Embed Size (px)
DESCRIPTION
Publishers, investors and partners: do you need them? This is a question every independent developer faces when deciding whether or not to self-publish. What do you give up and what do you get in return in each scenario? In the past the publisher was the gateway to the marketplace, but today anyone can publish a game by themselves. This talk will explore the financing and publishing options available to independent developers today, covering traditional publishers, investors, strategic partners and self-funding options such as Kickstarter. Each one offers different benefits and resources, from capital, to marketing and analytics, to strategic relationships with platform owners. This session will give you a better understanding of the modern publishing landscape and arm you with the tools to evaluate your options, ask the right questions and come to the decision that's best for your company
Til$ng Point Confiden$al
FUNDING AND PUBLISHING
OPTIONS FOR INDEPENDENT DEVELOPERS
DUMB MONEY SMART MONEY
JULY 2014
Til$ng Point Confiden$al
WHO AM I? GIORDANO BRUNO CONTESTABILE VP Product Management & Revenue, Tilting Point
Previously seen at PopCap and EA Executive Producer, Bejeweled franchise Mobile Product and Business Strategy Asia Pacific Operations
Mobile gaming since 2002 SMS / WAP / J2ME / BREW and other horrors Happier since 2008 (App Store launch date) Twittering away @giordanobc
2
Til$ng Point Confiden$al
New generation mobile partner for top independent game developers
WHO ARE WE? TM
Focus on mobile and tablet platforms
Full service: • Funding
• Product management
• Production support
• Marketing & user acquisition
• Tech platform
• Insight, analysis and research
• Reach
• Scale
Sounds interesting? [email protected]
3
Til$ng Point Confiden$al
An innovative platformer from 1337+Senri with cutting-edge graphics, starring a lovable, unique main character
4 Tim Cook’s Keynote at WWDC 2014
Unveiling of Android TV at Google I/O
On stage at the ADA Ceremony
Til$ng Point Confiden$al
Tower offense and defense game with a collectible card game twist from Uber Entertainment
Featured by Apple in 120 countries
“Toy Rush could be the game I’ve always wanted.” 148Apps
“This game looks seriously awesome… Marvelous.” Touch Arcade
“Toy Rush is a game I’ve been waiting desperately for.” App Invasion
5
Til$ng Point Confiden$al
LET’S GET STARTED ENOUGH ABOUT US
Til$ng Point Confiden$al
IN THE OLD DAYS… Publishers were needed because of:
Very high cost of development
Retail distribution very important, and very expensive
Large marketing budgets required
Console platforms mostly closed to smaller companies
7
Til$ng Point Confiden$al
AS A RESULT Publishers held sway, and terms weren’t favorable to developers
8
Til$ng Point Confiden$al
NO OR LIMITED IP OWNERSHIP
9
Til$ng Point Confiden$al
HIGH COST STRUCTURES AND LOW ROYALTIES Resulting in low chance of receiving any over lifetime of product
10
Til$ng Point Confiden$al
LIMITED CREATIVE CONTROL
11
Til$ng Point Confiden$al
APPROVAL PROCESS OFTEN ARBITRARY
12
Til$ng Point Confiden$al
FREQUENT CRUNCHES And “death marches”
13
Til$ng Point Confiden$al
WHAT HAS CHANGED?
(WHAT WAS THE TILTING POINT !?)
