Game royalties are payments calculated under a contract—not a standard percentage that applies to every developer. The agreement defines what revenue the share is based on, which costs can be deducted, how an advance is repaid, and when the developer gets paid. A storefront’s distribution fee is a separate layer from a publisher’s share.
How does a game royalty get calculated?
A player buys a game or related content, but the sale price is not necessarily the amount divided between the developer and publisher. Taxes, refunds, chargebacks, platform charges and other contractually permitted deductions may be accounted for before the royalty is calculated. The contract defines which receipts count and which deductions are allowed.
That defined amount is the royalty base. A percentage has little meaning without it: a developer’s share of gross receipts can produce a different payment from the same percentage of net receipts after deductions. Contract terms also determine the accounting period and payment timing.
A simplified example
Suppose a contract defines $100 of receipts after specified deductions as the royalty base and gives the developer 60%. The developer’s share for that accounting period would be $60 before any further contract-specific withholding or recoupment. This is illustrative arithmetic, not a typical or recommended deal. If the contract permits more deductions before the base is calculated, the same 60% could yield less.
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What is an advance, and when does recoupment happen?
A publisher that funds development may pay an advance, sometimes in installments tied to milestones. If it is recoupable, the publisher recovers the agreed amount from the revenue specified in the agreement. The contract determines which games or revenue streams count toward repayment and whether the developer receives a share while repayment is underway.
- Share only after recoupment: the developer receives no revenue share until the defined advance has been recovered.
- Share during recoupment: the contract allows the developer and publisher to receive their shares while the advance is still being recovered.
“Recoupable” alone does not answer how much revenue can be used to repay the advance. Check whether recoupment applies across platforms, ports, localizations, downloadable content or related products, and whether costs beyond the advance can also be deducted. Broad deductions from “net revenue” can reduce payments even when the stated developer percentage looks attractive.
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What do published game-publishing figures show?
In a 2020 Game Developer article, lawyer Kellen Voyer reported figures from 30 non-mobile indie game publishing agreements. The sample excluded mobile, porting and localization deals; it describes those agreements, not a current universal benchmark.
| Measure | Reported figure | How to interpret it |
|---|---|---|
| Average advance across deals with and without advances | $318,000 | Average across the 30-agreement sample. |
| Average advance among agreements that included one | $460,000 | Average for the subset with an advance. |
| Average developer/publisher revenue split | 60% / 40% | The article also reports a 71% developer share in no-advance deals and a 55% developer share when averaging deals with an advance. |
| Average agreement term | 6.5 years | Average across the sample. |
| Deals with recoupable advances | 81% | Share of sampled agreements. |
| Deals requiring recoupment before developers received revenue | 42% | Share of sampled agreements. |
| Deals allowing both sides to receive a share during recoupment | 58% | Share of sampled agreements. |
These figures are useful context for what appeared in that limited sample, not a rate to assume in a negotiation. Voyer described developers as facing a “two fold informational disadvantage”: not knowing what key publishing terms mean or what is standard. Understanding the definitions in an offer is more useful than treating a sample average as a target.
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How are platform revenue shares different?
A storefront’s platform-level revenue share concerns distribution through that platform. It does not set the developer’s royalty under a separate publisher agreement. Both layers may affect the economics, and the publisher contract must say how platform receipts and charges feed into its royalty calculation.
| Platform example | Published terms | What the terms do—and do not—tell you |
|---|---|---|
| Epic Games Store | Beginning in 2026, Epic says its $1 million threshold resets for each title on January 1. Its policy provides a 100%/0% share up to $1 million, then the standard 88%/12% split. The threshold is per title and aggregates supported platforms; Epic says agreed recoupable obligations are handled first. | These are Epic platform terms, not a general publisher royalty. Platform policy can change. |
| Kongregate | Its support page, updated March 19, 2026, says approved developers may earn up to 70% revenue share. | The actual rate depends on which revenue-share programs a developer opts into; it is not a fixed rate in the upload agreement. |
| Steam | Steamworks’ publisher resource page discusses services, trade-offs, relationship health, contract terms and account access; it does not set a standard royalty rate. | Publisher selection guidance is not a publisher royalty schedule. |
What should you compare in two publishing offers?
Compare the amount the contract actually pays on, not just the headline percentage. A higher rate may produce a smaller payment if its base is narrower or more costs can be deducted.
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- Royalty base and deductions: Is the share calculated on gross, adjusted gross or net receipts? Which deductions are expressly permitted? Are marketing expenses, overhead or unrelated costs deductible, and who approves them?
- Advance and recoupment: Is there an advance, what milestones trigger installments, and which revenues repay it? Does the developer share revenue during recoupment?
- Scope: Does recoupment or the royalty apply across platforms, ports, localizations, downloadable content or derivative products?
- Accounting and payment: How often are statements issued and payments made? Are returns subject to a holdback? Can the developer inspect records or dispute a statement?
- Rights and duration: Who owns the game IP and controls sequel, merchandising or adaptation rights? What is the term, renewal mechanism, and process for termination or rights reversion?
- Publisher commitments: What services does the publisher agree to provide, and how do those obligations compare with the trade-offs in the agreement?
Steamworks’ publisher resource also emphasizes evaluating the services offered, the trade-offs, the health of the relationship, contract terms and account access. The actual agreement, applicable jurisdiction and business context matter; this checklist is not legal advice.
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