u6 lesson 5
TRANSCRIPT
Course Reps – Big News
GS9-1: Robert LairdDeputy Rep: Matt McKirgan
GS9-2: Peter SaltDeputy Rep: Cameron Foster
GS9-3: David CorreiaDeputy 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!
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Induction Assignment
• Marking Forecast• Classic Mistakes• Plagiarism
Understanding Funding and Finance
19 October 2009
Aims & Objectives
AimsTo introduce you to the importance of planning and preparing for budgets and budgeting in game development
Aims & Objectives
ObjectivesAll 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 gamesSome 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:a) Document your idea (this is called a business plan)b) Talk about it a lot – have a few pints and forget about it because
it’s too hardc) 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....
company biography
Mission Statement
Personal HISTORY
Rationale
Business category
Potential income
Potential spend
Management
FinanceBusiness Strategy
Organisational Structure
Answers
company biography
Mission Statement
Personal HISTORY
Rationale Business category
Potential incomePotential spend
Management
Finance
Business Strategy
Organisational Structure
Why Bother?
Funding can be obtained from a variety of sources, all of whom require a business plan
Business Plan
Loan
Investor
Grant Funding
The Loan
Definition: a bank loan granted for the use of a business
Source: wordnetweb.princeton.edu/perl/webwn
The Investor
Source: http://www.beerandyoung.com/glossary.php
My favourite!
Definition: Normally individuals looking to invest their own capital. Also known as White Knights or simply Private Investors
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 Linkwww.j4b.co.ukOur Library!EMDAEM 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.
Discuss what that means to you as potential designers/developers
Source: TIGA
Activity
Discuss beneficial factors in making a game with tax credits (breaks)
Time: 5-10 mins
Possible Answers
• 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 NeedThe list you made earlier carries cost. For instance:
Your Bungie Breakdown...
Could look a bit like this:
Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/
10 Most Expensive Video Game Budgets Ever
1. GTA IV
2. Shenmue
$100, 000, 000 (that’s $100m)
$70, 000, 000
3. Too Human $70-100, 000, 000
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
7. Tom Clancy MMO $50,000,000
8. Killzone 2 $40,000,000
9. Final Fantasy XII $40,000,000
10. Final Fantasy IX $40,000,000
Source: http://blog.knowyourmoney.co.uk/index.php/2008/08/10-most-expensive-video-game-budgets-ever/
Overview
• 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