Paradox Interactive Ab - ...if just one more expansion

[Akee]

@Verneri_Pulkkinen

@Mzazz

Totally lost with these, but let’s say some LEGO Mordor DLC is produced, how are game deals like this usually structured? Does the entire risk stay with Paradox while the profit is shared, or is the risk shared as well? Are they essentially just buying the LEGO and LOTR IPs, or is there usually a deeper partnership?

Hard to say, deals can be so varied. For example, in this case, Lego has clearly lent its brand for Paradox to use, but Cities Skylines is an IP owned by Paradox. What happens when these are put in the same bowl and whisked together? Lego probably gets a slice of the sales, but surely Paradox as the developer and publisher also gets a good share. One can only speculate.

In Insomniac’s leaks a couple of years ago, the licensing of the Marvel IP (e.g., Spider-Man, Wolverine) went by a net revenue share agreement running at 10-20% on digital base copies. For DLCs/add-ons, the license fee increased to, if I recall correctly, about 20-25% of net sales.

I would think LEGO could go with similar terms, given it’s a big, well-known, attractive IP. This is purely speculation, of course. However, I don’t believe a single cent flows from LEGO towards Paradox.