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When each milestone is completed (and accepted), the publisher pays the developer an advance on royalties.

Successful developers may maintain several teams working on different games for different publishers.

where the term "second-party" originally referred to the consumers.

Third-party game development is a volatile sector, since small developers may be dependent on income from a single publisher; one canceled game may be devastating to a small developer.Because of this, many small development companies are short-lived.A common exit strategy for a successful video-game developer is to sell the company to a publisher, becoming an in-house developer.Most game development companies have video game publisher financial and usually marketing support.A developer may specialize in a certain video game console (such as Nintendo's Nintendo Switch, Microsoft's Xbox One, Sony's Play Station 4), or may develop for a number of systems (including personal computers and mobile devices).

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