The publisher also communicated inconsistently, Oganesyan explained, about sales forecasts and plans.
For instance, when Nacon bought a “competing” studio that was also working on a Lovecraft-inspired game, it demanded The Sinking City’s source code, despite the previously agreed upon ownership by Frogwares.Īccording to the statement, once Frogwares refused to comply with this demand, Nacon began withholding its agreed-upon financial contributions for a period of over four months. However, Frogwares maintains that Nacon soon began utilizing their involvement in sales and distribution to exert pressure on the developer. The terms of this agreement were that Frogwares would receive paid installments at agreed-upon production milestones.
In turn, Nacon would make a financial contribution to the game’s ongoing development, while Frogwares would maintain sole ownership of the game’s IP. In its original iteration, this contract signed 2 years after game production started, established that Nacon secured the right to sell and commercialize The Sinking City on Xbox One, PlayStation 4, Steam, and the Epic Games Store. The Sinking City‘s release and resultant grievances between developer and publisher are detailed at length in Frogwares’ statement posted on August 25th, 2020.Īt that time, Frogwares’ marketing manager Sergey Oganesyan posted an open letter on Frogwares’ website, maintaining that The Sinking City had been pulled from Steam and other storefronts due to a violation of the developer’s licensing agreement with Nacon.
This well-documented legal dispute originates in June 2019. In the latest development of a lengthy legal dispute between developer Frogwares and publisher Nacon, Frogwares has issued a Digital Millennium Copyright Act (DMCA) strike against Nacon following the reappearance of The Sinking City on Steam’s digital storefront.
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