Gaming collectible purveyor iam8bit is suing publisher Skybound over alleged fraud related to cat sim Stray

Stray launch trailer still
(Image credit: Annapurna Interactive)

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.

2025 gamesBest PC gamesFree PC gamesBest FPS gamesBest RPGsBest co-op games

2025 games: This year's upcoming releases
Best PC games: Our all-time favorites
Free PC games: Freebie fest
Best FPS games: Finest gunplay
Best RPGs: Grand adventures
Best co-op games: Better together

Associate Editor

Ted has been thinking about PC games and bothering anyone who would listen with his thoughts on them ever since he booted up his sister's copy of Neverwinter Nights on the family computer. He is obsessed with all things CRPG and CRPG-adjacent, but has also covered esports, modding, and rare game collecting. When he's not playing or writing about games, you can find Ted lifting weights on his back porch. You can follow Ted on Bluesky.

You must confirm your public display name before commenting

Please logout and then login again, you will then be prompted to enter your display name.