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Electricb7

Member
Oct 27, 2017
1,314
Isn't this is the Prey 2 tactic?
I'm surprised people don't get called out for nasty BS like this.
 

John Caboose

Member
Oct 26, 2017
2,200
Sweden
Wow just finished reading. Super gross move by T2. They'd rather waste another year of development time than work out the deal with the original studio.
 

Rumenapp

Forza Photographer
Member
Nov 9, 2017
12,798
Why was the game pulled from Star Theory?

Wasn't there a contract with Star Theory that stated they were contracted to make the game, if so wasn't a breach of contract by 2K with the dev team?
 
Oct 26, 2017
6,151
United Kingdom
If the employer goes bankrupt then it's not poaching. The only recourse that I am aware of against poaching is non-compete or non-solicitation agreements.

Well that's just semantics. Whether poaching or not, if a publisher's intentionally tries to bankrupt a studio with a view of acquiring the studio talent, whether they succeed in sinking the studio entirely or not is pretty beside the point. It's still a scummy and unethical thing to do from the outset.
 

SaberVS7

Member
Oct 25, 2017
5,258
Why was the game pulled from Star Theory?

Wasn't there a contract with Star Theory that stated they were contracted to make the game, if so wasn't a breach of contract by 2K with the dev team?

With the colossally unequal power-dynamics between big publishers and small independent studios, "Breach of Contract" is a legally meaningless term in regards to what the big publisher does.

I believe some ex-GRIN folks explained this in regards to how Square Enix fucked over GRIN back in the day - While GRIN had grounds for legal action, they would be facing off against a corporation that could afford to exponentially outspend them in legal fees, while every dollar GRIN spent on lawyers for a suit would have been a dollar not spent on producing a new title to try and pitch through another publisher. Ergo, suing SE for Breach of Contract would only guarantee and accelerate the studio's bankruptcy.

Fax me the code if I'm wrong.
 

Kill3r7

Member
Oct 25, 2017
24,445
Well that's just semantics. Whether poaching or not, if a publisher's intentionally tries to bankrupt a studio with a view of acquiring the studio talent, whether they succeed in sinking the studio entirely or not is pretty beside the point. It's still a scummy and unethical thing to do from the outset.

Agreed. Such conduct is unethical but it is not necessarily illegal on its face. My point is that there are few legal tools to defend oneself in such an event. It is surpring that it doesn't happened more often given the power imbalance in the industry.
 

jett

Community Resettler
Member
Oct 25, 2017
44,659
That's just being a piece of shit. Doing something like this should be illegal.

This is a great story to warn companies from working with Take 2.
 

Falchion

Member
Oct 25, 2017
40,963
Boise
Damn that's fucking awful. I feel especially bad for all the people who stuck around to try and save the company and ended up out of a job. Hope 2K catches a lot of shit for this.
 

justiceiro

Banned
Oct 30, 2017
6,664
Man, this IP is cursed. The game is always successful, but the devs always get the short end of the stick.
 
Oct 25, 2017
3,358
Canada
Great reporting from Jason. I feel bad for the developers.

Yes, the hedge was co-owned by John Riccitello who I think sort of "planned" it, and he bought out BioWare that way and became CEO with that acquisition.
I seem to recall BioWare and Pandemic announcing the Elevation Partners merger as a way of maintaining their independence (Shane Kim mentioned Microsoft wanted to purchase BioWare, but Elevation made it impossible/difficult). Obviously that didn't last long. I've always assumed EA bought them for SWTOR -- their answer to World of Warcraft -- but that's a topic for another time...
 

Tovarisc

Member
Oct 25, 2017
24,434
FIN
Private Division, also a subsidiary of Take-Two/2K, likes to style itself as more risk takers image to publishing new IPs from independent studios.

After this story, studios will now think twice before considering working with them.

I wonder if something similar happened with David Goldfarb's studio, The Outsiders. They were working on that Darkborn monster game, https://www.youtube.com/watch?v=cXa0FlYQGMU, for 2K's Private Division. Then they quietly put project into deep ice and all of sudden David came out that they are working on new IP now.

IGN's Summer Event schedule revealed that they are now working with Funcom.
 

Tagyhag

Member
Oct 27, 2017
12,507
Take Two doesn't get enough flak for the shady shit that they do.

And I assume that it's because they own Rockstar.

