Understanding of commercial development environment/start-up opportunities/IP issues
Making Money
•You need to think how you or the company you work for makes it’s money
•Traditional Publisher Model
•Self-Publishing
•Aggregators
•Retail/Digital Distribution
Retail
•Selling boxed product at places like Game, Gamestation or HMV. Or indie and online.
•The gap in the market is “same day” physical delivery of games too big to download or 1st
party titles (basically combining online & bricks and mortar in one solution.)
•Future of this space is pre-paid cards as the consoles will (in the future) go online only. Retail
(to make it worth selling the hardware) will need a cut of the software sales. Hence prepaid
cards.
•To drive users to retail, the making of special “enhanced” versions just for the retail chain will
be a common practice.
Digital Distribution
•Direct download, direct to consumer
•Like Steam service from Valve Software, the PlayStation Store or Xbox Live Arcade from
Microsoft.
•This also technically includes “unlocking” access to a game already on a service, like the
faux install process on Facebook (however the player would have to pay to do this unlock.
“Free” Business Models
•Free to Play
•Subscription
•Micro-transactions
•Freemium
•In-Game Advertising
•Other…
–In-game minutes
–Mobile applications
Intellectual Property
•IP is considered the key asset for the majority of games companies
•Owning your own IP is generally what makes companies worth $$$
•Often difficult to retain it if you are working for a publisher
•Often difficult to protect your IP (or at least it is without spending $$$)
Major IP Issues
•Atari v Magnavox and Pong
•Limbo of the Lost - stole from Oblivion, Morrowind, UT2K4, Diablo, Silent Hill, and many
more...
•Zynga – Mark Pincus allegedly said:
"I don't fucking want innovation. You're not smarter than the competitor. Just copy what they
do and do it until you get their numbers"
What’s an Idea Worth?
•Theoretically – Loads, the right idea implemented at the right time will make a fortune e.g.
Facebook, Farmville, Minecraft
•These are the exceptions
•Realistically – You can’t copyright an idea, specifically you can’t actually patent game rules
in European Law.
What’s the aim?
•The reason most companies have a clause that says everything you do is owned by the
company...is just in case you have that big idea
•The ultimate aim of owners/investors or shareholders is a financial return.
–A $50 Million investment is a $50 Million debt.
•But generally until you make it isn’t worth anything
That said…
•As a legal structure, IP is about encouraging innovation. Despite what it may look like
recently, IP is not about control.
•Most innovation isn't entirely new - it builds on existing innovations. You're nearly always,
"standing on the shoulders of giants."
