"Borderlands 3" sold 5 million copies in its first five days of release, making it the fastest-selling hit in publisher 2K Games' history. Despite its success, however, multiple sources told Kotaku that Gearbox employees will receive far fewer bonuses than expected.

According to the report, which cites multiple anonymous employees, Gearbox pays below the industry average, but offers a profit-sharing arrangement in exchange: when "Borderlands 2" was a huge success in 2012, huge profit-sharing payments were made . This was something Gearbox "often advertised when recruiting new employees," Kotaku said.

Yesterday, however, Gearbox boss Randy Pitchford told employees that bonuses for this quarter will be smaller than expected due to an expanded workforce and higher development costs. According to him, the production cost of "Borderlands 3" is about $140 million (including DLC), an amount that Gearbox will have to pay back to publisher 2K before receiving royalties.

To be clear, this is typical of game publishing agreements: the publisher must recoup its investment before paying royalties to the developer. For example, Epic Games' new publishing deal has the same requirement: the fact that Gearbox is now receiving royalties means that "Borderlands 3" is now profitable, but apparently not as much as expected.

Unsurprisingly, Gearbox has a different take on the disappointment, stating in a statement to Kotaku that its profit-sharing program has paid out "more than $100 million in royalty bonuses to employees above their traditional compensation."

"In the most recent pay period, Gearbox personnel participating in the royalty bonus system, with Borderlands 3 officially becoming the most profitable video game, earning more than the company's largest ever investment in a single video game have enjoyed the news that they have earned their first royalty bonus on their profits," Gearbox said.

"In addition, a forecast update was provided to Gearbox talent participating in the loyalty bonus to set expectations for future quarters... Gearbox is a private company and does not generally make forward-looking statements, but we do but we practice transparency within our own ranks."

A lawsuit filed against Pitchford in 2019 drew attention to the way executive compensation is handled within the company. In it, former Gearbox general counsel Wade Callender alleged that Pitchford negotiated a $12 million "executive bonus" for himself with Take-Two Interactive that counted as an advance on Gearbox royalties, according to Kotaku, the bonus was repaid with a 60 percent profit share for the company, rather than 40 percent for the employees.

Still, the image of Pitchford earning an eight-figure bonus while Gearbox's staff is paid far less than expected despite being a "billion-dollar global brand" is not a pretty one, and some employees told Kotaku that widespread resignations are likely.

The full report can be read at Kotaku.