I hope more people will call them out.
 

Filipus

Prophet of Regret
Avenger
Dec 7, 2017
5,132
With the colossally unequal power-dynamics between big publishers and small independent studios, "Breach of Contract" is a legally meaningless term in regards to what the big publisher does.

I believe some ex-GRIN folks explained this in regards to how Square Enix fucked over GRIN back in the day - While GRIN had grounds for legal action, they would be facing off against a corporation that could afford to exponentially outspend them in legal fees, while every dollar GRIN spent on lawyers for a suit would have been a dollar not spent on producing a new title to try and pitch through another publisher. Ergo, suing SE for Breach of Contract would only guarantee and accelerate the studio's bankruptcy.

Fax me the code if I'm wrong.


Honestly I don't understand why the US doesn't change the way it processes legal battles. The group that has lost should pay lawyer fees for the opposite group. How are little companies ever supposed to fight the big boys?

I feel most of the world has implemented that system (whoever loses has to pay lawyer fees). Am I wrong?
 

Gestault

Member
Oct 26, 2017
13,371
Take Two looks bad here yea. Especially because the article paints them in such an unfavorable light. They used their leverage to put a much smaller shop in an unenviable position. They're going to lose development partners going forward from their actions. As well they should. Canceling projects puts people's livelihoods at risk at smaller studios.

But they did not need to offer jobs to people after cancelling the contract. Like, you could interpret that as poaching as the article does here, or you could also interpret that as attempting to mitigate harm to people they've wronged by offering them a job.

I agree that if the terms they offered are worth less than the current employment situation, then yea it's unethical. But if they're offering to match or exceed salaries compared with the current employer, then it's kind of a different story. That's an important thing to know here.

The way things were communicated, however, definitely does not pass the straight-face test. But the article glosses over the terms of the offers too much for us to really make us informed on Take-Two's motives here. This could have been a harsh business decision that they were attempting to make right, or this could have been a genuine poaching of talent.

Claiming we don't know enough to make a casual judgement of T2 here seems...very generous.

[edited to change an overly harsh tone from me]
 
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Chrome Hyena

Member
Oct 30, 2017
8,769
Take Two doesn't get enough flak for the shady shit that they do.

And I assume that it's because they own Rockstar.

I hope more people will call them out.
Of course. No one will call them out or anything because they own Rockstar who makes GTA and RDR games. So as soon as GTAVI comes along, most will not care about their business practices. Same with EA and how they basically murder studios left and right, but it doesn't matter.
 

Nome

Designer / Self-requested ban
Banned
Oct 27, 2017
3,312
NYC
Really curious if the company leads knew about this beforehand or if they withheld that information from the team. Too bad they didn't comment.
 

SaberVS7

Member
Oct 25, 2017
5,258
Honestly I don't understand why the US doesn't change the way it processes legal battles. The group that has lost should pay lawyer fees for the opposite group. How are little companies ever supposed to fight the big boys?

I feel most of the world has implemented that system (whoever loses has to pay lawyer fees). Am I wrong?

Corporate Money in politics. The current system is to the benefit of the corporations which own the legislatures, ergo it will not be changed.
 

ABIC

Banned
Nov 19, 2017
1,170
This happens.

In fact, it actually happened to me. Multi-billion dollar company catstringed us, a startup, on more funding for weeks (incurring burn and shortening our runway). Then a day after they agree more funding, they turn around and said we changed our minds. Said it made more sense for us to just join them instead as an internal studio.

One of us did join them though, it was better for his career.
 

DealWithIt

Member
Oct 28, 2017
2,692
Honestly I don't understand why the US doesn't change the way it processes legal battles. The group that has lost should pay lawyer fees for the opposite group. How are little companies ever supposed to fight the big boys?

I feel most of the world has implemented that system (whoever loses has to pay lawyer fees). Am I wrong?

Fee shifting makes the risk of loss more severe which is a major advantage for the party that us more able to bear the cost of litigation. The benefit of the "American system" (that's what it's called in legal circles") is that it means that there is reduced risk when the little guy wants to sue a big guy. However it's important to note that some kinds of cases fall under fee-shifting statutes, which means loser pays fees. In those cases the legislature is usually trying to disincentivize frivolous lawsuits.

So, in summary, the issue is more complicated than you think and varies by subject area.

