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As reported by Engadget, videogame merch and physical edition company iam8bit is suing Skybound Game Studios over alleged fraud and breach of contract in their multi-year partnership, particularly relating to their joint work on distributing Stray, the 2022 3D platformer where you play as a cat exploring a cyberpunk city.
Notably, Stray’s developer, BlueTwelve, and publisher, Annapurna, are mostly in the background of this story. As reported by Gematsu back in 2022, Skybound and iam8bit handled distribution of physical PS5 copies of the game, with iam8bit offering a special edition, as well as a vinyl record of the game’s soundtrack.
With regards to Stray, iam8bit alleges that Skybound used insider information—including confidential details of iam8bit’s royalty split with Annapurna—to cut the smaller company out of a distribution deal for the subsequent Nintendo Switch physical edition of Stray. Iam8bit further alleges that Skybound used marketing material iam8bit created in order to market this new release of stray that iam8bit was not formally a part of, and would not see revenue from.
