[pandaman]

Before 7th generation pretty much everyone paid royalties in the games. I believe one of the major reasons the industry is in shambles now is that, with the advance of the 7th generation, 3d parties moved to cut off royalties either by acquiring studios or by rigging contracts. Still, 3d party owned studios working on profitable titles are paying bonuses that are proportional to sales more or less. For example, check out Activision vs. Infinity Ward GMs lawsuit.

[chipsy]

I think that with respect to game royalties, that ship set sail a long time ago. Publishers in the earliest generations would often give creators huge royalties, and it's just been on a gradual decline since then.

The topsy-turvy situation the industry is in now, though, has countless factors - it's going to be discussed for years to come, and the signs of disruption are appearing on all fronts.