Course Reps – Big News GS9-1: Robert Laird Deputy Rep: Matt McKirgan GS9-2: Peter Salt Deputy Rep: Cameron Foster GS9-3: David Correia Deputy Rep: Jessica May
MCM Expo – This Saturday
No signed RSVP – no trip!
Make sure you bring money
Coach leaves at 8am sharp!
Budapest Trip DEADLINE DAY! Got passport?
Understanding Funding and Finance 19 October 2009
Aims & Objectives Aims To introduce you to the importance of planning and preparing for budgets and budgeting in game development
Aims & Objectives Objectives All students will be able to create 1 spreadsheet breaking down costing for a computer game development Most students will be able to identify 2 key areas of funding for games Some students will be able to present 3 sources of funding for a computer game
Why Am I Teaching This?
Next term you will be presenting a whole games pitch to a member of the games industry
You must understand the types of costings and funding involved in game development in order to work in the industry
You should be able to cost your own game at least twice over the 2 years
Funding Part I
Funding Part I You’ve got a good idea – NOW WHAT? Do you: Document your idea (this is called a business plan) Talk about it a lot – have a few pints and forget about it because it’s too hard Borrow money, do stuff and generally get cracking? If you answered a) – you rock!
Funding Part I What is a Business Plan? Activity: Put the following words in some order of what a business plan is....
Rationale Organisational Structure Management company biography Personal HISTORY Mission Statement Finance Business Strategy Potential income Potential spend Business category
Answers Business category Business Strategy Rationale Potential income company biography Potential spend Finance Mission Statement Personal HISTORY Management Organisational Structure
Why Bother? Funding can be obtained from a variety of sources, all of whom require a business plan Business Plan Loan Grant Funding Investor
The Loan Definition: a bank loan granted for the use of a business Source: wordnetweb.princeton.edu/perl/webwn
The Investor My favourite! Definition: Normally individuals looking to invest their own capital. Also known as White Knights or simply Private Investors Source: http://www.beerandyoung.com/glossary.php
Grant Funding Definition: any monetary aid Source: http://www.google.co.uk/search?hl=en&q=define%3A+grant+&meta=
Useful Sources of Funding or Information Business Link www.j4b.co.uk Our Library! EMDA EM Media (located in Antenna – Next Door)
Funding Part II What are tax breaks? Any provision of the tax code, such as a tax credit or tax deduction, that reduces the amount of tax that a firm or individual will pay. Source: www-personal.umich.edu/~alandear/glossary/t.html
Research Nearly 75 percent of gaming executives in the UK think that a tax credit would allow them to pursue more original IP. Source: TIGA Discuss what that means to you as potential designers/developers
Activity Discuss beneficial factors in making a game with tax credits (breaks) Time: 5-10 mins
More money to spend on development!
More staff (and resources)
Potentially better distribution channels
Game Funding Activity: What costs should be taken into account when finding funding for a game? Time: 5-10 mins
Game Funding It’s hammer handout time!
Costing What You Need The list you made earlier carries cost. For instance:
Your Bungie Breakdown... Could look a bit like this:
10 Most Expensive Video Game Budgets Ever 1. GTA IV $100, 000, 000 (that’s $100m) $70, 000, 000 2. Shenmue $70-100, 000, 000 3. Too Human Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/
10 Most Expensive Video Game Budgets Ever 4. Metal Gear Solid 4 $50-70, 000, 000 5. Halo 3 $60, 000, 000 6. APB MMO $50, 000, 000 Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/
10 Most Expensive Video Game Budgets Ever $50,000,000 7. Tom Clancy MMO 8. Killzone2 $40,000,000 $40,000,000 9. Final Fantasy XII 10. Final Fantasy IX $40,000,000 Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/
We’ve learned the point in planning and preparing business plans
We’ve discovered how we can get funding
We’ve looked at how big some of these budgets are!
Homework It’s tough going as slideshows go, but please read the Pop-Cap games presentation on my blog: Source: Google Images & Raiden Xavier