I have 100,000 USD to invest in a new business. I think I have some decent ideas for some interesting games/game mechanics. And I have burning desire to build a new game company from the ground up.
Basically, I'm posting here to fetch some ideas about what would be the best strategy to get my company off the ground and on the way to becoming profitable.
I am looking for specific, detailed and technical ideas/thoughts about how I should exactly use my startup capital to accomplish my goals.
These are my goals:
1 - To complete and release one game by the end of the first year.
2 - To earn enough money to fund projects of future interest.
3 - To complete a highly-polished, buy modestly-budgeted, MMO, FPS, MOBA, or hybrid game (with interesting new game mechanics).
I have a ton of experience with FPS games (specifically on the PC), and a good knowledge of RPG games. I also am learning and becoming a fan of MOBA games (Smite) and I think this genre may have a lot to offer in terms of Return On Investment. I am interested in either a free-to-play model or low-priced DLC for all of my releases.
Thus far, my idea is to hire a programmer, modeler/animator and an artist (I can do design). I was thinking of offering 10-15k for a year's salary plus a 25% royalty for up to the first million dollars of net profit (dropping to 10% royalty after that). This puts the potential incentive for each employee at 260k+ - if the game clears a million net profit. Salaries will be re-considered/extended after the first year. Using this model I will only be out 30-45k (3 employees at 10-15k each) the first year in business and I will have 55k+ to work with for subsquent years/challenges.
Now. All employees must relocate to my location in Raleigh, NC and must work from my house (to begin with). This will keep overheard low and the team on the same page. Office space may be acquired in the future dependant upon income.
Ultimately, I would like to have a nice office with a team of 20-30 employees or so working on ground-breaking AAA titles. These titles would require some budget, but not insanely crazy budgets (probably in the ballpark of 1-2 million). This is my ultimate goal - just so you all know where I'm intending to end up.
Well. What do you guys think? I am looking for feedback on any and everything that I posted above.
Just FYI: I would prefer not to have to make a casual game/phone game for my first title as I have absolutely no experience in this catagory and this catagory is not necessarily something that interests me. An ideal first game would be more along the lines of say Braid, or Limbo, or World of Goo (2d side-scrollers) or even a game like Minecraft.
Ok, thanks then.
Edited by redfella, 04 July 2012 - 02:05 PM.