The Financial Reality of Gaming Development

GAMING DEVELOPMENT The Financial Reality Behind Great Ideas I PROFITBRICKS et he laas-Comoany. How much did your favorite game cost? =SIO MILLION =1 MILLION COPIES DONKEY KONG FINAL FANTASY VII w HALO 3 200r Oead Earrut. ID000J0D0D0000 S60 MILLION PRODUCTION AND MARKETING s100,000 PRODUCTION COST jao12 allalin -, D SOLD 1.13M COPIES $45 MILLION PRODUCTION $100 MILLION MARKETING panIR triaton - 61 R1 mftten pmdention, a142.74 alion marketing] SOLD 9.72M COPIES SOLD 11.74M COPIES STAR WARS THE OLD REPUBLIC 201 ASSASSIN'S CREED 1007 GRAND THEFT AUTO 4 sna J0000000 $20 MILLION PRODUCTION $200 MILLION PRODUCTION $100 MILLION PRODUCTION SOLD 10.53M COPIES SOLD 2.56M COPIES SOLD 20.63M COPIES BREAKDOWN OF HOW A $10 MILLION BUDGET IS USED Where does the money qo? 1. DESIGN / ART (1VN ................. 25% Prodiser, dangreR, armsta -- 20% Progamnes, evel destgnen. BUIRI HI eca, leete 2. ENGINEERING / PROGRAMMING 2MILM 3. RETAIL juMON 20% 4. CONSOLE MANUFACTUREER FEE $1.15MUO 11.5% Ecpendng on the game merkeling can CIMttwi mach a pdation 5. MARKETING K0 **************-**-------- 1% 6. MARKET DEVELOPMENT FUND sE0 -------- 5% 7. MANUFACTURING COSTS s0 ........ 5% 8. LICENSING 30 .--------------------------.. 4% Ebe gamea based oll of pra-cdatng nomont, 9. PUBLISHER PROFIT E ------------------ 1.5% 10. DISTRIBUTION scam .....-................. 1% ------ .----- CLOUD IN THE PLAYING Games are shifting to cloud-based servers SIMCTY • The servers weren't able to handie all the people. • Mary were notable to play their games since Simcity can orly be played in the dloud • Intil game ralings nfieciad ser frustralon launched in Harch EE AP OOrigin ER Ganes offers their well known ganes Fife. rekin, M. PLBI through online service Origin. Pomere by S reUMEURLINS Square Enix offers ganes through online service Core HITMAN COREONLINE Online. PROST CONS Games can be accessed instantiy. Streaming a game can use up to 5 gigabytes an hour. Easier integration into tvs and computers. Spotty connections or busy servers cause lag. Cuts out maintenance. Gameplay lost if servers have o problem or undergo maintenance. Games don't take up physical space. Or get lost. ....***..... .. TYPES OF FUNDING GOVERNMENT FUNDING Games must be "for people and society" ie, public work Grants up to 520ok If you're okay with not seeing a dime from your finishod project and playing by the rules, this is the funding for you CROWD FUNDING Can sustain small, medium, and large All-or nothing; if you den't reach your financial goal, you get nothing project financlal goals A great way to earn the money you need and involve the public PUBLISHER FUNDING Publisher cuts doesn't leave much The publishers take the hnanclal tisk money for the game developer For projects already well on their way, big teams, and experienced developers who know their way araund the proverbial business kitchen SELF-FUNDING May cost hundreds of thousands of dollars out of pocket 100% Creative control Good for startups, but rarely makes it to the finish line "If you can live for three years at your Mom's house, you can make a game for free." - Jonathan Blow CLOUD COMPUTING 2.0 IS HERE! PRESENTED BY To learn nore abcut the fastest, most flexible and pasiest to use Clauc Corputing Iaas services available please visit: PROFITBRICKS L The laas-Company. www.profitbricks.com Suvre hetp wkotbren/ rapd oo-eosts trehex ano 1710repredupme d 7 h er perd soweoud pnngiaont derinonent hrte ikpedorawae gamo dewlagmentmduee htpwwstnaoartce21and ng-krgame-prcta ahauT cad-amryllund N NOWSOURCING htp/uww.qchets.om .origaucum