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starting a games company

Ruz
polycount lvl 666
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Ruz polycount lvl 666
how much cash do you think you need to start a small games company
Would it a be a stupid idea in todays climate?
just looking for lots of opinions here.

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  • oXYnary
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    oXYnary polycounter lvl 18
    you would have to define what type of small game company. Cellular? Handheld? Online/Flash/Director/Java?
  • JKMakowka
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    JKMakowka polycounter lvl 18
    Go to the Isle of Man wink.gif
  • Kovac
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    Kovac polycounter lvl 18
    I know someone in the field will be able to help you a lot more thuroughly than myself but I'll throw out a few bullets:
    -What skills do you have in creating games - in a small game company the more you can do the less you'll have to pay others to do it for you.
    -It's always a stupid idea to start a company games related or not in my opinion- stupid ideas can become some great inventions; you just have to be willing to take the risk.
    -I'm sure the games market for indie companies hasn't changed much over the years, it's simply if your product is good, it will sell, no matter what's going on in the world (kids aren't effected by the economy, and people don't seem to be set back so far right now that they can't buy their kids video games).
    -As far as how much you'll need, I have no clue on the answer, though one can assume: if you want quality be ready to dish out QUITE a big chunk of change.

    I think starting a games company is both a fun but risky thing. I'd hate to shun anyone from trying, though you're a lot more likely with success if you have the proper background (you have skills of your own, you know what you're doing and have worked in the field). If you do take this road I wish you the best of luck though!

    Edit: spelling
  • Ruz
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    Ruz polycount lvl 666
    well I certainly think that it would have to be a product that could be deveopled small scale and rapidly, like a mobile phone/ online game in the style of yeti olympics.

    JKMakowka - Why the isle of man?
  • okkun
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    okkun polycounter lvl 18
    Figure about 50-100k USD before you even get started.

    Then add however many months of running costs, salaries, sent, Coke & Redbull you'd need until you think you're going to get signed, then double it twice and you'll get close.
  • Mark Dygert
    The isle of man has special breaks and benefits for fledling game companies. I believe they eat a BUNCH of the start up cost for you if you relocate to their lil rock.

    http://www.isleofman.com/finance/why_iom/

    I would say you should plan to have enough cash to float your first three titles. This way you are not at the mercy of a publisher, well not as much anyway.
  • Rick Stirling
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    Rick Stirling polycounter lvl 18
    based where? Premises.
    For what platform? Devkits
    How many staff? Hardware and software licensing, social aspects like healthcare, pensions, tax contributions.

    A company that I worked at at one point was pissing away just over a million quid a month on staff, premises etc. There were about 60 people there.
  • Ruz
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    Ruz polycount lvl 666
    chees for that vig, very interesting.
    Rick, i think thats jumping the gun a bit. i think being a sensible tpye, if I were to start a company it would be very small scale, ie mobile/online games. this would require minimal investment at first and would act as a way of testing the water wihout actually getting your feet burnt
  • Rick Stirling
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    Rick Stirling polycounter lvl 18
    To be more encouraging:

    Figure out a few little ideas and develop them as best you can yourself. Get some solid designs on paper. Try and find a coder who is interested in developing one, and get a quick prototype done with stand in graphics. You can easily get a simple game up and running in a week or so - especially if you use an existing engine as a test bed/sandbox.

    This will let you see if the game is fun. If so, continue.
  • Ruz
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    Ruz polycount lvl 666
    sounds like a good idea to me Rick. You see, I did do proper 3d games demo a while back, but to be honest a quick java game would be better just to get something up and running quick.

    i did hear somewhere that there is plenty of money to be made in this type of game( mobile games/online stuff)
  • Slayerjerman
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    Slayerjerman polycounter lvl 18
    I could go into serious detail as MY game studio opens in October. In fact I just got back from signing the lease on the office.

    Points of Interest:

    1) It is MORE than a job, it is a lifestyle. Be prepared to make sacrifices, this is true for any business.

    2) Every business is scalable. Determine your "wants" then let reality sink in and figure your "needs".

    3) It takes money to make money. You need a strong business plan, tight budget, supportive friends/spouse/staff/family who you can maybe even ask for a small capital investment.

