You have recently started a small card game business, Magic Games. Your number-one tabletop card game, Worlds Apart, has become a best-selling card game in the United States. In an effort to grow the brand and gain visibility, you have decided to contract a French mobile app development company, iNovate, to design and develop a digital version of the game.

As the owner of an up-and-coming gaming company, you want the most visibility for your game. You have a total of $200,000 to invest in the digital game, which you raised from a crowd- funding campaign. You are willing to share with iNovate the profits. You plan to charge $3.99 for game on the iPad and iPhones.

During negotiations with iNovate, they asserted they will only develop an iPad version of the game as they believe the budget you've proposed will not cover the iPhone version, specifically the graphics. They worry that their reputation will suffer if they make product that does not meet their high standards.

You have already explained that gamers will tolerate less optimal images and that there is the potential for profits from sales of digital games on smartphones. After all, your market research has shown that most of your customers own smartphones, not iPads and they are expecting a game they can play on their phones. Furthermore, you feel confident that iNovate will be able to recoup revenue from future sales.

1. Who are the parties involved in this negotiation?

2. What are each of the parties' interests and preferences? Consider the long-term interests in your response. Be sure to consider both your interests and those of your counterparts.

3. What are some possible options (solutions) that would maximize joint gains? Include at least one solution.

4. What are your alternatives to a negotiated agreement?

5. What is your BATNA? How can you maximize your BATNA?

6. What is your counterpart's BATNA? How might you use their BATNA in your favor? In other words, how might THEIR BATNA negatively affect THEIR business?