Gearbox Software developers will be receiving much smaller Borderlands 3 royalty checks than they were promised by management, according to a new report. That’s despite Borderlands 3 selling over 5 million copies in its first week and going on to sell nearly 8 million copies by February.
This latest incident is just one in a long line of troubling stories to come out of Gearbox Software in the last year. Before the release of Borderlands 3, it was revealed that Gearbox was not retaining two of the series’ veteran voice actors, but that it was keeping actor Chris Hardwick, whose ex-girlfriend had accused him of sexual abuse. One of the ousted voice actors, David Eddings, accused Gearbox Software boss Randy Pitchford of physically assaulting him, which was corroborated by another employee. By the time Borderlands 3 hit shelves, allegations had also emerged that Pitchford had secretly secured a $12 million bonus from publisher 2K Games, and left a USB drive containing underage pornography at a Medieval Times restaurant.
Pitchford is once again at the center of a controversy, as the CEO told Gearbox employees yesterday that they would not be receiving checks worth up to hundreds of thousands of dollars as promised by the company, according to Kotaku. These checks are part of Gearbox’s compensation scheme, whereby the studio reportedly pays employees below market rates, but makes up for it by offering a 60/40 royalty split. Kotaku reports that bonuses are still being distributed, but that they’re much smaller than the “six-figure bonuses” promised to some employees.
Gearbox Software’s explanation for the smaller-than-expected bonuses is that Borderlands 3 cost more to make and sold fewer copies than the company was expecting, and that the studio ramped up hiring during its production. The game’s increased cost comes from a mid-development switch from Unreal Engine 3 to Unreal Engine 4 and a contract with 2K Games that required Borderlands 3 to make back both its own budget and the budget of the game’s DLC before Gearbox would receive royalties. Still, both Borderlands 3 and its DLC have been successful by all accounts, and there’s no sign that Gearbox gave any hint that its developers should expect lower bonuses before now. Instead, Pitchford reportedly told employees that if they were upset at the surprise announcement, they should quit their jobs.
It’s hard to be surprised by evidence of poor decisions and mismanagement by Gearbox and Pitchford at this point, but the latest news seems especially shocking. Not delivering on promised bonuses for hard work in an industry as volatile as game development is cruel at the best of times, but in light of the economic instability from the ongoing coronavirus pandemic, it could be even more catastrophic.
Source: Kotaku