Cash..? How Much Cash?

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9 comments, last by Soulz 21 years, 1 month ago
quote:
I mean, your engine is already created from about 60-70% (IMHO from the great thread in other forum), so they can`t just ask for this.

See, the publisher is paying for the development, they see it as a job: "we pay you to program this game for us". Getting longterm high risk capital from a bank will range at similar rates, in terms of percentages, but not in terms of copyright implications. But it will be near to impossible to get one for a startup game company, without the required credentials. So essentially, the publisher plays the role of a risk investor, and they (theoretically) take a large risk by giving you the money. If that was really such a high risk in our case is a different question, but the principle is the same. Also, I''m not saying that all publishers are like that, but we did a bunch, and the results were a little disapointing in that matter.

quote:
Hm, as for the distributor channel, i think those 60% is pretty high number.

Yep, it is pretty high. That''s why I said that it depends on your negotiation talents, and obviously on the market profile of the distributor (local, national, worldwide, type of exposure, etc). Another important point to get the good deals, is making an exclusive longterm contract (ie. you guarantee to sell all the games you release within the next 10 years through them). 35% seems a little low too me, though. At my real-life job, I''m working for a professional sim/vis software developer, we sell our products through one exclusive distributor, and get largely over that amount. In the end, it depends on how tight your business relationship is. We got offered 40% by a distributor for our game, as negatiation base. We didn''t negotiate it through (yet), but 50% should have been possible without too much trouble.

What alternative do you have ? Distribute yourself. Doing so on a physical large scale retail is extremely expensive, of course. But doing so on the internet is not. For a first time game or small application, you should definitely consider this method of distribution. Release a limited demo (2 levels), and sell the full game on your website. Either through direct download (subject to an authorization code), or if you have the money, have the box/CDs professionally manufactured and send them to your clients. A lot of eg. commercial 3DSMax plugins use this method of retail, and it works pretty well.

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