OTK presents Mad Mushroom, a developer-led label

Although some developers have become involved in the development and publishing of games, they have generally been created by a single individual. In contrast, Mad Mushroom has access to several well-known developers and their 38 million social followers across platforms.

While the company has yet to sign its first developer contract, executives indicated they are close to a deal. Initially, the company plans to hire 10–15 employees and increase as the game list expands.

Mad Mushroom creator advantage

Unlike other publishers, Mad Mushroom has the advantage of working with some of the biggest names in gaming. Streamers have brought games like Internet Us and Dark and Darker out of obscurity and into the spotlight.

Mad Mushroom plans to give developers a voice in the early stages of development to keep games engaging with audiences. Signed creators will have access to established and multi-genre creators with diverse perspectives.

In fact, Mad Mushroom’s core philosophy is to create games that its streamers enjoy. Specializing in a certain genre is not planned. Instead, Mad Mushroom prioritizes replayability, audience engagement, and games that create engaging content without commercial viability. Also, creators with a unique story or background are a plus.

Compared to other publishers, Mad Mushroom is in a unique position because of its relationship with these developers.

“Since the death of retail, the value and importance of marketing to developers, especially in India, have increased dramatically. One of the most expensive aspects is influencer marketing,” OTK co-owner, founder, and CEO told Tips Out. “Having a team of developers who will make games for less or no cost gives us a leg up on other publishers.” This allows us to invest the money we would have spent on influencer marketing in other types of marketing.

OTK has started other related businesses that will also take advantage of this flywheel. OTK launched its computer line, Starforge Systems, in 2022, and its Mythic Talent agency earlier this year.

“The vertical integration of OTK makes us extremely efficient. We have streamers to sell PCs and now we will also have games to promote. It’s a natural addition to our umbrella,” said Zack “Asmongold” Hoyt, co-owner and founder of OTK.

Beyond the business benefits, Mad Mushroom is a valuable connection between these creators and their audiences. This personal touch will help Mad Mushroom build deeper relationships with fans.

“This empowers the entire community because developers will get feedback quickly.” The community wants developers to listen, and we can act as a conduit to make that happen. It’s a huge advantage for us,” Asmongold added.

The ethos of OTK

As a collective of creators, OTK understands that building a strong relationship with the audience is the basis of its activity. Of course, maintaining that trust is key to both OTK and Mad Mushroom. Thus, the publisher seeks to establish mutually beneficial agreements between itself and independent developers.

“Historically, publisher deals with developers have been somewhat predatory, especially when it comes to smaller independent developers. Many of today’s publishers take over IP rights and split the revenue unfairly between developer and publisher,” said Tips Out. “We know we can bring attention to our games and that gives us a huge advantage.” We have the luxury of being able to give that freedom and flexibility back to developers. Also, we are all public figures. If we don’t give people good deals, it will come back to haunt us.

Part of that is a revenue split that is “aggressively” pro-developer and a commitment to transparency. The company plans to release its standard contract to the public soon. While the details are still being worked out, Mad Mushroom executives have indicated that the revenue split could be as high as 70% in favor of the developer.

“Our goal with our publishing contracts is to give more freedom to creators. We don’t want to touch their creative vision. We don’t want to touch their IP. As content creators ourselves, we know how sensitive this is,” said Tips Out.

The future of publishing

With the rapid development of the gaming market, organizations like OTK and Mad Mushroom are disrupting the standard publishing model. Of course, Mad Mushroom will still carry out the usual duties of a publisher, such as distribution, localization, live operations support, etc. However, the publisher’s transparency, integrated distribution, and forward-looking strategy will make it an attractive option for indie developers.

“The future of publishing will empower the creativity of creators and figure out your secret sauce.” No two publishers are the same. “OTK and Mad Mushroom have found not only their secret sauce but a way to infuse it into publishing based on where the games industry is going,” said Mad Mushroom advisor Mike “Sibs” Silbowitz.

Instead of publishers calling the shots and developers executing, Mad Mushroom aims to create a mutually beneficial partnership between developers, publishers, fans, and developers. Given the recent controversy, OTK’s move to diversify its activities and support the talents of ordinary people is more important than ever.

“At OTK, we don’t see the industry as a zero-sum game. When another gaming organization wins, we win,” said Zachary Diaz, chief strategy officer at OTK. “I wish more people in our space would have this attitude that we can all rise together.”