Sega arent going to pay High Voltage to publish a game like this... I really don't think there was a lot of publishers competeing trying to pick it up but High Voltage NEEDS a publisher.
While yes Sega will pay for distribution marketing etc I think those are costs that are recovered pretty quickly... Pretty sure these kinds of deals work out in Segas favour.
Actually there were apparantly ten different publishers making offers to publish the game:
Really great news. The folks at High Voltage let me know yesterday that since our posting of The Conduit preview, 10 publishers have come calling to bring the game to Wii. I have to think that sooner or later they'll sign on with someone officially and we'll see the title on retail shelves as a result.
http://blogs.ign.com/Matt-IGN/2008/04/23/87599/
The fact is, Sega would absolutely need to pay for development costs in some way. Either through buying the rights to publish for an amount that covers development costs, or by sharing the profits they make with high voltage.
What you're suggesting sounds like High Voltage made the game on their own dime and then just forfeited the profits to SEGA. That's like if if you drew some illustrations and then just gave the rights away to a book publisher for no money. It just couldn't work that way.
But if you take a game like The Conduit that game was made almost completely on High Voltages money... they didn't have a publisher until last minuite.
I don't imagine Sega paying THEM to publish the game... Sega does not need a game like Tournament of Legends in their line up but High Voltage NEEDS a publisher because they can't do it alone.
If this game had a lot of publishers after the rights to publish then I think that only confirms that it's because it is a VERY sweet deal for the publisher money wise. Because I'm sure they could all tell it wasn't going to be an A grade game, thats not why 10 publishers were interested in this title.
I was talking about Conduit having ten publishers, not sure on ToL. The reason that Conduit had various publishers chasing it was because it was getting lots of positive coverage and looked to be a hit.
In any event, please explain what you think happened between Sega and High Voltage, because I'm not sure I get what you are saying. Video games are made by a Publisher paying a Developer to make the games for them, so they can sell them.
Are you saying that High Voltage Software made the game on their own dime, then just gave it away to Sega to take the profits?
If that's the case then surely HVS will be
sharing any profits the game makes, AFTER Sega pays for the marketing and other associated costs of getting it to market. There is no doubt that Sega is outlaying money to get this game out there one way or the other.