Games and Toys:Games and Toys:Not All Fun and GamesNot All Fun and Games

Tom SloperTom Sloper

Who Is Tom Sloper And Why Who Is Tom Sloper And Why Should I Listen To Him?Should I Listen To Him?

Expertise in Video Games & Computer Expertise in Video Games & Computer Games (25 years)Games (25 years)

Experience in Toys & Board Games (five Experience in Toys & Board Games (five years +/-)years +/-)

Video Games & Computer GamesVideo Games & Computer Games

Game Designer: 15 unique released titlesGame Designer: 15 unique released titlesProducer: 79 unique released titlesProducer: 79 unique released titlesEmployers: Western Tech., Sega, Atari, Employers: Western Tech., Sega, Atari, ActivisionActivisionClients: Yahoo!, Sennari, Mastiff, Four Clients: Yahoo!, Sennari, Mastiff, Four Winds, Flying Fishworks, Bonus Mobile, Winds, Flying Fishworks, Bonus Mobile, TikGames, Goodsol, ATGamesTikGames, Goodsol, ATGamesConventions: GDC, CES, E3, TGS, KGC, Conventions: GDC, CES, E3, TGS, KGC, MGS, SIGGRAPHMGS, SIGGRAPH

Toys & Board GamesToys & Board Games

Employers: Western Tech., Rudell DesignEmployers: Western Tech., Rudell Design

Independent projects (unpublished): Independent projects (unpublished): Space War, Reversible Puppet, Dice Space War, Reversible Puppet, Dice Games CollectionGames Collection

Almost-acquisition taleAlmost-acquisition tale

Conventions: Toy Fair, TGIF, ASD/AMD, Conventions: Toy Fair, TGIF, ASD/AMD, Hong Kong Toy & Game ShowHong Kong Toy & Game Show

Inventing Toys/GamesInventing Toys/GamesThe NutshellThe Nutshell

The Easy & Fun Part - The IdeaThe Easy & Fun Part - The IdeaAlso Pretty Easy (And Fun) - The Prototype or Also Pretty Easy (And Fun) - The Prototype or Demo (video/computer games Demo (video/computer games notnot a solo a solo endeavor)endeavor)Also Kinda Easy (But Not Fun) - Protecting the Also Kinda Easy (But Not Fun) - Protecting the IP (Copyright, Patent)IP (Copyright, Patent)Not Too Awfully Hard (Still Not Much Fun) - Not Too Awfully Hard (Still Not Much Fun) - Manufacturing Details, Business Plans, Manufacturing Details, Business Plans, ResearchResearchThe Really Really Hard Part - Getting Published The Really Really Hard Part - Getting Published or Distributedor Distributed

Part I. Electronic EntertainmentPart I. Electronic Entertainment

Not Hollywood – Not Silicon ValleyNot Hollywood – Not Silicon Valley– ““Siliwood”Siliwood”

Not a solo endeavor – it takes teamworkNot a solo endeavor – it takes teamworkForget the Hollywood modelForget the Hollywood modelIt ain't like the music industry or the publishing It ain't like the music industry or the publishing biz eitherbiz eitherIdeas from outside the industry are a very hard Ideas from outside the industry are a very hard sell!sell!We hear all the time about somebody’s cousin We hear all the time about somebody’s cousin or grandma sending a script to Hollywood and or grandma sending a script to Hollywood and becoming rich overnight...becoming rich overnight......That doesn’t happen in games....That doesn’t happen in games.

Platforms & Audiences:Platforms & Audiences:Important First ConsiderationImportant First Consideration

Young Kids - PC, Edutainment HandheldsYoung Kids - PC, Edutainment Handhelds

Tween Boys - Videogame Consoles, DS, Tween Boys - Videogame Consoles, DS, Game Boy, PCGame Boy, PC

Teen-Young Adult Males - Videogame Teen-Young Adult Males - Videogame Consoles, PC, Mobile Consoles, PC, Mobile

Adults (female/male) - DS, Game Boy, Adults (female/male) - DS, Game Boy, Mobile, PC (especially online)Mobile, PC (especially online)