14
Til$ng Point Confiden$al
No physical distribution infrastructure needed
Platform barrier of entry effectively eliminated
Performance-driven marketing lowering overall costs
Indie developers can reach mass audiences directly
WHAT CHANGED? DIGITAL DISTRIBUTION PLATFORMS HAVE REVOLUTIONIZED THE MARKET
15
Til$ng Point Confiden$al
Cheaper and more accessible engines Smaller teams Shorter development cycles Unlimited upside
WHAT CHANGED? MAKING GAMES FOR DIGITAL
PLATFORM CAN BE MUCH MORE AFFORDABLE
16
Til$ng Point Confiden$al
WHAT CHANGED? AUDIENCE HAS BECOME
SIGNIFICANTLY LARGER AND BROADER
100M FROM
“GAMERS” 2B TO
“PEOPLE THAT PLAY GAMES”
17
Til$ng Point Confiden$al
The work doesn’t end with a big launch
In fact, that’s just the beginning
WHAT CHANGED? GAMES ARE NOW SERVICES
18
Til$ng Point Confiden$al
BUT GOING ALONE IS STILL DAUNTING
19
Til$ng Point Confiden$al
PRODUCTION VALUES AND COSTS ARE RISING
GOING ALONE IS DAUNTING
20
Til$ng Point Confiden$al
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
Jan
-12
Feb
-12
Mar-
12
Ap
r-12
May
-12
Jun
-12
Jul-
12
Au
g-1
2
Sep
-12
Oct-
12
No
v-1
2
Dec-1
2
Jan
-13
Feb
-13
Mar-
13
Ap
r-13
May
-13
Jun
-13
Jul-
13
Au
g-1
3
Sep
-13
Oct-
13
No
v-1
3
Dec-1
3
Jan
-14
Average Cost Per Install
Android CPI
iOS CPI
Facebook CPI
MARKETING BUDGETS & USER ACQUISITION COSTS ARE RISING
GOING ALONE IS DAUNTING
Source: EEDAR, 2014
21
Til$ng Point Confiden$al
MORE AND MORE GAMES RELEASED EVERY MONTH
GOING ALONE IS DAUNTING
Number of game submissions by
month on the iOS App Store
0
1000
2000
3000
4000
5000
6000
7000
8000
20
08
-06
20
08
-08
20
08
-10
20
08
-12
20
09
-02
20
09
-04
20
09
-06
20
09
-08
20
09
-10
20
09
-12
20
10-0
2
20
10-0
4
20
10-0
6
20
10-0
8
20
10-1
0
20
10-1
2
20
11-0
2
20
11-0
4
20
11-0
6
20
11-0
8
20
11-1
0
20
11-1
2
20
12-0
2
20
12-0
4
20
12-0
6
20
12-0
8
20
12-1
0
20
12-1
2
20
13-0
2
20
13-0
4
20
13-0
6
20
13-0
8
20
13-1
0
20
13-1
2
20
14-0
2
1.2 MILLION GAMES IN THE iOS APP STORE
200K LAUNCHED IN THE PAST 6 MONTHS
Source: Tilting Point / 148Apps
22
Til$ng Point Confiden$al
MAKING GAMES IS NOT JUST ABOUT MAKING GAMES
GOING ALONE IS DAUNTING
Domain knowledge is required in:
CONSUMER INSIGHTS | MARKETING | USER ACQUISITION ANALYTICS | MONETIZATION | QA | ETC.
23
Til$ng Point Confiden$al
WHAT TO LOOK FOR IN A PUBLISHING DEAL?
24
Now that the playing field is tilted in the developer’s favor, what should you be asking for?
Til$ng Point Confiden$al
WHAT TO ASK FOR Depending on factors such as level of completion of the game and investment from the partner:
Full or partial financing
Control of the IP
Creative control
Product management and production support
Platform relationship management
Marketing and user acquisition budget & execution
Ongoing live operations funding
25
Til$ng Point Confiden$al
WHAT ARE YOUR OPTIONS?
26
Til$ng Point Confiden$al
WHAT ARE YOUR OPTIONS?
BOOTSTRAPPING
VCs AND ANGELS
CROWDFUNDING
PLATFORMS
INCUBATORS & ACCELERATORS
PARTNERS (EVOLVED FROM PUBLISHERS)
27
Til$ng Point Confiden$al
PROS No external pressure
Complete creative control
No dilution
Availability of affordable tech
CONS Limits scope of project
Lack of access to external know-how
Hard to be noticed with low / no marketing budget
MOST SUITABLE FOR Wealthy people or very frugal people
Small teams with a distinctive game that can be developed on a low budget and find its own audience
BOOTSTRAPPING
28
Til$ng Point Confiden$al
PROS No dilution
Creative control (but careful about upsetting your backers!)
