Iam8bit is to Sue Skybound Games

Drama

09 December 2025 13:53

Merchandise company iam8bit has taken publisher Skybound Games to court, accusing the firm of fraud and several contract violations. The lawsuit was filed in the Superior Court of California in Los Angeles County.

According to the complaint, iam8bit says Skybound ran what it describes as a long term accounting scheme. The filing states that Skybound did not deliver the monthly financial reports required in their agreement and also added millions of dollars in expenses that iam8bit believes were not real.

The company says it hired an outside auditor to review Skybound’s financial statements. That review cost about 4 million dollars.

The lawsuit also claims Skybound interfered with a deal related to the popular indie game Stray. iam8bit says Skybound used confidential royalty information from its work with Annapurna, the game’s publisher, to cut iam8bit out of a deal for the Nintendo Switch version. The suit also accuses Skybound of copying iam8bit’s marketing designs.

In the court filing, cited by Law360, iam8bit says Skybound made a secret agreement with Annapurna and hid it from its partner. The complaint argues that Skybound misled iam8bit while planning to take over the work and use its creative materials.

The two companies began working together in April 2021 to produce physical editions of indie titles.

Founded in 2005, iam8bit is known for video game vinyl soundtracks, clothing, art, and other collectibles. The company also runs the Play Days event at Summer Game Fest and launched its iam8bit Presents publishing label in 2022.

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Tags: Iam8bit Skybound Games

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