I can just reiterate what has been said before really
1. PhDs are only really required if you want to work in high level research or lecture – most game jobs don’t require them and in fact since PhDs usually involve a lot of solitary work they may think you are not suited to team work because of it..
2. There is a lot of valuable experience here on these forums and people who have experience working in game companies and trying to set them up. We don’t want to put you off but set realistic goals for yourself and talk to those who have tried it already. Could save you a lot of time and expense..
Excellent advice as always. Bear in mind also that “game development” is a very broad definition covering everything from AAA console game development to mods for classic games, to online downloadables to freeware/shareware etc. There is always space for the smaller developer – the hard part is translating what you do into cash. I know many game developers strongly advise small teams to focus on mod development initially – it can involve coding, art, design but also planning, development and deployment and demonstrates a strong results oriented team.