The State of Game Development 
Wanda Meloni 
M2 Research 
Casual Connect 
San Francisco, July 24, 2014 
@WandaMeloni 
@M2Research
M2 Partners - What We Do 
Communicate 
•Trends 
•State of the Industry 
•Case studies 
•Best practices review 
Consult 
•Market Positioning 
•Market Strategy 
•Project Management 
•Tactical Market 
•Leadership Management 
•Distribution 
2 
State of Game Development 
Connect 
Network 
Events
3 
STATE OF GAME DEVELOPMENT 
2014
4 
Growth of Indies 
Content 
Development 
Diversity 
1 
2 
3 
4 
State of Game Development 
Changing Landscape
5 
GROWTH OF INDIES
Film 
•1919- United Artists 
•1981 – Sundance Film Festival 
•2010 – 42% of US box office revenue comes from Indie titles 
•Crowdfunding 
6 
State of Game Development 
Music 
•1950s – Start of indie music 
•1970s – National Association of Independent Record Distributors 
•2013 – 510% increase in indie musicians making their living 
•Apple – over 16 billion songs sold through iTunes 
Games 
•1995 – first Amiga games 
•2004 – Unity founded 
•2005 - IndieCade 
•2008 – Microsoft launches Xbox Live Indie Games 
•2009 – Minecraft launches 
•2014 – Minecraft sold 54 million units and reaches 100 million registered users 
•Crowdfunding 
Source: M2 Research
7 
State of Game Development 
Individual: Part-time/Hobbyist 
Individual: Freelancer 
Individual: Full Time Indie 
Studio: Small Independent with 2 - 24 
people 
Studio: Midsize Independent with 25 - 
100 people 
Studio: Large Independent with over 
100 people 
Studio: Owned by Publisher 
Publisher: Activision, EA 
Other: Services, Academics, Support, 
Media 
Company Description 
62% 
20% 
18% 
Source: M2 Research
8 
Publisher 
Indie 
State of Game Development 
Source: M2 Research
9 
Reasons for Independence 
Source: IGDA Satisfaction Survey 2014 
58% 
56% 
56% 
44% 
33% 
32% 
31% 
15% 
6% 
19% 
State of Game Development
10 
CONTENT
11 
Source: Inmobi, Mobile Gaming Cross-Market Analysis 
State of Game Development 
Consumer Preference by Genre
12 
Developer Focus - Game Genre 
State of Game Development 
51% 
42% 
31% 
29% 
26% 
25% 
23% 
22% 
20% 
16% 
13% 
12% 
12% 
9% 
8% 
8% 
7% 
7% 
7% 
7% 
6% 
5% 
5% 
4% 
4% 
3% 
Source: M2 Research
13 
Developer Focus and Game Genre 
State of Game Development 
51% 
42% 
31% 
29% 
26% 
25% 
23% 
22% 
20% 
16% 
13% 
12% 
12% 
9% 
8% 
8% 
7% 
7% 
7% 
7% 
6% 
5% 
5% 
4% 
4% 
3% 
Source: M2 Research
14 
Consumer Preference by Genre 
Source: Inmobi, Mobile Gaming Cross-Market Analysis 
State of Game Development
15 
Developer Focus and Game Genre 
State of Game Development 
51% 
42% 
31% 
29% 
26% 
25% 
23% 
22% 
20% 
16% 
13% 
12% 
12% 
9% 
8% 
8% 
7% 
7% 
7% 
7% 
6% 
5% 
5% 
4% 
4% 
3% 
Source: M2 Research
16 
DEVELOPMENT
17 
PLATFORMS 
State of Game Development 
Source: M2 Research 
64% 
66% 
64% 
64% 
31% 
23% 
37% 
60% 
23% 
38% 
14% 
8% 
4% 
8%
18 
DISTRIBUTION 
9% 
20% 
11% 
17% 
10% 
2% 
7% 
5% 
5% 
9% 
7% 
10% 
14% 
9% 
16% 
19% 
2% 
4% 
8% 
8% 
5% 
5% 
Currently 
In 12 Months 
State of Game Development 
Source: M2 Research
Development has Changed 
1900-2000’s 
•Tools very expensive or custom built 
•Specialized high-end systems 
•Cost Millions of dollars to build 
Nicole Stenger, 1992 
Today 
•Unity and Unreal have democratized tools 
•8% of developers doing VR games 
•Cloud-gaming 
Paul Bettner: Playful Corp. – Lucky’s Tale 
19 
State of Game Development 
Source: M2 Research
20 
DIVERSITY
21 
State of Game Development 
Source: IGDA Satisfaction Survey 2014
22 
Sources: Celluloid Ceiling, Game Developer Magazine 
0% 
5% 
10% 
15% 
20% 
25% 
Women in the Film Industry 
0% 
5% 
10% 
15% 
20% 
25% 
Women in the Games Industry 
State of Game Development
23 
State of Game Development 
Source: IGDA Satisfaction Survey 2014
24 
State of Game Development 
Source: IGDA Satisfaction Survey 2014
25 
FUTURE OUTLOOK
26 
State of Game Development 
Growth of Indies 
•More independent studios means more crowded eco-system Content 
•Focus on expansion of genres, game play, storytelling Development 
•Platforms, distribution, development are shifting Diversity 
•More diversity needed to sustain industry 
1 
2 
3 
4
27 
M2 Partners 
wanda@m2research.com 
THANK YOU! 