Corporate Money in politics. The current system is to the benefit of the corporations which own the legislatures, ergo it will not be changed.
This is not a good take.

Finally, if the case is good, the attorneys will take the case on contingent fee, meaning the plaintiff doesn't pay any fees unless they win.
 
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jschreier

Press Sneak Fuck
Verified
Oct 25, 2017
1,096
This is probably a more accurate summary than others are coming up with.
Nah, it's full of inaccuracies.

"About 80% of the Star Theory's employees took the offered employment and are now working on KSP2" -> incorrect

"Late last year (2019), the project was reorganized when the scope was changed." -> incorrect

"What seems more likely is that the project's development wasn't going so well and the leadership on both sides tried to renegotiate the terms." -> incorrect

"In such a situation, Star Theory was almost certainly going to lay off significant numbers of their work force to stay afloat, so Take Two made the first move by offering to hire them." -> very incorrect and misleading
 

Deleted member 43

Account closed at user request
Banned
Oct 24, 2017
9,271
Nah, it's full of inaccuracies.

"About 80% of the Star Theory's employees took the offered employment and are now working on KSP2" -> incorrect

"Late last year (2019), the project was reorganized when the scope was changed." -> incorrect

"What seems more likely is that the project's development wasn't going so well and the leadership on both sides tried to renegotiate the terms." -> incorrect

"In such a situation, Star Theory was almost certainly going to lay off significant numbers of their work force to stay afloat, so Take Two made the first move by offering to hire them." -> very incorrect and misleading
You're right, those speculation points could very well be (or in this case, are) inaccurate. I was speaking more of the logic behind this being a calculated assassination rather than an unfortunate (and cold-hearted) businesses move.
 

jschreier

Press Sneak Fuck
Verified
Oct 25, 2017
1,096
You're right, those speculation points could very well be (or in this case, are) inaccurate. I was speaking more of the logic behind this being a calculated assassination rather than an unfortunate (and cold-hearted) businesses move.
My understanding is that Private Division informed the studio owners at the exact same time they were sending out LinkedIn messages to employees offering them jobs. Whatever it was, it was very much a calculated move, and it upset a whole lot of people, including a couple who I hadn't originally spoken to, but who reached out to me today after the story ran. Sucks that this ask a game dev tumblr (which I have enjoyed in the past) is handwaving it in such misleading and inaccurate fashion.
 

Gestault

Member
Oct 26, 2017
13,371
My understanding is that Private Division informed the studio owners at the exact same time they were sending out LinkedIn messages to employees offering them jobs. Whatever it was, it was very much a calculated move, and it upset a whole lot of people, including a couple who I hadn't originally spoken to, but who reached out to me today after the story ran. Sucks that this ask a game dev tumblr (which I have enjoyed in the past) is handwaving it in such misleading and inaccurate fashion.

Thanks for taking the time to spell this out.
 

Deleted member 43

Account closed at user request
Banned
Oct 24, 2017
9,271
My understanding is that Private Division informed the studio owners at the exact same time they were sending out LinkedIn messages to employees offering them jobs. Whatever it was, it was very much a calculated move, and it upset a whole lot of people, including a couple who I hadn't originally spoken to, but who reached out to me today after the story ran. Sucks that this ask a game dev tumblr (which I have enjoyed in the past) is handwaving it in such misleading and inaccurate fashion.
Oh I had no doubt about the timing, it's certainly an ugly and devastating move by TT no matter how you slice it.

I would love to hear what the content of those conversations between PD and the studio leadership were. TT was clearly happy with the work, so I wonder what the contract disagreements were, or what the buyout offer looked like. It would be great to also know what changed on PD's end, was it a management shakeup or strategic re-alignment that led to this. It has implications for all their partnerships going forward.
 

Filipus

Prophet of Regret
Avenger
Dec 7, 2017
5,132
Fee shifting makes the risk of loss more severe which is a major advantage for the party that us more able to bear the cost of litigation. The benefit of the "American system" (that's what it's called in legal circles") is that it means that there is reduced risk when the little guy wants to sue a big guy. However it's important to note that some kinds of cases fall under fee-shifting statutes, which means loser pays fees. In those cases the legislature is usually trying to disincentivize frivolous lawsuits.

So, in summary, the issue is more complicated than you think and varies by subject area.

