U6 Lesson 5


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U6 Lesson 5

  1. 1. Course Reps – Big News<br />GS9-1: Robert Laird<br />Deputy Rep: Matt McKirgan<br />GS9-2: Peter Salt<br />Deputy Rep: Cameron Foster<br />GS9-3: David Correia<br />Deputy Rep: Jessica May<br />
  2. 2. MCM Expo – This Saturday<br /><ul><li> No signed RSVP – no trip!
  3. 3. Make sure you bring money
  4. 4. Coach leaves at 8am sharp!</li></li></ul><li>Budapest Trip<br />DEADLINE DAY!<br />Got passport?<br />
  5. 5. Induction Assignment<br /><ul><li> Marking Forecast
  6. 6. Classic Mistakes
  7. 7. Plagiarism</li></li></ul><li>Understanding Funding and Finance<br />19 October 2009<br />
  8. 8. Aims & Objectives<br />Aims<br />To introduce you to the importance of planning and preparing for budgets and budgeting in game development<br />
  9. 9. Aims & Objectives<br />Objectives<br />All students will be able to create 1 spreadsheet breaking down costing for a computer game development <br />Most students will be able to identify 2 key areas of funding for games<br />Some students will be able to present 3 sources of funding for a computer game<br />
  10. 10. Why Am I Teaching This?<br /><ul><li> Next term you will be presenting a whole games pitch to a member of the games industry
  11. 11. You must understand the types of costings and funding involved in game development in order to work in the industry
  12. 12. You should be able to cost your own game at least twice over the 2 years</li></li></ul><li>Funding Part I<br />
  13. 13. Funding Part I<br />You’ve got a good idea – NOW WHAT?<br />Do you:<br />Document your idea (this is called a business plan)<br />Talk about it a lot – have a few pints and forget about it because it’s too hard<br />Borrow money, do stuff and generally get cracking?<br />If you answered a) – you rock!<br />
  14. 14. Funding Part I<br />What is a Business Plan?<br />Activity: Put the following words in some order of what a business plan is....<br />
  15. 15. Rationale <br />Organisational Structure <br />Management<br />company biography<br />Personal HISTORY<br />Mission Statement <br />Finance<br />Business Strategy <br />Potential income<br />Potential spend<br />Business category<br />
  16. 16. Answers<br />Business category<br />Business Strategy <br />Rationale <br />Potential income<br />company biography<br />Potential spend<br />Finance<br />Mission Statement <br />Personal HISTORY<br />Management<br />Organisational Structure <br />
  17. 17. Why Bother?<br />Funding can be obtained from a variety of sources, all of whom require a business plan<br />Business Plan<br />Loan <br />Grant Funding<br />Investor<br />
  18. 18. The Loan<br />Definition: a bank loan granted for the use of a business <br />Source: wordnetweb.princeton.edu/perl/webwn<br />
  19. 19. The Investor<br />My favourite!<br />Definition: Normally individuals looking to invest their own capital. Also known as White Knights or simply Private Investors<br />Source: http://www.beerandyoung.com/glossary.php<br />
  20. 20. Grant Funding<br />Definition: any monetary aid<br />Source: http://www.google.co.uk/search?hl=en&q=define%3A+grant+&meta=<br />
  21. 21. Useful Sources of Funding or Information<br />Business Link<br />www.j4b.co.uk<br />Our Library!<br />EMDA<br />EM Media (located in Antenna – Next Door)<br />
  22. 22. Funding Part II<br />What are tax breaks?<br />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.<br />Source: www-personal.umich.edu/~alandear/glossary/t.html<br />
  23. 23.
  24. 24. Research<br />Nearly 75 percent of gaming executives in the UK think that a tax credit would allow them to pursue more original IP.<br />Source: TIGA<br />Discuss what that means to you as potential designers/developers<br />
  25. 25. Activity<br />Discuss beneficial factors in making a game with tax credits (breaks)<br />Time: 5-10 mins<br />
  26. 26. Possible Answers<br /><ul><li> More money to spend on development!
  27. 27. More staff (and resources)
  28. 28. Potentially better distribution channels</li></li></ul><li>Game Funding<br />Activity: What costs should be taken into account when finding funding for a game?<br />Time: 5-10 mins<br />
  29. 29. Game Funding<br />It’s hammer handout time!<br />
  30. 30. Costing What You Need<br />The list you made earlier carries cost. For instance:<br />
  31. 31. Your Bungie Breakdown...<br />Could look a bit like this:<br />
  32. 32. 10 Most Expensive Video Game Budgets Ever<br />1. GTA IV<br />$100, 000, 000 (that’s $100m)<br />$70, 000, 000<br />2. Shenmue <br />$70-100, 000, 000<br />3. Too Human<br />Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/<br />
  33. 33. 10 Most Expensive Video Game Budgets Ever<br />4. Metal Gear Solid 4<br />$50-70, 000, 000<br />5. Halo 3<br />$60, 000, 000<br />6. APB MMO<br />$50, 000, 000<br />Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/<br />
  34. 34. 10 Most Expensive Video Game Budgets Ever<br />$50,000,000<br />7. Tom Clancy MMO<br />8. Killzone2<br />$40,000,000<br />$40,000,000<br />9. Final Fantasy XII<br />10. Final Fantasy IX<br />$40,000,000<br />Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/<br />
  35. 35. Overview<br /><ul><li> We’ve learned the point in planning and preparing business plans
  36. 36. We’ve discovered how we can get funding
  37. 37. We’ve looked at how big some of these budgets are!</li></li></ul><li>Homework<br />It’s tough going as slideshows go, but please read the Pop-Cap games presentation on my blog:<br />Source: Google Images & Raiden Xavier<br />