How To Start A Video Game Development Company.

Business Ideas


Starting A Video Game Development Company.

Introduction.

Do you want to start a video game company? If YES, here is a complete guide to starting a game development business with no money and no experience. 

Okay, so we've provided you with a sample game development business plan template. We also delved into analyzing and drafting a sample video game marketing plan supported by guerrilla marketing ideas for video game development businesses. In this article, we will consider all the requirements for starting a video game design business. Put on your entrepreneurial hat and move on.

Why start a game development company?

A video game development company is usually involved in creating digital and interactive games that can be played on a variety of platforms from personal computers, video game platforms to cell phones. The video game industry has been in a state of evolution, giving way to more innovative players since she was born in the 20th century.

 If you have conducted extensive research on what you will need to start this business and if you also have the relevant skills, you may want to consider starting a video game development business. If you are still confused about several essentials, you may need to read this article to gain more knowledge.

Starting a Game Development Company A Complete Guide.

1. Industry overview.

The video game industry took a leap in 2015, according to the Entertainment Software Association (ESA) when the industry's revenue in the United States of America jumped to $ 235 billion, a 5% increase from 2014. Part of the huge jump in revenue can be traced to the increase in software sales, which amounted to $ 16.5 billion in total revenue, up 7% from 2014.

2. Interesting statistics Video game industry.

The average player is not a teenager but a young adult and can be male or female, with 48% of those in the age group 36 being more identified as women. Globally, Russia is the ninth country by population. , contributes just 9 percent to the European digital gaming revenue market.

 Of all Russians who gamble, 60 percent do so via the Internet. In the United States of America, 51 percent of households own at least one dedicated game console. According to statistics, 68 percent of game console owners own other devices that they can play but prefer to play on a game console.

 According to statistics, more than 59 percent of Americans play video games, which means that over 150 million people of different backgrounds, genders, ages, and socioeconomic status in the United States of America play. The average age of a player in the United States is 31; only about 29 percent of gamers are under the age of 18, the percentage of those over 50 who play video games is higher than those under the age of 18.

 At least 74 percent of K-8 teachers use digital games in order to increase student engagement and motivation in the classroom. In addition, 56 percent of parents attest to the positivity of video games in their children's lives.

 According to IBISWorld, the video game development industry is worth $ 22 billion and saw 9.1 percent growth between 2011 and 2016. There are approximately 29,800 video game developers in the United States of America employing approximately 114,000 people.

The industry is also expected to continue to experience strong growth over the next five years. This is due to the fact that operators have not only increased their investments in this sector but have also been able to successfully advertise these games in advance, which has led to successful franchises and releases.

 The social networking gaming industry is also in the video game industry and has generated over $ 5 billion in revenue for its industry with an expected growth of 15.9% in the periods of 2011 and 2016. The industry is mainly concentrated in the western region of the United States of America and accounting for approximately 39 percent of the industry's revenue. California as a whole account for 34.8 percent of industry sales due to the presence of technology companies in Silicon Valley.

 It was found that as of 2015, 48 percent of video gamers are women, which is 1 percent higher than in 2014. Furthermore, video game buying is split equally between men and women. In the UK, 52 percent of gamers are women, according to a study conducted. Furthermore, it was found that 56 percent of female players in the UK played on a console while 68 percent played online.

 There has been an increase in the number of video game viewers, particularly as YouTube's gaming channels brought in more than 3.5 billion views each month. More and more people are playing video games rather than tuning into sporting events in the United States of America.

Market research and feasibility studies.

1. Demographic and psychographic data.

The demographic and psychographic composition of those working in the video game development sector are largely men but are not totally limited to men as women make up 22% of video game developers. Game developers have also cut race, age, and socioeconomic status as more people look forward to getting into the industry and making a name for themselves.

 However, while you may be able to successfully define the demographics of the game development company, it should become more engaging as more business-oriented individuals and organizations are striving to make their mark in the industry.

2. List of niche ideas in the video game industry that you can specialize in

The video game development sector is one in which operations such as the production and distribution of video games are carried out. These activities include design, documentation, installation, and support services. Operators in this sector can decide to be involved in one or more niches depending on the size of the business and their financial capacity.