But wouldn't that risk not really matter because some people are obviously in the wrong/right? (in my mind I wouldn't see people sue each other unless they really believe they were in the right… right?)

Also, who determines if a case falls under fee-shifting statutes? Is this something that can be determined in contracts (if company breaks x contract we have the right to sue with fee-shifting?=

Sorry, Im very ignorant on the subject and would love to learn more.
 

j7vikes

Definitely not shooting blanks
Member
Jan 5, 2020
5,664
I'll need to see more evidence before I'll just outwardly believe giant publishers and corporations act unethical.
 

j7vikes

Definitely not shooting blanks
Member
Jan 5, 2020
5,664
My bad, with some of the things people say these days it is getting a lot harder to assume its sarcasm.

All good. I'm pretty sarcastic by nature and with some of the stuff people share it makes you wonder if it's intentional and tongue in cheek or pure lunacy.
 

Deleted member 63139

User requested account closure
Banned
Jan 17, 2020
399
You can't shove lootboxes and pay-to-win in your online components everywhere and be a good guy.

KSP2 is a game I really anticipate playing,...but sadly I think it will be complicated to see it release

Excellent article by Jason
 

TheChrisGlass

Member
Oct 25, 2017
5,606
Los Angeles, CA
With the colossally unequal power-dynamics between big publishers and small independent studios, "Breach of Contract" is a legally meaningless term in regards to what the big publisher does.

I believe some ex-GRIN folks explained this in regards to how Square Enix fucked over GRIN back in the day - While GRIN had grounds for legal action, they would be facing off against a corporation that could afford to exponentially outspend them in legal fees, while every dollar GRIN spent on lawyers for a suit would have been a dollar not spent on producing a new title to try and pitch through another publisher. Ergo, suing SE for Breach of Contract would only guarantee and accelerate the studio's bankruptcy.

Fax me the code if I'm wrong.
This happened to a project at a company I worked at many years back. They put together a pitch project that a first-party publisher paid them to do. In the end, they made up some BS claims about the breach of contract so they wouldn't have to pay them for it, and went with a cheaper dev.
The company threatened to take it to courts, so they eventually did pay up, though.
 

Maple-Tech

Member
Oct 27, 2017
228
Honestly I don't understand why the US doesn't change the way it processes legal battles. The group that has lost should pay lawyer fees for the opposite group. How are little companies ever supposed to fight the big boys?

I feel most of the world has implemented that system (whoever loses has to pay lawyer fees). Am I wrong?

The US has it in some cases too, but its not the default like other parts of the world.

But getting compensated for your legal fees doesn't really matter if you can't afford them in the first place. GRIN was brought up earlier, and they were from Sweeden, so they would have these types of laws, but going to court in the first place would bankrupt them.
 

Birbos

Alt Account
Banned
May 15, 2020
1,354
Where's the line between giving someone a better offer for their work and poaching?
 

Messofanego

Member
Oct 25, 2017
26,191
UK
Uhh that was painful to read. They only saw dollar signs with a known IP like Kerbal Space Program and didn't care about the devs to make the sequel. And to kill them during the COVID-19 pandemic, that's inhumane of 2K. I'm not surprised we are not going to see KSP 2 until fall 2021.
 

DealWithIt

Member
Oct 28, 2017
2,692
But wouldn't that risk not really matter because some people are obviously in the wrong/right? (in my mind I wouldn't see people sue each other unless they really believe they were in the right… right?)

Also, who determines if a case falls under fee-shifting statutes? Is this something that can be determined in contracts (if company breaks x contract we have the right to sue with fee-shifting?=

Sorry, Im very ignorant on the subject and would love to learn more.
I think there are fee shifting agreements in some contracts, but I'm not familiar with the subject.

In general lawsuits are much more complicated and risky then a simple "X is right, Y is wrong." It's a long process where both sides collect evidence from each other during the case. That's expensive, and you don't know how it's going to turn out until it's already underway/over. That's not to mention the unpredictability of witnesses, judges and juries. In general, and I think this is true anywhere,the law doesn't become clear on a subject until it's heard by a court. And most people's conflicts are different in tiny but significant ways from every other conflict that ever happened in the past.

It gets even tougher when you add a contract to that. Then, the court has to interpret the contract, which may be ambiguous. On top of that in many lawsuits both sides have very good points and there's not always an obvious winner.