It's not really DOOM!, however, it
certainly can spell the end of the line for many a would-be
developer, without prior knowledge and forethought. As the average
cost of games made has risen from approximately 1-5million, since
2000, to a staggering average of over 28million, according to M2
research analyst group. (XX).
There comes a time when every developer begins to wonder about the costs associated with developing their own product or app. In particular, costs that go beyond the core basics needed for them to spend the time developing (i.e. Paying the bills, and still put the effort into producing their project in the time they have thereafter). At this point, concerns such as distributions, licensing, overhead, utilities, packaging, outsourcing (if needed), etc., start to crop up. When you're looking at fixed costs, variables, contribution margins, and more, it can be, certainly, overwhelming. With companies and start-ups dropping capital down 29% in 2010, from 2009 figures, The truth is, it's not nearly that scary, or as complex as it sounds, with a little forethought and personal management goals.
Mark Cerny noted at the D.I.C.E.
Summit, that the budgetary concerns of games today, in 2011, are notsustainable – pre-2005 figures, however, would allow continued
sustainability and potential profit margins that are reasonable. So,
then, in an age of ever-increasing monetary concerns, how then, can
people hope to find a common ground? It closer than some imagine –
mobile games. With a decrease in start-up capital, and continued
big-studio development budgetary concerns, mobile apps have become a
more dominating field, and continue to grow. In 2011, Angry Birds,
one of the highest selling mobile games in history, with over 50
million downloads in 2010, alone, was nominated for the Academy of
Interactive Arts and Sciences "Game of the Year" award –a momentous feat. It didn't win, however (Mass Effect 2, steals the
show), but it begged the question – is this viable? The answer is,
a resounding, "Yes." At a development cost reported to be
around 150,000 USD, with those kind of download sales, that's a game
with a massive cash flow.
Of course, mega mobile giant, Zynga,
isn't doing so well, but it's competitors are coming up, and the
market for indie mobile products has skyrocketed in just the last
couple of years. Games like Limbo, The Room, Bards Tale, Where's my
Water, Minecraft, World of Goo, Plants vs Zombies, and yes, the
incredible Angry Birds, are leading the way to games across a range
of genres, that re big sellers, with low capital production margins.
To be fair, it's not to say there
aren't costs with producing your own indie app. After all, the typical
start-up cost will often put you in around 10-20 thousand. That can
be a hefty starting fee, certainly, for those strapped. Thanks to the
power of Crowd Funding - potentially raising over 2.8 billion - 91% more than last year - with some time and effort, you can
build some working elements, produce a profile, and potentially get
yourself funded this way. It's worked for a rather great deal of
developers at present.
Ultimately, it's going to be important
to know just what you want your game to do, and features to use.
It'll be important to take the time to invest in determining your
costs, and margins needed to break even, or even make a profit.
Knowing this, helps you to know what you really need, and where
you're really heading. Once you're there, the crossroad starts
looking a whole lot straighter.
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