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September 03, 2006

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This is uncannily in line with much of my activity over the past week, and to a lesser extent over the past month.

First thing you need to do is scale down the costs, your talk on Ninja design and wicked space; with the right people and ten thousand dollars you can do an R&D cycle that not only adds to innovation in non-trivial ways (and allows for broader market potential) but greatly streamlines the way content is used and the subsequent needs of the production. In other words, not only is innovation a near requisite to competetive advantage, but it can often decrease costs dramatically as well. There are exceptions to this, but they largely come in high-end conflations of what were originally tiny prototypes.

So if you can produce something interesting with 100k, something that can sell to at least a niche audience (with higher budgets and sales potential in subsequent release iterations) then its possible for investors to distribute their risk over a number of projects. The smaller the scale the fewer unit conversions are needed to return on the loan. In the venue context of online distribution using guerilla, or even saturation marketing via the internet, the margins are forgiving enought that only 7-10 thousand sales are needed to break even.

Its really an exciting time.

And I haven't even gotten into all the non-commercial funding channels for more avant-garde ideological games.

Great talk! @futureplay. Finally someone thinking outside of the box. Too bad most decisions in the game industry are made by business people that only want to crank out more copycat products, sequals and addons. But then again seeing the amount of money its costs to create a game this point of view is understandable.

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