How to make money creating computer games

The gaming industry has been one of the most dynamically developing for several years now. The explanation for this is quite simple – computers and game consoles are getting cheaper, and a person’s desire to have fun does not disappear. Moreover, no economic crisis can prevent this. It has long been noted that the worse the state of the economy, the more money people spend on inexpensive entertainment, trying to somehow brighten up the gloomy everyday life in Dota 2 Boosting.

The time of lone romantics in this industry

The time of lone romantics in this industry has long passed: the development of computer games has become a very serious business, where entire teams of specialists work on each new project. Now it can no longer be argued that developers in Russia cannot earn anything on the production of computer games, and basically work “for the West.” A good project, when sold in Russia, today brings at least $ 200-300 thousand per game. And often, from sales in the CIS, you can really get as much money as from the rest of the world. For example, more than 500,000 legal copies of our “Truckers” were sold in Russia, which brought in $750,000 at a wholesale price of $1.50.

The cost of printing one laser disc is 30 cents. And together with the box and high-quality printing, you get about 50 cents. You can earn $1 from the sale of one disc. The wholesale price of large gift boxes with games is about $24 each. Despite the fact that they are sold by an order of magnitude less, the profit here is several times higher.
According to market participants, the normal rate of return in this industry is at least 100%. In Russia, this level is still somewhat lower – all because of the same piracy and the limited market. But the difference is compensated by the successful sales of “hits” in the West, providing the same 100%.

Distribution of profits

As for the distribution of profits between the developer and the publisher, with a properly drawn up contract, the earnings of the publisher and the developer are comparable. But in Russia, it is often the developer who earns even more, because the publisher takes over the financing of the development. The developer, on the other hand, does not risk anything, receiving a certain percentage of sales after the product has begun to pay off. The average royalty rate in Russia is 20-50%, in the West it is less – about 20%, but if the developer came to the publisher with a finished product, taking over the financing of the project, then in exceptional cases royalties can reach 80%.

The cost of developing

The cost of developing one game directly depends on its complexity. On average, a high-quality project costs about $500,000. In the West, the cost of a project can reach up to $4-5 million.
In the United States, up to 80% of development costs are paid for the labor of expensive specialists, while in our country these costs are up to 60%. The rest falls on utility bills, rent, taxes, and other overheads. The salary of a programmer is also much less – from $500 to $1000. Hence the high cost of development: on average, a team of 15-20 specialists works on one large-scale project, plus additional people are involved at various stages.

The problem of personnel in the computer gaming industry is one of the most acute problems. According to the developers, only “brains” can provide the quality of the game. It is impossible to work here without a creative approach. And there are no more than a hundred such specialists in Russia, with a total employment in the industry of 1.5 thousand people. The matter is further complicated by the fact that universities do not train such specialists, and
the developers themselves have to raise ordinary programmers and 3D artists for several years.

Another difficulty in this business is the fickle fashion that computer toys are also subject to. It takes from one to two years to develop one project, and during this time the demand may change. Therefore, sometimes, it is easier for developers to close the project than to keep spending money on it.

Outsourcing

Outsourcing is another type of quite successful business for Russian developers, in which our specialists develop individual parts of the game or complete the entire project under an agreement with a Western game manufacturer. The benefits of such cooperation are obvious for both parties – the Western developer saves money significantly, and the Russian developers get a job.

For those who want to enter the gaming computer business, only two areas remain free now. Distribution or sale of ready-made games and development.
As for the publishing house, even with a huge start-up capital, it’s not so easy to get into this direction. The Russian market is divided between four or five well-known publishers, and none of the developers will dare to entrust their product to an unknown newcomer.

The most profitable thing

The most profitable thing is to simultaneously engage in development, publishing and distribution. That is, to control the entire technological process. Making a profit at each stage, and not giving it to a third-party company. But only very large companies that have enough resources for everything can afford it.

The path to the developers is much easier and cheaper. Initial expenses will be about $10 thousand. The technology is simple: several friends unite, buy a computer. Specialized programs (for example, usually all programming is done in C ++, 3D Max or Maya, which cost about $5 thousand. It is suitable for the artistic part). and work on creating a demo version. Then they go with it to the publisher. If the publisher is interested in the project, then he usually takes all the funding. The main condition for success is that the new project is worthwhile.

Total Number of Games Created Yearly

From 3,000 to 5,000 computer games are created annually in the world. Which only a few hundred become commercially successful and appear on store shelves. The entire box office, as in the film business, makes the top 10. It is understandable why all developers and publishers strive to make a hit. But not everyone succeed in their Mmr boosting Services.