So I got a crazy question

Is $500k greater than or less than the difference between x% and 8% of the royalties? Hard to tell. I have no idea what proper percentages are and I won't get into that, but if it were me I would hold on to my rich uncle's money.

Royalty is 10% gross. Net it as you must.

Games can't cost you more than $40 each to print over 10k. They make 30% for producing it ($12 max each), 30% for distribution ($15 each) and 30% for retailing ($20 max each). Thats how you end up with those 89.99 boxes! 10% Royalty over that is $9 gross, their offer is never net, because they don't pay your taxes. So, the most you'll get is $6 clean each (you'll need an account wizard).

Do your numbers (you should have anyway, to convince your fairy uncle). You may handle the production part, leaving them distribution and retail.

Most important, establish the release schedule. Ten games is a lot and you may be stuck with them for long with no monkeys on the street.

I'll love to meet your uncle LOL

This comes back to basic business. Sounds like you need a biz plan and a marketing plan. There are plenty of free downloads for sample business plans out there. Make your uncle understand the niche that your games fill, how they will be produced, how they will be distributed, how they will be promoted and a pricing sensitivity to go with it. Calculate expected gross margin (sales minus costs). Remember that taxes need to be taken out of your earnings.

In the marketing plan, present the genuine strength of your game offering, the weakness of your offering compared to other games in the same market space, your opportunity for growth and improvement of the market, and the threats that exist against your game being a success (including production showstoppers, such as inability to get Chinese printing once you start there, etc). Explain your strategy for how you would promote the game, how you would get your customers to look at it the first time, how to get them to buy it once they've seen it once or twice or three times, and how to remind them that they're interested in your game time and time again until they've finally bought it from you.

This all takes money, and time.

Use these plans, not just to tell the story to your Uncle about why you can make him more money in return than if he had invested the money in the Dow Jones Industrial Index or S&P 500, but also use the plans to convince YOURSELF that this is a good idea, and that the work will be worth the initial money, time and effort, after all other costs, selling/marketing expenses, taxes, and profit-taking by Uncle are taken out of the mix.

Most important of all - be fair and honest in your self-assessment. The last thing you ever want is to have money problems get between you and family. Sorry - that isn't business 101 like the rest, it is just personal belief from personal experience. Use it how you want, and proceed with caution. Good luck to you!! I'd love to help you by critiquing your business plan once you write it, before you submit it.

Dom

Personnally, I prefer the "start small" and then grow. Build reputation and loyalty first. This way it reduce the risk to completely fail and allows you to readjust your aim when problems arise.

8% net royalties for a game is good. From what I have heard before, it was around 2.5% for board games. In the book industry 10% goes to the author. So asking for more is a bit ridiculous.