Borderlands 3 Developers Get Stiffed on Bonuses Despite Massive Sales

Borderlands 3 was a massive success, with fans having mixed feelings with the story but mostly agreeing that the gameplay was incredible. The brand itself crossed a billion-dollar global mark according to publisher Take-Two Interactive after the release of Borderlands 3. But despite this, another negative story has been added to the Borderlands 3 pile. With sources telling Kotaku's Jason Schrier that Gearbox employees were told that their bonuses would be significantly lower.

According to Schrier, 6 sources close to Gearbox told him that the bonuses were expected to be in the tens of thousands to even hundreds of thousands! The reason for the low bonuses was due to the game's development cost being more than expected.

Royalties from all of the developer’s games are split 60/40, with 60% going back into the company (and its owners) while 40% is distributed to employees in the form of quarterly bonuses. This system has been in place since Gearbox’s inception, and when the company has big hits, it can be lucrative. When 2012's massive Borderlands 2 came out, many Gearbox workers made enough money to buy houses—a fact that the studio often touted while recruiting new employees.

Due to failing such as Aliens: Colonial Marines and Battleborn bonuses in the company were low but that was expected to change with Borderlands 3. However, during a meeting with CEO Randy Pitchford employees were told the grim news. That the game was more expensive than predicted, with the biggest expense being the switch from Unreal Engine 3 to Unreal Engine 4. The game would need to recoup its $95 million budget coupled with the $140 million for the DLC before royalties could be paid.

Employees also told Jason Pitchford told them they can quit if they were unhappy with the situation.

When Kotaku reached out for a statement Gearbox responded with the following.

Borderlands 3 represents an incredible value to gamers and an incredible achievement by the team at Gearbox Software. Our studio is talent-led and we believe strongly in everyone sharing in profitability. The talent at Gearbox enjoys participation in the upside of our games – to our knowledge, the most generous royalty bonus system in AAA. Since this program began, Gearbox talent has earned over $100M in royalty bonuses above and beyond traditional compensation.

In the most recent pay period Gearbox talent enjoyed news that Borderlands 3, having earned revenue exceeding the largest investment ever made by the company into a single video game, had officially become a profitable video game and the talent at Gearbox that participates in the royalty bonus system has now earned their first royalty bonus on that profit. Additionally, a forecast update was given to the talent at Gearbox that participates in the royalty bonus to set expectations for the coming quarters. Gearbox is a private company that does not issue forward looking statements to the public, but we do practice transparency within our own family.

If true this is a depressing story of mismanagement. With employees who put in significant time to make an amazing game only to be denied their rewards for performing well. It also doesn't help the overall product as well.

Borderlands 3 despite having a mostly positive reception has been overrun with controversy. Many of which have little to do with the game itself. Such as the lawsuit between Pitchford and former Gearbox lawyer over $12 million in bonuses, Take-Two destroying a Borderlands YouTuber's channel, and physical assault of Claptrap's former voice actor by Pitchford.

Adam Siddiqui,
Senior Editor, NoobFeed
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