Epic Games just announced a new publishing division called Epic Games Publishing, and it's already signed on several established studios. The new partners for Epic Games Publishing are gen DESIGN, Playdead, and Remedy Entertainment.
I'd wager you've heard of at least one of those developers. Just in case you haven't though, gen DESIGN most recently made The Last Guardian, Playdead made Inside as well as its predecessor Limbo, and Remedy made 2019's Control, and the Alan Wake series before that.
It's a pretty huge deal. Noticeably, under this new publishing wing, each developer retains full ownership of all their IPs, and also has full creative control over all their licenses. As we reported earlier today, this deal has Remedy Entertainment developing two next-gen games for new consoles, both of which are focused on one new IP.
In a press release for the announcement, Epic Games said that it would be fully funding development for all new games from the three studios. This includes "developer salaries" and "QA, localization, marketing, and all publishing costs," according to the press release.
Alongside retaining control of the IP and covering costs, Epic Games Publishing will also use a 50-50 profit sharing model. Epic says that once costs are recouped, developers will earn "at least 50% of all profits."
Aside from Remedy's two new projects, we know relatively little about what games this publishing deal will cover from the other two developers, gen DESIGN and Playdead. The former studio, which is helmed by Shadow of the Colossus and The Last Guardian director Famito Ueda, stated that a new project was underway back in September 2018, but we've heard nothing else about the new game since.
As for Playdead on the other hand, there's little information to go on. We'll have to wait and see what the Inside and Limbo studio is up to next.