    4) Timing is key. You need to position yourself and your company when costs are low and demand is high. In the games biz the demand usually occurs around Nov~Dec and June~July.

    5) Research and ask questions. The best thing you can do is ask anyone and everyone questions and do alot of research on everything involved.

    Ok I could go on forever, but you need to figure everything out for your self.

    A GREAT resource is the IDGA www.idga.com as well as Gamasutra...Also you should look at the legal aspects of starting a business in your state.

    Good luck ;-)
  • MoP
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    MoP polycounter lvl 18
    Slayerjerman's link should be pointing to www.igda.org , but he's on the right track! smile.gif
  • parasyte7
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    parasyte7 polycounter lvl 19
    Hey Ruz about starting your company you should look into the GamesDevKit from Tom Buscaglia. He is a big game attorney that speaks at gdc and many other conventions. He is also on the Board of the IGDA. The kit includes all the contracts that are needed and has many documents with step by step how to start a game company. He is also a great person to call and talk to about games and starting a games company. Here is a link to the kit: http://gamedevkit.com/. Tell him Kenny Sent you.
  • Slayerjerman
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    Slayerjerman polycounter lvl 18
    We bought the legal kit, its very informative, but by the time we bought it we had 80% of the information already. smile.gif

    yeah...(dot)org god i feel dumb
  • okkun
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    okkun polycounter lvl 18
    I think the best thing you can do is start small, think long term and be prepared not to take a salary for a very long time. Slayerjerman is absolutely right, it's a lifestyle.
  • Rhinokey
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    Rhinokey polycounter lvl 18
    hmm isle of man, aint that the place where they run around naked and burn people in giant wooden statues like that "wicker man" movie ?
  • Gmanx
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    Gmanx polycounter lvl 19
    [ QUOTE ]
    hmm isle of man, aint that the place where they run around naked and burn people in giant wooden statues like that "wicker man" movie ?

    [/ QUOTE ]

    .....ahem.

    I've just moved from TV animation to a games publisher/developer called IncaGold plc which has opened new offices here. I've been freelancing for them for about a year before that, and they're happy enough with the Govt incentives. Come on over, leave your clothes and bring plenty of straw.
  • Eric Chadwick
    Just wanted to say... beware trying to start with a mobile game, from all I'm hearing they're actually a bitch to do right now. Compatibility is the biggest problem. Brew (dev platform) helps a lot but still the hardware is all over the place.
  • Snowfly
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    Snowfly polycounter lvl 18
    All the handset manufacturers are trying to be the dominant platform right now, so you can dedicate yourself to one or two platforms and you'll be alright. My picks are Nokia and Sony Ericsson, they are the most aggressive with consumer content and they both looove games.

    If you decide to go Palm/Pocket PC, check out www.game-editor.com. They have some nice middleware for PPC that costs $15.

    Marketing mobile games is a bitch. Actually, dealing with telcos is a bitch. Negotiate for inclusion in their stable for a few months, and the most exposure you get is a 'What's New' listing on their WAP sites. Every country is a brand new negotiation. Ever try dealing with non-English speakers on a monthly basis? Unless you're prepared to spend on your own publicity, online market places are your best bet (i.e. Handango, and another upcoming one I forget the name of that's dedicated to Symbian games)

    Hey the best thing about mobile games is all the tools you need are free! Borland C++ Builder, GraphicsGale, etc. If you try to port your games to as many platforms as possible, you'll spend a lot trying to keep your handsets updated. Some companies like to focus on the game design, build for one platform, and farm out the porting.

    Just some advice from a 'seasoned pro', heh. I've been in mobile games for 1 1/2 years, made it to senior artist, and I'm moving on to PC (finally!) Thought I'd share what I think I know.
  • Eric Chadwick
    Good intel, thanks.
  • hawken
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    hawken polycounter lvl 19
    [ QUOTE ]
    [ QUOTE ]
    hmm isle of man, aint that the place where they run around naked and burn people in giant wooden statues like that "wicker man" movie ?

    [/ QUOTE ]

    .....ahem.