Genres & AudiencesGenres & Audiences

Edutainment - Kids (#2 genre on PC)Edutainment - Kids (#2 genre on PC)Action - Tweens, Teens, YA Males (#1 Action - Tweens, Teens, YA Males (#1 genre on consoles)genre on consoles)Shooters - Males (#3 genre on PC)Shooters - Males (#3 genre on PC)RPGs - Teen-Adult, male/femaleRPGs - Teen-Adult, male/femaleStrategy - Adults, Males (#1 genre on PC)Strategy - Adults, Males (#1 genre on PC)Casual – Adult female/male (possibly Casual – Adult female/male (possibly included in strategy category)included in strategy category)Sports - Males (#2 genre on consoles)Sports - Males (#2 genre on consoles)

Some StatsSome Stats1 in 3 Americans who use PCs play online 1 in 3 Americans who use PCs play online games.games.2 in 3 online PC gamers are female.2 in 3 online PC gamers are female.Females over 40 spend the most time Females over 40 spend the most time playing online games.playing online games.Ad revenue outstrips actual sales of online Ad revenue outstrips actual sales of online games.games.PC games presently 15% of market, but:PC games presently 15% of market, but:Casual games expected to outstrip Casual games expected to outstrip hardcore game revenues by 2011.hardcore game revenues by 2011.

First Step – Document ItFirst Step – Document It

ConceptConcept– ““Elevator Pitch” in writingElevator Pitch” in writing

TreatmentTreatment– Don't forget the competitive analysis! Don't forget the competitive analysis! – And the team bio.And the team bio.

Full GDD (Game Design Document)Full GDD (Game Design Document)– Not needed until there's funding and a teamNot needed until there's funding and a team

Next – Business Plan, Next – Business Plan, Team BuildingTeam Building

You probably think I skipped some steps there... You probably think I skipped some steps there... Well... The harsh truth is:Well... The harsh truth is:Publishers aren't interested in paper designs Publishers aren't interested in paper designs from amateurs.from amateurs.– Some will consider, but likelihood of success Some will consider, but likelihood of success

extremely low.extremely low.– Is Grisham here? Coppola? The guy who created Is Grisham here? Coppola? The guy who created

CSI?CSI?– ThoseThose guys have a shot with a paper design. guys have a shot with a paper design.

So the only way to make a video game is to So the only way to make a video game is to build a team and make it yourself.build a team and make it yourself.

Costs: “It Depends”Costs: “It Depends”

Triple-A hardcore videogame titles cost in Triple-A hardcore videogame titles cost in the tens of millions. Average PS2 game: the tens of millions. Average PS2 game: $8M, 40 people, 1½-2 years.$8M, 40 people, 1½-2 years.Casual online PC games are much Casual online PC games are much cheaper to develop: $30k-$200k. 1-4 cheaper to develop: $30k-$200k. 1-4 people, 6-12 months.people, 6-12 months.Massively Multiplayer Online Games can Massively Multiplayer Online Games can cost $100M to create, then involve cost $100M to create, then involve ongoing support costs.ongoing support costs.

Need to have a team in place before you Need to have a team in place before you can pitch game to a publisher.can pitch game to a publisher.Need to have funding in place before you Need to have funding in place before you can build a team.can build a team.Need to have a business plan before you Need to have a business plan before you can get funding.can get funding.Key part of business plan: industry contacts Key part of business plan: industry contacts to build a solid experienced team.to build a solid experienced team.Upshot: you probably can't get funding if Upshot: you probably can't get funding if you're not an industry vet.you're not an industry vet.I hope you're wealthy!I hope you're wealthy!If you're not wealthy, and if you're young, If you're not wealthy, and if you're young, get into the industry. Then work it from the get into the industry. Then work it from the inside.inside.

