Here’s a bold statement: the way game publishing contracts are structured today is fundamentally broken—and it’s hurting developers more than anyone realizes. But here’s where it gets controversial: Tim Bender, CEO of Hooded Horse (the publisher behind Manor Lords), is calling out the industry for violating basic contract principles, and his arguments are turning heads. In a recent interview with PC Gamer, Bender didn’t hold back, claiming that most publishing agreements are unfair, inefficient, and riddled with risks that developers are ill-equipped to handle.
Bender, who has a legal background, points out that contracts should be designed to benefit all parties involved—a principle he says is often ignored in the gaming industry. And this is the part most people miss: one of the core issues, according to Bender, is the uneven distribution of risk. He emphasizes, ‘One of the principles is that risk should be borne by the party best able to bear that risk.’ Yet, many publishers shift the bulk of the financial risk onto developers, leaving them vulnerable if a game underperforms.
Hooded Horse takes a different approach. Their ‘standard’ contract gives 65% of revenue to the developer—a significantly higher share than many industry norms. While they do take a larger cut if they’ve partially funded the game, they notably have no recoup clause. This means they don’t prioritize reclaiming their investment before the developer sees a profit. Bender calls the common practice of publishers recouping costs first ‘fundamentally stupid,’ arguing it stifles a game’s potential to recover or grow.
He illustrates this with a relatable example: ‘There’s a lot of games that come out, maybe they had a rough launch but could have bounced back, or a decent launch that wasn’t enough to overcome a giant recoup term. If only that hadn’t been there, they could have been supported.’ Bender believes that without these restrictive terms, developers are better incentivized, more creative, and ultimately, everyone wins.
Here’s the controversial part: Bender doesn’t just stop at contract reform. Last year, he made waves by declaring Hooded Horse would refuse to work with studios using generative AI, labeling the technology ‘cancerous.’ This stance has sparked debates about innovation versus ethical boundaries in game development.
So, here’s the question for you: Is Bender onto something, or is he overstepping? Do publishing contracts need a radical overhaul, or is the current system fair enough? And what about AI—is it a threat or a tool? Let’s hear your thoughts in the comments. One thing’s for sure: Bender’s bold approach is forcing the industry to take a hard look at itself—and that’s a conversation worth having.