Crowdfunding campaigns are also marketing opportunities
Niche projects can get funded
CONS Difficult to be noticed: most crowd funding campaigns don’t gain traction
Obligation to deliver on backers’ rewards
No support from “investors” beyond funding (and often a lot of nagging)
MOST SUITABLE FOR Anyone that has made a cult game in the ’80s or ’90s
Experienced teams that know how to budget for and how to deliver a game
Niche games that can find a very enthusiastic audience
CROWDFUNDING
29
Til$ng Point Confiden$al
PROS Office space
Some funding (often limited)
Mentorship
Introductions to investors, platforms and publishers
CONS Equity dilution, often disproportionate to contribution
Limited timeframe: teams have to find their way after a certain amount of time
Not all programs are equally useful & reputable
MOST SUITABLE FOR Teams with little or no experience in the industry needing a lot of guidance and support
INCUBATORS & ACCELERATORS
30
Til$ng Point Confiden$al
PROS Access to sizeable funds
Access to other investors, talent and resources
CONS Strong dilution
Loss of control
Most VCs don’t have domain expertise and don’t understand games
MOST SUITABLE FOR Very experienced teams with an understanding of the business side of games
Companies with significant traction that want to get to the next level
VCs & ANGELS
31
Til$ng Point Confiden$al
PROS Strong production and marketing support through the whole development cycle
Guaranteed promotion on the platform without cost to the developer
CONS Limitations on where the game can be published, (either temporarily or permanently)
Giving up control of IP is often a requirement, although this is changing
Strong involvement of the platform partner in creative decisions & production cycle
Exposure in change of strategy or staffing in the platform partner
MOST SUITABLE FOR AAA games
Uber-cool indie games that make the platforms look good at E3 while they peddle their shooters
Teams that have the experience, processes and patience needed to deal with a closely involved partner
PLATFORMS
32
Til$ng Point Confiden$al
PROS Full-service support (development, marketing, operations, business)
Funding without losing ownership and creative control
Allows developers to focus on making great games while their partner handles everything else
CONS Too awesome? LOL J/K (?!)
Attractive deal terms only accessible to experienced teams with very high-quality games
MOST SUITABLE FOR Successful teams looking to tackle more ambitious projects
Commercially-minded teams looking to build franchises and brands
PARTNERS EVOLVED FROM PUBLISHERS
33
Til$ng Point Confiden$al
CONCLUSIONS
34
Til$ng Point Confiden$al
Best partner depends on genre, platform, scope, team and goals
ONE SIZE FITS ALL DOESN’T APPLY
35
Til$ng Point Confiden$al
In today’s market, developers have more options and more negotiating power
POWER SHIFT
36
Til$ng Point Confiden$al
Creative control and not relinquishing IP ownership are key to building a long-term business
CREATIVE CONTROL
37
Til$ng Point Confiden$al
You will be working with your partner at least through the game’s lifecycle - better enjoy their company
A GOOD FIT IS EVERYTHING
38
Til$ng Point Confiden$al
Managing all aspects of a business is harder Most developers need partners
MAKING A GAME IS HARD
39
Til$ng Point Confiden$al
QUESTIONS? www.tiltingpoint.com
twitter - @tiltingpoint
twitter - @giordanobc GIORDANO CONTESTABILE
Images: Slide 1 - Volkswagen ad, slide 6 - Lance Runner ad, slide 7 – KFC ad, slide 8 - 6BEstudio for Top Destinos, slide 9 – Harvey Nichols ad, slide 10 – Platinum FMD, slide 11 – Dulux ad, slide 12 – Garyckarntzen, slide 13 - Hu Zheng, slide 14 – Canal Plus ad, slide 15 – Curli ad, slide 16 - Paperboat Creative, slide 17 – Hino ad, slide 18 - Vichy Catalan, slide 19 - Gregor Collienne, slide 24 – Platinum FMD, slide 25 – Naolito, , slide 27 - Ramy on DeviantArt, slide 34 - Radio for Heads ad, slide 35 - Carioca Studio for TNT ad, slide 36 – Philips ad, slide 37 – Shutterstock, slide38 - Kevin Richardson, slide 39 - Koen Demuynck. Sources unknown for all uncredited images.