Venture CapitalVenture Capital

SBASBA

Bank loanBank loan

AngelsAngels

Video Game Investor ConferenceVideo Game Investor Conference– June 21, Hotel Nikko, San FranciscoJune 21, Hotel Nikko, San Francisco– Pitch directly to VCsPitch directly to VCs– www.srinstitute.com/cx599www.srinstitute.com/cx599

SUCCESS RATE: SUCCESS RATE: Based on WHO YOU Based on WHO YOU ARE and WHAT YOU ARE and WHAT YOU

BRING to the Pitch BRING to the Pitch MeetingMeeting

Professional Professional Game Game

DeveloperDeveloper

Game Game Industry Industry

ProfessionalProfessional

Professional Professional But Not InBut Not In

Game Game IndustryIndustry

Not In Not In Industry; Industry;

Not Not ProfessionalProfessional

Complete GameComplete Game 10%10% 9%9% 8%8% 7%7%2/3 Complete Game2/3 Complete Game 7%7% 6%6% 5%5% 4%4%1/3 Complete Game1/3 Complete Game 5%5% 4%4% 3%3% 2%2%Small interactive demoSmall interactive demo 4%4% 3%3% 2%2% 1%1%

Animation onlyAnimation only 3%3% 2%2% 1%1% 0%0%

Paper onlyPaper only 2%2% 1%1% 0%0% 0%0%Verbal presentationVerbal presentation 1%1% 0%0% 0%0% 0%0%Idea in your headIdea in your head 0%0% 0%0% 0%0% 0%0%

Once You Have a TeamOnce You Have a Team

One concept isn't enough.One concept isn't enough.One demo isn't enough.One demo isn't enough.Hoping to get one idea published isn't a Hoping to get one idea published isn't a good enough business plan.good enough business plan.Develop several demos, but seek entry-Develop several demos, but seek entry-level development work:level development work:– PortsPorts– LocalizationsLocalizations– Find a nicheFind a niche

Start networking like crazy:Start networking like crazy:– GDCGDC– AustinAustin– E3E3

Get an agent or rep if you can. Get an agent or rep if you can. – I’m not an agent; I’m not a rep.I’m not an agent; I’m not a rep.– Start with Gamasutra (Companies tab).Start with Gamasutra (Companies tab).

And make those pitches.And make those pitches.– Not just one pitch.Not just one pitch.– Not just one demo.Not just one demo.– Don’t start with your #1 choice publisher.Don’t start with your #1 choice publisher.

Go to publishers, not developersGo to publishers, not developers– Only reason to pitch to developers: you ignore my Only reason to pitch to developers: you ignore my

advice to build a team - you intend to "borrow" one, or advice to build a team - you intend to "borrow" one, or get one to buy into your one game concept.get one to buy into your one game concept.

– Publishers and what they do...Publishers and what they do...– Developers and what they do...Developers and what they do...– Why pitching to developers doesn't work...Why pitching to developers doesn't work...

Having multiple demos makes you and your Having multiple demos makes you and your team more attractive...team more attractive...

HopeHope to get one of your team’s original concepts to get one of your team’s original concepts greenlit...greenlit...

But what you're really selling is your team's But what you're really selling is your team's development skill. (At least, that’s what they’re development skill. (At least, that’s what they’re more likely to buy.)more likely to buy.)

Publishing Options At A GlancePublishing Options At A Glance

Video game or large PC game (CD/DVD)Video game or large PC game (CD/DVD)1.1.Get it published by an established big Get it published by an established big

publisher publisher 2.2.Become a publisher yourself Become a publisher yourself 3.3.Get it distributed by an established bulk Get it distributed by an established bulk

distributordistributor

Small PC game or web game Small PC game or web game 1.1.Get it hosted on an established game portal Get it hosted on an established game portal 2.2.Get it hosted on a downloads siteGet it hosted on a downloads site3.3.Host your downloadable or web game on your Host your downloadable or web game on your

own site own site

Publishing Options (cont’d.)Publishing Options (cont’d.)

MMOG MMOG 1.1. Get it published, hosted, and supported by an Get it published, hosted, and supported by an

established big publisher established big publisher

2.2. Publish, host, and support it yourself Publish, host, and support it yourself

Mobile game Mobile game 1.1. Get your mobile game published by a mobile Get your mobile game published by a mobile

publisher publisher

2.2. Get your mobile game hosted online for folks to Get your mobile game hosted online for folks to download download

3.3. Offer it for sale on your own siteOffer it for sale on your own site

Typical Deal (Average PS2 game)Typical Deal (Average PS2 game)

There is no such thing as a “typical” deal. There is no such thing as a “typical” deal. Ignore this slide!Ignore this slide!