    I've just moved from TV animation to a games publisher/developer called IncaGold plc which has opened new offices here. I've been freelancing for them for about a year before that, and they're happy enough with the Govt incentives. Come on over, leave your clothes and bring plenty of straw.

    [/ QUOTE ]

    heheh
    http://hawken.dadako.com/work.history.babel.php?page=incagold2
  • Rick Stirling
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    Rick Stirling polycounter lvl 18
    A quick question - WHY do you want to start one?
  • Snowfly
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    Snowfly polycounter lvl 18
    That's a good question. smile.gif You could try doing a few Pocket PC games with a couple of friends informally.. sell them for $20 (a lot of PPC users are willing to fork out that kind of cash for "mobile games"). Quick way to make a few thousand bucks extra for a couple of months...
  • notman
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    notman polycounter lvl 18
    haha, you must be one of the Pocket PC users wanting games with how much your pushing it wink.gif

    But I agree, I had a Pocket PC and I wished at the time that there were more games. Then again, I didn't want to pay for any of them wink.gif
  • Snowfly
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    Snowfly polycounter lvl 18
    Nice guess, but no. smile.gif Actually I work in a mobile games company, and there is some market research done here.. PPC is a platform we'd been planning to target but never did, and now that I'm going indie, I see it as the most profitable.
  • notman
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    notman polycounter lvl 18
    See, I thought it was going the other direction. Seemed like Pocket PC software was going more in the direction of the medical fields (for patient info) and various fields like that. Games for the Pocket PC got clearanced out at all the stores around here. Seemed like the market was going away :/ I guess that doesnt mean that the demand did though.
  • Ruz
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    Ruz polycount lvl 666
    Rick I would want to start games company because I enjoy games and like a challenge too.
    I suppose a certain level of creative freedom is attractive too.

    I have head full of ideas , but rarely get the chance to explore them

    I hope this is not a trick question., like I should have said its because I want to be millionaire or something.

    Anyway, some great responses and interesting info coming out in this thread.
  • Ramucho
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    Ramucho polycounter lvl 18
    Making indie games is very cool, i'd like to try too someday;
    btw here are some cool websites:

    http://indiegamer.com/
    http://tigsource.com/
  • Slayerjerman
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    Slayerjerman polycounter lvl 18
    Be prepared for a shitstorm of work smile.gif
  • Daz
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    Daz polycounter lvl 18
    Most of us in the business have a shitstorm of work anyway.

    Might aswell do it for yourself rather than 'the man'.

    Good luck Ruz in whatever you decide. A word of advice: don't go in with a bunch of mates just 'cos you like hanging out. I've seen that a lot especially in the days of 6 or 7 years ago when several small co.s started to offshoot from Bullfrog as it was being bought out by EA. Set up with people for their skills. People with talent, dedication and experience.
  • Leech
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    Leech polycounter lvl 18
    Ruz, I have two serious points I would need before considering starting my own company:

    1) Be part of something successful.

    If you are going to produce for consoles, you are going to need a publisher. You can avoid this step with PC games, but with consoles it's critical. These guys are going to be giving you money, to create a game for them. They are going to evaluate your company, your team and you personally before handing over any amount of money. If you have been part of just one successful project, convincing a publisher to back you will be easier than if you worked on a series of lackluster titles. Think about it this way, you have 10 million dollars to finance a developer to produce a game for you.

    Company A is lead by two industry veterans who worked on the original EverQuest as the lead network programmer and lead quest designer.

    Company B is lead by two industry veterans who worked on various budget RPG titles as environment artists.

    Company A clearly has a shot at securing some funding based off of one title. Company B is going to have a tough time.

    2) Decide on a project that has a market and the potential to sell.

    Should be a no-brainer, but I've known tons of people who started companies based on a idea they've had for years. Unfortunately, the idea is usually so artsy and disconnected from anything that sells, no one bites. Usually companies lead by artists have this problem (on a side note, can you name some powerful developers lead artists?)

    There is no shame in doing a game you think is going to sell but isn't your first choice, because if it does, it might buy you that chance to make the game you've always wanted to do.

    If you don't see a title on the shelves that isn't like the project you are thinking about making - there is a reason for that. Publishers are not paying developers to make those games.

    Good luck.
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