Saber Interactive Only Started Making Profits After Promising To Remaster Halo For Free

In a surprising turn of events, working for free was actually beneficial for Saber Interactive – a move that usually isn’t advised. This unexpected success story emerged when they offered their services without charge, which eventually led to them securing a high-profile project. This intriguing tidbit is derived from an interview conducted by Stephen Totilo of Game File with Saber’s co-founder and CEO, Matthew Karch. During the conversation, Karch delved into the complexities of managing an independent studio and the reliance on royalties stemming from collaborations with other studios.

Saber’s initial career phases involved collaboration with Ubisoft on projects that didn’t generate income for them. Later, Saber developed a first-person shooter game titled TimeShift, which faced significant delays following Activision’s Vivendi acquisition. Another project, Inversion, was undertaken for Bandai Namco. During the development of this game, Saber encountered prolonged periods without payment while Bandai Namco deliberated on their expectations for the final product.

According to Karch, Saber’s opportunity to work on a project arose when Microsoft was seeking proposals from external studios for a remastered version of Halo: Combat Evolved to celebrate the game’s anniversary. Karch then proposed to an anonymous Xbox executive that Saber could take on the task without any cost.

Karch stated that he would take on the task without charge as it was for Halo, which was the most prominent franchise globally at the time. He explained it as if having a Harvard degree on display, everyone would want to collaborate with him after seeing his involvement in the latest Halo game. This project, he believed, would pave the way for new opportunities, so he decided to make a sacrifice and work on it despite potential losses.

Initially, his gaming buddy prodded him to reveal a genuine figure. Karch proposed $4 million, considering the rate was less than what other studios suggested and understanding he could manage it within the cost-effective development setting in St. Petersburg, Russia – Saber’s base at that moment. Nevertheless, Xbox eventually acknowledged his initial proposal and incorporated provisions in the Halo remaster agreement that essentially guaranteed Saber would receive no profits from the project.

Originally, Karch anticipated that focusing on a prominent project would be advantageous for Saber in the future, and this assumption was validated when Microsoft presented another offer. This time, they asked if Saber could upgrade Halo 2 and transfer Halo: Anniversary Edition to Xbox One as part of the 2014 release of Halo: The Master Chief Collection. Inadvertently, Microsoft left out the contract section regarding the upgrading project, and Karch insisted on signing only after Microsoft eliminated a clause that decreased Saber’s royalties. The company conceded, and Karch stated that the earnings from The Master Chief Collection amounted to “tens of millions” of dollars for Saber.

As a gamer, I was raring to go when Karch spoke up. We’ve seen others profit from what we’ve created. Now it’s time for us to turn the tables and cash in on our own creations.

Afterward, Saber Interactive continued to manage game-related projects for other studios, including adapting The Witcher 3: Wild Hunt for Nintendo Switch on behalf of CD Projekt Red. Meanwhile, the studio also bolstered its internal development capabilities by working on titles like World War Z and its sequels, as well as Basketball Playgrounds, a popular mobile sports game. In 2020, Embracer Group acquired Saber Interactive; however, in 2024, Karch regained ownership of the studio when his company, Beacon Entertainment, purchased Saber from Embracer. Currently, Saber is spearheading the development of the Star Wars: Knights of the Old Republic remake, though details about its progress and potential release date remain undisclosed.

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2025-02-12 18:39