Advance: $5M Advance: $5M

Royalty: 15% of net salesRoyalty: 15% of net sales

Break-even: 1M+ unit salesBreak-even: 1M+ unit sales

Part II. Toys, Board GamesPart II. Toys, Board Games

DIY – You can invent it all by yourself. No team DIY – You can invent it all by yourself. No team required, you don’t required, you don’t havehave to be in the industry. to be in the industry.

TGIF - a TGIF - a vitalvital resource for inventors - mark it on resource for inventors - mark it on your calendars! Sept. 7, in Orlando. your calendars! Sept. 7, in Orlando. www.tgifcon.comwww.tgifcon.com

Your prototype doesn't have to be "final Your prototype doesn't have to be "final production quality" - unless you're going to production quality" - unless you're going to manufacture and distribute it yourself.manufacture and distribute it yourself.

Card Games - really easy to prototype and make Card Games - really easy to prototype and make them look great, thanks to computers.them look great, thanks to computers.

Should Go Without SayingShould Go Without Saying

Make your prototype. Make your prototype. – Board games: see Sloperama.com FAQ 20.Board games: see Sloperama.com FAQ 20.– Card games: see Sloperama.com FAQ 38.Card games: see Sloperama.com FAQ 38.– Toys: hey, Toys: hey, you’reyou’re the inventor... the inventor... youyou figure it out. figure it out.

Test it on F&F (a great free resource!).Test it on F&F (a great free resource!).

Protect your IP. Protect your IP. See Sloperama FAQ 39.See Sloperama FAQ 39.– Patent – www.uspto.govPatent – www.uspto.gov..

– Trademark – ditto.Trademark – ditto.– Copyright – www.copyright.gov.Copyright – www.copyright.gov.– Lawyers are a good thing.Lawyers are a good thing.

Three OptionsThree Options

1.1. License to a manufacturer/publisher through License to a manufacturer/publisher through an an agentagent ( (I’m not an agentI’m not an agent););

2.2. License to a manufacturer/publisher by License to a manufacturer/publisher by yourself (“yourself (“self-licenseself-license”);”);

3.3. Self-manufacture, Self-manufacture, self-publishself-publish..

(Do (Do notnot deal with any of those invention deal with any of those invention companies who advertise on TV.)companies who advertise on TV.)

What Are Your Priorities?What Are Your Priorities?

Maximum profits?Maximum profits?

Creative control?Creative control?

Ease (less difficult)?Ease (less difficult)?

Higher likelihood of success?Higher likelihood of success?

First Step Depends on the Option You ChooseFirst Step Depends on the Option You Choose

If going through an agent (recommended over If going through an agent (recommended over self-licensing), first select a good agent (self-licensing), first select a good agent ( I'm not I'm not an agentan agent). ). – Commission can vary from 25% to 60% of the royalty. Commission can vary from 25% to 60% of the royalty.

Don’t pay an advance to an agent.Don’t pay an advance to an agent.– Sloperama.com, FAQ 20Sloperama.com, FAQ 20– DiscoverGames.comDiscoverGames.com

If self-licensing, carefully research publishers. If self-licensing, carefully research publishers. Find a company whose product line is a good fit Find a company whose product line is a good fit for your invention.for your invention.– Typical royalty: 5% of net sales.Typical royalty: 5% of net sales.– Sloperama.com, FAQ 20Sloperama.com, FAQ 20– DiscoverGames.comDiscoverGames.com– www.toy-tia.orgwww.toy-tia.org– ThomasNet.comThomasNet.com

Self-ManufacturingSelf-ManufacturingGet professional design help. LGet professional design help. L inks on inks on DiscoverGames.com. Look in Yellow Pages too.DiscoverGames.com. Look in Yellow Pages too.

Manufacturing & printingManufacturing & printing – See links on DiscoverGames.com, See links on DiscoverGames.com,

Sloperama.com FAQ 20, ThomasNet.com.Sloperama.com FAQ 20, ThomasNet.com.– More units = lower per-unit cost. Usual first run: More units = lower per-unit cost. Usual first run:

5,000. Where will you store them? Assemble 5,000. Where will you store them? Assemble them? Custom parts entail mold-making costs. them? Custom parts entail mold-making costs. Overseas cheaper than domestic.Overseas cheaper than domestic.

