Co-development in the video game industry often fails due to leadership avoidance, weak systems, and misalignment, not external factors like geography. Key reasons for failure include spec creep stemming from unmade decisions, the false economy of prioritizing cheapness over quality, and treating partners as mere "hands" instead of leveraging their experience. Effective co-development requires robust infrastructure for real-time visibility and trust, and it must be led by experienced individuals with the authority to make critical decisions. Ultimately, successful co-development is about orchestration and earned trust, not just outsourcing tasks.