505 Games will get a cut of Payday 3's future earnings

505 Games no longer publishes Payday games, but a contract shows the company will still receive a cut of future Payday 3 earnings.

1 minute & 26 seconds read time

Starbreeze is contractually bound to pay 505 Games 33% of Payday 3's future revenues, new earnings reports confirm.

505 Games will get a cut of Payday 3's future earnings 642

While scouting the 2020 earnings reports for Digital Bros, 505 Games' parent company, I noticed something: 505 has a lot of interest and investment into Payday developer Starbreeze. The two companies go way back. 505 Games published Payday 2 way back in 2013, and three years later in 2016, it sold the Payday franchise's publishing rights back to Starbreeze.

The terms of this deal are interesting. According to the report, Starbreeze has promised to deliver 33% of Payday 3's future revenues to 505 Games as part of the transaction. Payday 3 only just recently found a publisher; Payday 3 will come out in 2023 on next-gen consoles and PC thanks to a publishing deal with Embracer Group's Koch Media label (Deep Silver).

In May 2016, the Group sold back its rights of PAYDAY2 to Starbreeze against a payment of USD 30 million and an earn out of USD 40 million as 33% of the net revenues from the future video game PAYDAY3

Payday 2 is still generating money for 505 Games, and made the company 2.28 million Euros in 2020.

Despite the strong investments into Starbreeze that account for nearly 12% of total company shares and 30% of voting rights, 505 Games and parent company Digital Bros. say they don't have any real sway over Starbreeze.

At December 31st, 2020, also as a result of minor purchases, the Group holds 61,758,625 Starbreeze STAR A shares and 24,890,329 Starbreeze STAR B shares representing 11.96% of share capital and 28.57% of voting rights.

Despite the continuing contractual relations and the equity interest held in the Swedish company, the Group does not believe it has any influence over Starbreeze.

505 Games will get a cut of Payday 3's future earnings 6
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NEWS SOURCE:digitalbros.com

Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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