Game royalties are payments calculated under a contract, not a standard percentage paid to every developer. The agreement sets the revenue base, permitted deductions, each party’s share, and how any advance is recouped. A storefront’s distribution fee or revenue split is a separate layer from a publisher’s share.
What does a game royalty percentage apply to?
A royalty is a share of a defined amount of revenue. The percentage alone tells you little: the contract must say whether it applies to gross receipts, adjusted gross receipts, net receipts, or another defined base, and which deductions are taken first.
For 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. If the contract permits more deductions before calculating the base, the same 60% rate can yield a smaller payment. This is illustrative arithmetic, not a claim about a typical deal.
Depending on the contract, the calculation may account for taxes, refunds, chargebacks, platform charges, or other permitted costs. The agreement determines which of these reduce the base and when they are counted; “net revenue” is not self-defining.
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How do an advance and recoupment affect payment?
A publisher that funds development may pay an advance, often in installments tied to milestones. If it is recoupable, the publisher recovers the agreed amount from the receipts specified in the contract. The agreement determines whether the developer receives a revenue share while recoupment is underway or only after the advance has been recovered.
Recoupment scope matters as much as the advance amount. A contract may specify whether receipts from different platforms, ports, localizations, downloadable content, or related products can be applied to repay the advance. If products or platforms are cross-collateralized, revenue from one can affect when another begins generating payments to the developer.
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Also check which expenses may be deducted, whether marketing costs or overhead are included, and whether the developer must approve those expenses. Broad deductions can reduce the royalty base even when the stated percentage looks favorable.
What do published indie-deal figures show?
In an August 2020 Game Developer summary of lawyer Kellen Voyer’s dataset, the figures below describe 30 non-mobile indie game publishing agreements. The sample excluded mobile, porting, and localization deals; it is a snapshot of those agreements, not a current market standard.
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| Measure in the 30-agreement sample | Reported figure | How to read it |
|---|---|---|
| Average advance across agreements with and without advances | $318,000 | Sample average; not an expected advance for a new deal. |
| Average advance among agreements that included one | $460,000 | Applies only to the agreements in the sample with an advance. |
| Average revenue split | 60% developer / 40% publisher | The article also reported 71% to developers in no-advance deals and 55% when averaging deals with an advance. |
| Average agreement term | 6.5 years | Average reported for 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 parties to receive a share during recoupment | 58% | Share of sampled agreements. |
These results can help identify terms to ask about, but the sample’s size, scope, and date do not establish what a developer should expect in a different genre, region, funding arrangement, or year.
How are storefront revenue shares different?
A storefront’s distribution terms govern the platform’s share of sales. They do not replace or set the royalty terms in a separate developer-publisher contract. Epic’s policy is one example of a platform arrangement; Steamworks’ publisher resource discusses evaluating a publishing relationship and its contract terms, but does not prescribe a standard royalty rate.
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| Platform or resource | Published terms or guidance | What it does not establish |
|---|---|---|
| Epic Games Store | Epic says that beginning in 2026, its $1 million threshold resets for each title on January 1. The policy provides a 100%/0% revenue share up to that threshold, then an 88%/12% split. The threshold is per title and aggregates supported platforms; Epic says agreed recoupable obligations are handled first. | This is Epic’s platform policy, not a publisher royalty rate. Platform terms may change. |
| Kongregate | A support page updated March 19, 2026 says approved developers may earn up to 70% revenue share. The actual rate depends on the revenue-share programs they opt into. | “Up to 70%” is not a fixed rate in the upload agreement or a general industry figure. |
| Steamworks publisher resource | Guidance focuses on services offered, trade-offs, the health of the relationship, contract terms, and account access. | It does not set a standard royalty percentage. |
What should you compare in a publishing offer?
Compare the full economics and rights, not just the headline split. Before signing, check the agreement for:
- Royalty base and deductions: the defined receipts, permitted deductions, and any approval rights over expenses.
- Advance and recoupment: whether the advance is recoupable, what revenue repays it, whether products or platforms are cross-collateralized, and whether you receive a share during recoupment.
- Accounting and payment: how often statements arrive, when payments are due, any holdbacks for returns, and whether you can inspect records or dispute a statement.
- Rights and control: ownership of the game IP and who controls sequel, merchandising, adaptation, or other derivative rights.
- Term and exit: the agreement’s duration, renewal mechanism, and process for termination or rights reverting to the developer.
- Publisher commitments: the services the publisher actually agrees to provide, weighed against the trade-offs and account access described in the deal.
A higher percentage can still produce less money if it applies to a narrower base or follows broader deductions. Have a specialist review the actual contract in light of its jurisdiction and business context; this checklist is not legal advice.
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Why is there no single percentage to rely on?
Game royalties depend on the contract, the funding arrangement, the permitted deductions, the recoupment rules, and the rights being licensed or transferred. A published average or storefront policy cannot substitute for those terms: the useful comparison is what each offer pays, when it pays, and what rights and obligations come with it.
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