Northend Games shared the financial reality behind their real-time strategy titles, revealing how gross sales on Steam translate into actual developer income. The breakdown shows that a $560,000 revenue figure for Northend Tower Defense and Deepstone Rift does not equal profit for the studio. This disclosure matters because it illustrates the steep costs of platform fees, taxes, and refunds that eat into game development budgets. Players and industry observers can see exactly where the money goes after a purchase is made.
Breakdown shows refunds and commissions drastically reduce developer income
The financial report covers sales from the games Northend Tower Defense and Deepstone Rift on the Steam platform. Northend Games operates across China, Thailand, and the US, which creates a complex tax and refund landscape. The studio reported that refunds accounted for $134,000 of the total revenue. A 22% refund rate came specifically from the Chinese market, significantly impacting the final take-home pay.
Steam takes a 30% commission from the remaining $425,000 after refunds are processed. This fee removed $127,000 from the publisher's gross earnings. US taxes added another $9,700 to the costs, reflecting a 30% rate due to prior residency in Iraq. The studio now operates from Thailand, where the local tax rate is only 5%. Local Thai taxes accounted for $26,000 of the remaining funds.
After all deductions, Northend Games retained $115,000 as the publisher's share. The final profit stood at $146,000, which the co-founders split evenly. This resulted in $73,000 net to the developer. The studio equates this amount to approximately $15,000 per year over five years of work. The data confirms that platform economics and international taxes drastically reduce the income available for game development.
Source: IXBT
Discussion
0 comments