 Small companies usually stick to one or two niches, while large companies due to their financial capabilities can get involved in all niches. Niches are typical of what sets a business apart or what they are known for in the industry.

 Therefore, some of the niche areas that a video game development company might decide to specialize in are:

 Action video games, Shooter video games, Sports video games, Adventure role-playing games, Role-playing video games, Racing video games, & Strategy video games.

3. The level of competition in the game development industry.

The game development business is rigid with the competition in order to attract the attention of gamers and other operators such as the publishers in the sector. However, in competing with others in the sector, one does not have to be in a particular position, although at times this could be of enormous benefit.

 When it comes to video game development, all it takes is to create a video game that will appeal to the average gamer and make the game viral or popular. This is why a serious game developer must get a serious and knowledgeable programmer and a good graphic designer, regardless of pricing, in order for them to achieve an excellent result that will be pleasing to customers.

 There are numerous video game developers around the world who are not even based in the United States of America but who have many Americans hooked on their game. Therefore, if you choose to start your video game development business in the United States of America, you should be aware that you will not only compete with players in America but also around the world.

4. List of well-known brands in the video game industry.

Each industry has brands that stand out and this is due to various reasons such as their advertising strategies, how long they have been in business, their investment portfolio, or the number of games developed that have been successful. Before starting a business, it is best to understand the best in the industry as this will help you improve your strategies and game plan.

 Therefore some of the leading video game development companies in the United States of America and around the world are;

 Electronic Arts, Ubisoft, Konami, Nintendo Co. Ltd, Activision Blizzard, Sony Corporation, Microsoft, & King Digital Entertainment.

5. Possible threats and challenges you will face when starting a video game development company.

The business of video game development is just like any other business that faces threats and challenges. If you are about to start your own video game development business, then you should be prepared for any threats and challenges you will face especially in the presence of already established video game developers in the industry.

 Therefore, there are some challenges and threats that you will likely face as a video game development firm in the United States of America; unfavorable government policies, the global economic recession that will affect the purchase of new games by customers who may choose to stick with their old games, and even the arrival of a competitor in the industry. There is nothing that can be done about the challenges and threats a business faces, however, being proactive will go a long way in ensuring that the business stands up to any challenge.

Starting a Game Development Company Legal Matters.

1. The best legal entity to use for a video game development business.

When starting your video game development business, it is very important to choose a legal entity that is suitable for your business. A legal entity should be one that will provide the necessary benefits for your video game development business as a limited liability while ensuring that your business looks professional enough when it comes to video game publishers and/or investors. 

Before choosing a legal entity, however, you need to make sure that issues such as the organization of the business and legal issues related to intellectual and physical property have been resolved. There are however four entities (sole proprietorship, partnership, corporation, and limited liability company) that you can choose from, however, it is best to seek the advice of a lawyer or even an accountant to help you decide which legal entity would be the best for your game development business.

2. Intellectual Property / Trademark Protection.

In the game development industry, data breach and theft can be considered a very serious problem, which is why game developers usually seek to protect their intellectual property. While applying for intellectual property protection can take a long time and become a stressful undertaking, if you are interested in protecting the works you have developed, then you would take all necessary means to ensure that your property is duly protected by the relevant authorities.

 In addition to protecting your data, you can also protect your company logo, the software used in the development of your game, your jingles, and even your multimedia production concepts, anything you feel when used by your competitor will give them an advantage over you should be protected. 

Applying for intellectual property protection requires that you contact an attorney who understands the type of industry you are in and who is experienced in intellectual property protection to begin the process for you. The attorney will need to submit an application to the USPTO and will let you know everything that will be required of you to have a successful application.

Do you need professional certification to run a game development company?

The business of video game development is one where creativity and technical skills are needed to create cutting-edge games that will help attract the right target market. In order for your company to stand out and to ensure that customers gain the necessary confidence in your abilities, you should work to acquire the right certifications in your areas of specialization. These professional certifications are not mandatory but will help your business move forward.

 Therefore some of the professional certifications you should work to acquire for your video game development company are;

 Object-Oriented Programming Languages ​​(OOP), eg. Java. C and C ++,  Software product development, User interface, and user experience (UI / UX) design.

 It should be noted that the more qualifications you acquire, the greater your customer's trust and the easier it will be for you to partner with mega gaming companies.





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