- This topic has 6 replies, 5 voices, and was last updated 17 years, 7 months ago by
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…if you want to make money.
I’ve always thought that any start up in Ireland should not be developing new IP if they want to get started. Get some money in the bank (!) by doing ports\expansions\licensed IP etc.
According to our numbers, the actual success rate of new IP over the past four years is just seven percent. In other words, 93 percent of new IP fails in the marketplace. So while the 90-plus review scores and armfuls of awards create the perception that titles like Psychonauts, Shadow of the Colossus, Okami and other great pieces of work were big successes, the truth is that they were big financial disappointments and money losers.[/quote:d4a1991877]
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The problem is though acquiring existing IP for games, especially as a start-up studio, companies who have their own established IP are unlikely to license it to a new company with no portfolio to show them.
So in order for a company to get the trust of bigger companies, they have to establish their own IP, likely at a loss, before they will be entrusted with other’s. -
If you have a strong experienced team with and a good business plan that can swing things in your favour. An inexperience start-up is going to run into alot of problems (own IP or not).
I imagine publishers want to see that the team they are giving their money to has actual experience of releasing games (if they are similar to the the IP that the team is pitching for, then bonus).
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93%? that still looks to me like new ip has a better chance of succeeding than a startup.
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:)
Yep, it seems starting a company is one of the bravest and stupid things you can ever do
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to put it simply , where there is a will theres a way . a new ip or not , that company has to do good work , and have bit of luck , but if you manage to make something with a new ip , at least then when, you go looking at getting ip , you can show that have experience. and yea i agree with you kyotokid , that publishers want to see that a team they give their money to have actual experience of realeasing games ,
i can see that as being very important , oh and starting company is easy , starting a company that works and makes money is the most likey the hardest thing in the world lol . thats my opinion anyway.
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As a start up you could be successful without being in the lucky 7% because they are talking about games generating profit on sales. A smart start up would make their money on the development cost and not expect to make any money on royalties. However, even on small projects, it is taking around six months to negotiate a contract and that time doesn’t even start until your demo is done, has been pitched and the publisher has decided they want it. Best part of 12 months to get an original game signed.
Best start up strategy is to do outsourcing for other larger developers. That money can tied you over while going through the original IP pitching process.
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