Did you know that, of all the game development companies that have failed over the years, 69% have died from self-inflicted wounds? Also, that 13% of all statistics you read are completely fabricated?
FOG BlogThe Under the Hat series of articles by FOG CEO Ed Dille are our just one of our ways of returning value and expertise to the game development, licensing and publishing community worldwide. We hope that you find these insights useful and we welcome your comments and discussion.
In the mix of 168 distinct licensing categories, “interactive” looms large as a potential revenue generator, and some sources believe it will even eclipse toys and games as the primary category in the long run. From my point of view though, that simply isn’t going to reach its full potential until licensors overcome some misconceptions about the interactive entertainment industry and learn how to properly engage and collaborate with that industry day-to-day instead of once or a few times a year.
Everyone loves original IP, but let’s face the facts. We live in an industry where publisher-controlled and -licensed intellectual properties comprise the bulk of available work. So if you aren’t out there hustling opportunities to bid on these requests for proposal, you are not maximizing the value of your studio.
As the chief F.O.G. (F#@&ing Old Guy), I have learned that people tend to fight about two things in life — sex and money.
In game development, everyone is too busy to be getting any on a regular basis, so it just comes down to money. And the most amazing thing I’ve learned is that, despite years and years of experience bidding projects, a lot of people still set themselves up for a fight when they really can avoid it by changing their approach just a little bit.
Welcome back and thanks to those of you who reached out after our first issue last month to tell us you liked the value we were bringing in the newsletter. Love the feedback and please keep it coming. As you get this issue, many of you will be headed off to the Game Convention in Leipzig, Germany, what has in effect become the largest interactive industry trade show given the demise of E3.
Game development is a very intense process and it is natural for the tactical focus on project execution to pull resources and mindshare away from strategic planning and marketing for the studio as a whole.
First, thanks to the many of you who told me during my recent road trip to Lyon, Austin GDC, the Tokyo Game Show, and the London Licensing show that you really enjoy this e-newsletter.
Most people who have been in the games industry a long time like I have would call 2008-2012 the most difficult time most folks have faced in our history, eclipsing even the fabled crash of 1983. Others would ask how could that view be possible when the market as a whole continued to grow (albeit at a slower pace than prior to the downturn) throughout the period. The answer is because despite limited successes that drove the top line higher, fear and uncertainty about how best to replicate those results created paralysis in many buyers, and uninspired ambulance chasing in others. How do independent development studios not only survive economically uncertain times, but also become indispensable assets to their publishing partners during this time? Honesty, Integrity, Transparency, and Relationship!
In the current economic climate, we are bombarded with numbers at every turn. And with the exception of declining oil prices, it is difficult to find something in the media to get excited about.