev share to kick in.
- Next, the publisher and developer settle into a more standard revenue split – this can go from a very publisher-tilted 30/70 split, to the opposite where the developer is receiving 70%. A lot of this depends on how much risk the publisher has taken (meaning how much money is on the line) and how much they are looking to hedge that risk. If the developer is getting millions (or tens of millions) for the game’s development, the publisher is probably going to want to protect themselves by taking more of the upside.
- Many agreements have a tiered revenue share, as well. This means that as the publisher makes more money (often expressed as either a straight dollar amount, or a multiple of their initial development funding), their percentage of revenue share drops and the developer’s increases. This rewards the developer more – with each tier of “success”, the royalty rate gets bigger!
- There can also be structured “bonus” payments when sales thresholds are met, as well.
Publishers also make money from ancillary rights – merchandise, film adaptations, licensing deals. If they own the IP, they control these opportunities and keep most or all of that revenue.
It’s important to negotiate these rights with an eye toward the future and also a realistic view on whether the publisher will actually use these valuable rights.
How Much Does a Publisher Take From a Game?
This is the question every developer wants answered. There’s no standard answer, but here are typical scenarios.
For a traditional publishing deal where the publisher provides significant funding and marketing, expect them to take 50-70% of net revenue until recoupment, then 30-50% thereafter. Net revenue means after the platform (Steam, Sony, etc.) takes their cut, which is usually 30%.
So if your game sells for $20, the platform takes a little more than $6. That leaves $14. The publisher then takes their percentage of that $14. If it’s a 50/50 split, both publisher and developer receive $7. If it’s 70/30 (favoring the publisher), the publisher gets $9.80 and the developer gets $4.20.
Some deals are more favorable to developers. A publisher providing only marketing and distribution services might take 20-30% of revenue (or less, if you’re lucky). A publisher taking full ownership of the IP and providing massive funding might take 80% or more.
The advance matters too. A $500,000 advance with a 70/30 split might be better than a $100,000 advance with a 50/50 split, depending on your game’s sales potential.
The Cost of Not Using a Publisher
Here’s the flip side: self-publishing has its own costs.
You need money for development, marketing budget, time to handle business tasks instead of creating games, and knowledge of the market and distribution channels.
Many developers sign publishing deals not because publishers offer better terms, but because publishers offer accessible funding. If you can’t afford to finish your game otherwise, even a tough publishing deal beats never releasing at all.
Particularly in the time when I’m writing this (late 2025), funding for game development is very hard to come by. So a publishing deal that isn’t optimal can still be better than not being able to make the game.
Do You Need a Publisher for a Video Game?
Not necessarily.
The rise of digital distribution has made self-publishing viable for many studios. Platforms like Steam, the Epic Games Store, and console digital stores allow direct access to customers.
Indie games often succeed without publishers. Small teams can build an audience through social media, reach players through digital stores, and keep a larger share of revenue.
If you have the funding to complete development and the expertise to market effectively, self-publishing might be your best option.
But publishers still often offer real value. Consider a publisher if you need funding to complete development, lack marketing experience or budget, want access to better platform relationships and promotional opportunities, need help with localization and international distribution, or prefer to focus on development while someone else handles business.
The decision isn’t “publisher vs. no publisher.” It’s “does this specific publishing deal make financial and creative sense for this game?”
But it’s important to keep in mind that some publishers add more value than others. A publisher who just takes money off the top while providing minimal support isn’t necessary. A publisher who opens doors you couldn’t open yourself, brings genuine expertise, and invests in your success absolutely can be.
Finding the Right Publisher for Your Game
If you decide to pursue a publisher, finding the right one is crucial. Not all publishers are created equal, and the wrong partner can easily bankrupt a studio or ruin a potentially successful game.
Research Potential Publishers
Start by researching publishers who focus on similar games to yours. Look at their catalog.
- Do they publish games in your genre?
- Are they successful?
- How do they treat developers?
Talk to other developers who have worked with publishers you’re considering. The game development community is surprisingly open about these experiences.
Ask about contract terms, whether the publisher delivered on promises, how disputes were handled, and whether they’d work with that publisher again. They may be limited by confidentiality terms, but any information can help.
Also, check out the Indie Game Business site for great resources, including their massive publisher list.
What to Look for in a Good Publisher
A good publisher brings more than just money.
Look for publishers with a proven track record in your game’s genre, genuine enthusiasm for your project, realistic expectations about sales and development timeline, transparency about contract terms and revenue splits, and respect for your creative vision.
Pay attention to how publishers communicate during the pitch process. If they’re hard to reach or dismissive now, imagine working with them for two years of game development.
Beware the publisher that acts like too much of a good guy – often these “friendly” contracts have lots of hidden red flags, which we’ll cover next.
Understanding the Publishing Contract
This is where having legal counsel becomes essential. Publishing contracts are complex, often running 20-30 pages with dense legal language.
