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This article shows how you can have a very successful game development team, and still find it tough in the games industry to make a substantial profit.
http://www.gamedev.net/reference/business/features/starbreeze/
Mal
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Interesting alright, and it has some good points such as alternative income possibilities from DLC and fostering a community to help improve the company’s brand. He massively underestimates the amount of work that would likely be necessary to license out the game engine though.
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He massively underestimates the amount of work that would likely be necessary to license out the game engine though.[/quote:64477e0c4e]
Agreed, this isnt easy at all. Look at the amount of tech\feature support that goes with it to be successful at it. Also look at the hassle between silicon knights and epic when one party claims they didnt get the contractual support they were supposably getting (prob because GOW or other in house ip’s needed the attention).. one case like this for a starting out engine licenser could be devastating for their business.
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I admire Starbreeze alot, then need to move to stockholm though.
Fair play to them for posting that insight. You wont get rich in games!*
*unless you’re Tony:D
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Knowing very little about the background to the company, and just from reading that article, it sounds like they are a crazy business.
They’ve already brought 2 successful titles to market, for very little reward, what are they doing?
It sounds like they operate in a high risk environment (trying to develop AAA titles), where any one title being a failure will end their business (won’t be as far in the red as if they took all the risk themselves, but still toast).
But the reward to them if they are successful is minimal.
So they take all the same practical risks as every other small games company, but for very little reward..? -
It seems apparent from the comments they make about not earning royalties (even on games that sell well) that they have signed a recoupment deal (http://www.obscure.co.uk/blog/2007/02/26/the-myth-of-the-developer-royalty/) with the publishers. These deals are hopelessly stacked in favour of the publisher. They either need to stop accepting such bad deals or else add profit into their budget and ensure that the game gets finished on time so that the profit isn’t spent funding work on a game that they wont get any benefit from.
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I admire Starbreeze alot, then need to move to stockholm though.
*unless you’re Tony[/quote:eece4648f4]
Why? They’re based in Uppsala!:P
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Uppsala is tiny. Its the Muff of Sweden
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Uppsala is tiny. Its the Muff of Sweden[/quote:7cf9742ca4] You’re kidding right? You’ve obviously never traveled further north![/quote:7cf9742ca4]
North of Ireland or Sweden?
I don’t think Uppsala is anywhere near as bad as Muff ;)
In both case I think its hard to get people to relocate there -
LOL
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