Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.
Published on March 30, 2008 By Draginol In GalCiv Journals

This week I'm out on the west coast on business. While staying in Redmond, I was able to hang out with Blair and Craig from Ironclad (Sins of a Solar Empire) since they're in the Vancouver area.  People on the outside probably don't realize how unique the Stardock / Ironclad relationship is in the game industry. When it comes to Sins, we might as well be a single team.

While I can't speak to exactly why our partnership has worked out so well, I can say that I think one reason is that we're zealots. That is, we are "true believers". Our mutual cause was to make sure Sins of a Solar Empire was a big success and all other considerations were cast aside.  If Ironclad needed anything from us, they had it. And vice versa.  And over time, it's grown beyond that. The experience has been so positive that now we can look at coordinating future releases together (both ours and theirs) as if we were one big company -- except that we're still independent companies. That is, by putting mutual success first, we end up with the benefits of a "bigger" company without any of the negatives.

We could or should probably write some sort of guide on the way our publishing system works and how it is different from the traditional system.  For example, typically, a game studio gets a huge advance on a game -- enough to pay for its development -- and then after release, the developer rarely sees anything beyond the advance.  But with ours, there's a smaller advance but a higher royalty.  As a result, Ironclad will see income from Sins of a Solar Empire for many years to come.

Consider the ramifications of that.  When game developers are able to see their games as revenue generating assets -- ones that generate a steady stream of income -- there's a lot more incentive to keep doing cool stuff.  As most people know, Sins of a Solar Empire is a very solid game. And yet, we've already released 2 free updates plus the third and fourth are in the works that add new features, graphics, etc.

The whole system is also just far more efficient.  Whether it be marketing or testing or design work, the fact that it's effectively one big team greatly increases what can be done and at a lower cost.  There is no single point of contact between companies. Emails and IMs go far and wide within both.  Until other publishers pick up on this, I think we have a major advantage in being able to produce really good games at a much lower price that generate a lot of money for the companies and give players a much better experience.

Forgive my typos, I've got a pretty bad cold.


Comments
on Mar 30, 2008
Sounds like you got the dreaded virus that's going around, hope you get better quick.

I have to say I've noticed that SD and IC seem to work as a single team, just based on the participation of both parties in the forums. It's great to see things work out well for you guys. IC has done a real bang-up job on Sins and it's great to see that kind of quality and support right out of the gate.

I think you guys definitely nailed this one and the release of Sins has brought me closer to Stardock as my first stop for new games. Really looking forward to whatever comes down the pipe in the future.
on Mar 30, 2008
Political Machine 2008 is one that springs to mind.....I'm rather intrigued by that one.
on Mar 30, 2008
In policy matters we call it the "Prisoner's Dilemma" Goes like this (ie traditional business setup)

A and B make plans to commit a crime, saying no matter what they won't rat on each other
A and B are caught by the police after committing a crime together
Prisoner A is locked in a room by him/herself
Prisoner B is locked in a room by him/herself

Detectives and the DA offer three options

Option 1: You both stay quiet and get 5 years
Option 2: You spill. You get 3 years while the other person gets 10 years
or Option 3: You stay quiet and the other person spills, he/she gets 3 years and you get 10 years.

The best option would for both parties to stay quiet but generally, people try to maximize their own benefits resulting, most likely, for both parties to end up getting 10 years (since both talked trying to save their own butts) when it would have been better to just stay quiet
on Mar 30, 2008
I see a future merger going to happen here.

Not yet, but maybe after ironclad have released their next sucsessful game.
on Mar 30, 2008

The point he made, that by co-operating they act as a big studio, without the negatives. If they merge, they would start to get "bigness" problems. It's probably better they just stay seperate and continue doing what they are doing, as it is working well.

It seems to me, it's a really bad idea to give the lump sum up front anyway. Most people and companies tend to be crap at managing large amounts of money. It would be better in my opinion to give the money along with the milestones.

Eg. Say the game had 10 milestones. You might get 25% up front, and the rest paid as each milestone is released, and then give royalties. That gives the developers incentive to get the milestones out, it improves the cashflow for the publisher, and still provides the passive income after release to help stimluate additional content.

Note: My opinion, I know about 0% about game publishing.

on Mar 31, 2008
Geez, Brad, you can't seem to catch a break these days!

I look forward to hearing about your publishing arrangements, should you choose to publish them.
on Mar 31, 2008
It's good thing having two independent companies working together rather than having an independent company working with a big company. We all know that Westwood learned that the hard way.
on Mar 31, 2008
Ok I don't if I can expain this very well, but this is the way I see things as far as businesses. It is rather organic... or I guess physical is a better term. Small companies are always going to be more efficient, and more profitable because of this one simple fact.

It seems to me that Stardock and Iron Clad are doing something that is not your general run of the mill business model. I believe to make a successful company you need people who can work well together and not very many of them. Many ideas are great, but eventually you have capitolize on one idea. The more people you have the harder it is to get everyone in the same boat as you. So here you have 2 relativly small companies that are willing to try a concept that may not be found in your common business model. I believe that most corperate models are horribly flawed. The main goal for most corperations is to grow and grow and grow. This as in life is not healthy.

Look at MS they are losing horrible on alot of fronts.. Google took over the majority of revenue generated from ads on the web. Sony won with Blue Ray over MS version. XBOX 360 sales must be hurting after that. They jumped the gun on Vista and now they are paying for it publicity wise. Yahoo is openly rejecting MS bids.

Now imagine if MS had stayed with what they were good at.. making OS. If they had stayed focused and worked on publishing a well rounded product we could possibly have a different outlook on MS today. They might not have been as big but probably more successfull in the fact that they could manage thier success better.

The big advantage with having a huge company is it sustain alot better than the small company.

I hope that stardock will stay in their own realm of what they are good at and try new things.... not the be bigger but to be sucessfull. I do not think that these terms are synonymous in terms of business.

P.S. I need an editor..
on Apr 02, 2008
Working as a Team works better every time, not as separate parochial entities. Proven time after time, work as a Team and use hands off leadership to encourage innovation. Wherever that model is used, and grubby individual bonus chasers are kept at arms length, the result is always far better than the efforts of single individuals grubbing about for a bonus - Team always earns more.

Money men never learn the lesson - find a leader, inspire innovation and you are on a guaranteed winner - bean count and your on a guaranteed loser.

All credit to the dev team - excellent job

Regards
Zy
on Apr 11, 2008
http://www.technewsworld.com/story/Is-Windows-Getting-Morbidly-Obese-62556.html

This is in line with my earlier post....
on Apr 13, 2008
I am just glad that the resources were there to make the game so great, and not rush it out on the originally planned release date. (when it probably would have had issues.)
Hooray for partnerships with people like the crew at Ironclad!