– Size & shape of product matters – go to the toy Size & shape of product matters – go to the toy store, look at similar products on the shelves.store, look at similar products on the shelves.

– Keep costs a reasonable margin below 50% of Keep costs a reasonable margin below 50% of SRP (retail = 2x wholesale). SRP (retail = 2x wholesale).

Self-Publishing – TRADE SHOWSSelf-Publishing – TRADE SHOWSAmerican International TOY FAIR (NY, American International TOY FAIR (NY, February)February)ChiTAG (Chicago, November)ChiTAG (Chicago, November)ASD/AMD (Las Vegas, Aug.; NY, Sept.; ASD/AMD (Las Vegas, Aug.; NY, Sept.; L.A., Oct.)L.A., Oct.)Essen Spiel Fair (Germany, October)Essen Spiel Fair (Germany, October)Origins Int’l. Game Expo (Columbus, Origins Int’l. Game Expo (Columbus, June)June)TGIF (Orlando, September)TGIF (Orlando, September)Protospiel (Ann Arbor, July)Protospiel (Ann Arbor, July)Comic Cons, Sci-Fi Cons, Puzzle Cons...Comic Cons, Sci-Fi Cons, Puzzle Cons...

Paper GamesPaper Games

Online self-pub options:Online self-pub options:– Get them hosted on an established paper Get them hosted on an established paper

games site (Google “paper games”);games site (Google “paper games”);– Host them on your own website.Host them on your own website.

That Was The Long. This Is The Short.That Was The Long. This Is The Short.(I’m starting to wrap it up)(I’m starting to wrap it up)

You can cheaply DIY re You can cheaply DIY re toys and board toys and board gamesgames, but... , but... – ......video gamesvideo games require huge amounts of cash, require huge amounts of cash,

large teams, and you have to be in the large teams, and you have to be in the industry. industry.

– Nobody “dabbles” in video games; it’s a Nobody “dabbles” in video games; it’s a career, or nothing.career, or nothing.

It's It's funfun to design toys and games, to design toys and games, and to playtest them, and see the and to playtest them, and see the delight on people's faces as they delight on people's faces as they enjoy what you made...enjoy what you made...

BUT...BUT...

Whether you’ve created an electronic game Whether you’ve created an electronic game or a non-electronic game or toy...or a non-electronic game or toy...

... to get published & distributed is a lot of ... to get published & distributed is a lot of hard work.hard work.– Requires a completely different set of sales Requires a completely different set of sales

skills and business smarts...skills and business smarts...– Not just creativity and a sense of what's fun. Not just creativity and a sense of what's fun.

Inventor hat Inventor hat Salesman/businessman Salesman/businessman hat. (Keep your Creative hat on always.)hat. (Keep your Creative hat on always.)

Others have done it before – you can do it.Others have done it before – you can do it.

Final Parting ThoughtFinal Parting Thought

Even the experts can't predict Even the experts can't predict what will, or what won't, become a what will, or what won't, become a hit.hit.

Yours might be the next big hit.Yours might be the next big hit.

Resources / LinksResources / LinksDiscoverGames.com – great articles & links!DiscoverGames.com – great articles & links!Sloperama.com (articles #1, 2, 11, 13, 21, 31, Sloperama.com (articles #1, 2, 11, 13, 21, 31, 35, 60, 62, 20, 38)35, 60, 62, 20, 38)Gamasutra - articles, news, companies list...Gamasutra - articles, news, companies list...GameDev.net - get diverse opinions and get GameDev.net - get diverse opinions and get really confused!really confused!IGDA.org - ditto!IGDA.org - ditto!BoardGameDesign mailing list - ditto!BoardGameDesign mailing list - ditto!BoardgameGeekBoardgameGeek““So You Wanna Be A Game Designer” So You Wanna Be A Game Designer” (GameSpot.com – Google the title)(GameSpot.com – Google the title)

Questions?Questions?

I'm sure I glossed over a lot of stuff, like I'm sure I glossed over a lot of stuff, like "why" and "how much" and "how "why" and "how much" and "how long." long."

Before you ask, the answers are Before you ask, the answers are "money," "it depends," and "it "money," "it depends," and "it depends." depends."

Now go ahead and ask anyway...(~_^)Now go ahead and ask anyway...(~_^)