State of Game Development
References 
State of Game Development 2014, M2 Research 
Developer Satisfaction Report, IGDA – Kate Edwards, Johanna Weststar, Wanda Meloni, Celia Pearce, Marie-Josée Legault 
28 
State of Game Development

The State of Game Development

  • 1.
    The State ofGame Development Wanda Meloni M2 Research Casual Connect San Francisco, July 24, 2014 @WandaMeloni @M2Research
  • 2.
    M2 Partners -What We Do Communicate •Trends •State of the Industry •Case studies •Best practices review Consult •Market Positioning •Market Strategy •Project Management •Tactical Market •Leadership Management •Distribution 2 State of Game Development Connect Network Events
  • 3.
    3 STATE OFGAME DEVELOPMENT 2014
  • 4.
    4 Growth ofIndies Content Development Diversity 1 2 3 4 State of Game Development Changing Landscape
  • 5.
  • 6.
    Film •1919- UnitedArtists •1981 – Sundance Film Festival •2010 – 42% of US box office revenue comes from Indie titles •Crowdfunding 6 State of Game Development Music •1950s – Start of indie music •1970s – National Association of Independent Record Distributors •2013 – 510% increase in indie musicians making their living •Apple – over 16 billion songs sold through iTunes Games •1995 – first Amiga games •2004 – Unity founded •2005 - IndieCade •2008 – Microsoft launches Xbox Live Indie Games •2009 – Minecraft launches •2014 – Minecraft sold 54 million units and reaches 100 million registered users •Crowdfunding Source: M2 Research
  • 7.
    7 State ofGame Development Individual: Part-time/Hobbyist Individual: Freelancer Individual: Full Time Indie Studio: Small Independent with 2 - 24 people Studio: Midsize Independent with 25 - 100 people Studio: Large Independent with over 100 people Studio: Owned by Publisher Publisher: Activision, EA Other: Services, Academics, Support, Media Company Description 62% 20% 18% Source: M2 Research
  • 8.
    8 Publisher Indie State of Game Development Source: M2 Research
  • 9.
    9 Reasons forIndependence Source: IGDA Satisfaction Survey 2014 58% 56% 56% 44% 33% 32% 31% 15% 6% 19% State of Game Development
  • 10.
  • 11.
    11 Source: Inmobi,Mobile Gaming Cross-Market Analysis State of Game Development Consumer Preference by Genre
  • 12.
    12 Developer Focus- Game Genre State of Game Development 51% 42% 31% 29% 26% 25% 23% 22% 20% 16% 13% 12% 12% 9% 8% 8% 7% 7% 7% 7% 6% 5% 5% 4% 4% 3% Source: M2 Research
  • 13.
    13 Developer Focusand Game Genre State of Game Development 51% 42% 31% 29% 26% 25% 23% 22% 20% 16% 13% 12% 12% 9% 8% 8% 7% 7% 7% 7% 6% 5% 5% 4% 4% 3% Source: M2 Research
  • 14.
    14 Consumer Preferenceby Genre Source: Inmobi, Mobile Gaming Cross-Market Analysis State of Game Development
  • 15.
    15 Developer Focusand Game Genre State of Game Development 51% 42% 31% 29% 26% 25% 23% 22% 20% 16% 13% 12% 12% 9% 8% 8% 7% 7% 7% 7% 6% 5% 5% 4% 4% 3% Source: M2 Research
  • 16.
  • 17.
    17 PLATFORMS Stateof Game Development Source: M2 Research 64% 66% 64% 64% 31% 23% 37% 60% 23% 38% 14% 8% 4% 8%
  • 18.
    18 DISTRIBUTION 9% 20% 11% 17% 10% 2% 7% 5% 5% 9% 7% 10% 14% 9% 16% 19% 2% 4% 8% 8% 5% 5% Currently In 12 Months State of Game Development Source: M2 Research
  • 19.
    Development has Changed 1900-2000’s •Tools very expensive or custom built •Specialized high-end systems •Cost Millions of dollars to build Nicole Stenger, 1992 Today •Unity and Unreal have democratized tools •8% of developers doing VR games •Cloud-gaming Paul Bettner: Playful Corp. – Lucky’s Tale 19 State of Game Development Source: M2 Research
  • 20.
  • 21.
    21 State ofGame Development Source: IGDA Satisfaction Survey 2014
  • 22.
    22 Sources: CelluloidCeiling, Game Developer Magazine 0% 5% 10% 15% 20% 25% Women in the Film Industry 0% 5% 10% 15% 20% 25% Women in the Games Industry State of Game Development
  • 23.
    23 State ofGame Development Source: IGDA Satisfaction Survey 2014
  • 24.
    24 State ofGame Development Source: IGDA Satisfaction Survey 2014
  • 25.
  • 26.
    26 State ofGame Development Growth of Indies •More independent studios means more crowded eco-system Content •Focus on expansion of genres, game play, storytelling Development •Platforms, distribution, development are shifting Diversity •More diversity needed to sustain industry 1 2 3 4
  • 27.
    27 M2 Partners wanda@m2research.com THANK YOU! State of Game Development
  • 28.
    References State ofGame Development 2014, M2 Research Developer Satisfaction Report, IGDA – Kate Edwards, Johanna Weststar, Wanda Meloni, Celia Pearce, Marie-Josée Legault 28 State of Game Development