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GS9-1: Robert LairdDeputy Rep: Matt McKirgan

GS9-2: Peter SaltDeputy Rep: Cameron Foster

GS9-3: David CorreiaDeputy Rep: Jessica May

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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