Key terms you need to understand include IP ownership, revenue splits and recoupment terms, milestone payments and what triggers them, territory rights, marketing obligations from both sides, quality assurance responsibilities, termination clauses, and rights to sequels and derivative works.
Never sign a publishing contract without having an attorney review it. The cost of legal review is tiny compared to the cost of a bad deal.
I’ve seen developers lose everything because they didn’t understand what they were signing.
Red Flags to Watch For
Some contract terms should make you consider walking away.
These include publishers demanding:
- IP ownership without compelling compensation
- vague or minimal marketing commitments
- automatic rights to sequels without negotiation
- provisions that let the publisher assign the contract to another company
- recoupment terms that include excessive costs or “overhead”, or vague “other expenses” wording
- lack of audit rights to verify sales and royalties
If a publisher pressures you to sign quickly without time for legal review, that’s another red flag. Legitimate publishers expect developers to have attorneys review contracts and understand that their template will be changed in reasonable ways prior to signing.
You should also be wary of a publisher who is very unresponsive at this early stage. It doesn’t bode well for future communications, like milestone approvals and other important and timely responses.
I’ve written about game publishing agreements more here on Gamesindustry.biz.
The Role of Publishers in Different Game Types
Publisher relationships vary significantly based on game type and budget.
AAA Games and Major Publishers
Major publishers like Microsoft, Sony, and Nintendo work with established studios on large-budget titles involving massive funding. Publishers typically own the IP and take the majority of revenue.
Studios are often working as contractors, building games the publisher owns from day one. The trade-off is stability and resources.
Many studios prefer this “work for hire” type of arrangement, getting paid without bearing financial risk.
Indie Games and Smaller Publishers
Indie game publishers offer more varied deal structures.
Some provide full funding and marketing in exchange for significant revenue share. Others offer deals providing only marketing and distribution for a smaller cut. Still others operate somewhere in between.
The indie publishing space has exploded in recent years, with specialized publishers focusing on specific genres or platforms. This gives developers more options and better terms than were available a decade ago.
You can often find publishers whose interests align closely with your game’s needs.
Mobile Games
Mobile game publishers operate differently. Mobile is a hit-driven market dominated by user acquisition costs.
Publishers focus heavily on marketing analytics and ongoing content development. Mobile deals often include ongoing revenue share, and publishers may want equity in your studio.
There may also be a “trial” period where the publisher tests your game against certain KPIs by spending a small amount of advertising money and seeing how it performs. Then you would transition into a full publishing deal.
What Developers Should Expect From Their Publisher
If you sign with a publisher, you have rights.
Expect clear communication, transparent sales reporting, and actual marketing efforts – not just catalog listings.
Quality assurance should be thorough and professional. Publishers should advocate for your game with platform holders and leverage their relationships for promotional placement.
The best publishing relationships are collaborative, with both parties invested in the game’s success.
When to Walk Away From a Publishing Deal
Sometimes the right answer is to walk away.
If the terms don’t make financial sense, if the publisher can’t articulate value, if you have IP ownership concerns, or if they seem more interested in their plans than your creative vision, find another option.
Even if the vibe is just off, that can be reason enough to leave a deal. Remember that you’ll be working with this publisher for years to come, and trusting them with your financial and creative future (and the future of your game studio).
So it’s important that you’re comfortable with them as a partner on this deal.
A bad publishing deal can be worse than no deal. I’ve represented developers stuck in terrible contracts, watching publishers sit on their IP or fail to market their games.
Trust your instincts. If something feels wrong during negotiations, it probably is.
Frequently Asked Questions
Are game publishers necessary?
Not always. Publishers provide funding, marketing, and distribution. But with platforms like Steam, many indie games self-publish successfully. The question is whether a specific deal benefits your game and your game studio’s goals.
How do game publishers make money?
Publishers take 30-70% of sales revenue. They usually recoup development and marketing costs first, then split ongoing revenue. Publishers also profit from controlling game merchandise and licensing.
What is the difference between a game developer and a game publisher?
Developers create games. Publishers fund, market, and distribute them. Developers typically focus on gameplay. Publishers focus on commercial success and the business side of things. Some companies do both, but many video games involve separate entities doing the different tasks.
Moving Forward With Your Publishing Decision
The question “what does a video game publisher do” doesn’t have a simple answer.
The best publishers provide genuine value – funding, marketing expertise, industry access, and partnership. The worst extract value while providing minimal support.
Understand what publishers offer, evaluate whether you need those services, negotiate favorable terms, and find partners who share your vision.
Before signing any publishing contract, get legal advice. Know what you’re giving up and gaining. The publishing decision shapes your studio’s future.
If you’re negotiating a publishing deal or evaluating options, our firm can help. Contact us to discuss your situation, or set up a consultation call.
