business plan for video game company

In-Depth Guide to Create a Business Plan for Video Game Studio

• Last Modified: February 24, 2023

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This article will first discuss the motivations and advantages of having a business plan. If you’re launching your first game, then a business plan might not be necessary now. Then, the main sections of a business plan will be detailed and examples of a fictitious studio will be given (in green).

Throughout this guide we cite a fictional video game studio for ease of reading, but all of the entrepreneurial and management mechanics explained are just as relevant and useful for a self-employed person, for an informal group of devs or for any industry organization that does not necessarily see itself as a studio yet. Each plan business is different. This guide is an example of a structure and should be modified based on the reality of your studio and projects.

Table of Contents

You might not need a business plan  now.

Before starting, I must warn you. A well-crafted business plan can be a valuable tool for your video game studio as you navigate the growth of your business, but it is not always essential, especially for indie game developers launching their first game. Most of the time, I recommend to start building a pitch instead of full-fledged business plan. This article will help you to do so: Mastering the Art of a Successful Video Game Pitch: A Guide for Indie Game Developers .

(If you are still not sure, my contact info are at the very bottom of this page.)

What is a Business Plan in a Video Game Studio Context

A business plan is an essential tool for setting goals and outlining a clear path to achieve them in the context of your video game studio. As the owner or founder of a video game studio that has already launched a first video game, I understand that you are looking for advice on how to create a comprehensive and compelling business plan. The plan not only showcases your game(s) but provides a comprehensive overview of your company, team, resources, finances, marketing strategies, player community, operations, and development processes.

The purpose of a business plan is to present a clear and concise picture of your studio, from its past and current operations to its future plans. It’s an opportunity for you to showcase your vision and drive to potential investors, partners, and stakeholders, demonstrating that you have a solid understanding of your industry and market, as well as the skills and resources necessary to achieve your goals.

Why  and When a Video Game Business Plan

As the owner/founder of a video game studio, you may find yourself considering the creation of a business plan at various stages of your business journey. Whether you’re just starting out or have already launched your first game, a well-crafted business plan can help bring clarity and focus to your future plans and projects. Here are some benefits you can expect to gain by creating a business plan:

• Ensure a strong start for your business
• Clearly define your short, medium, and long-term goals
• Attract investors or launch a successful crowdfunding campaign
• Build credibility with partners and employees
• Streamline your development process and manage operations efficiently
• Secure publishing partnerships
• Hire top talent, like an executive director or key employees
• Explore opportunities for acquiring or merging with other businesses

Executive Summary

The executive summary is an important section of your business plan. It provides a condensed overview of the entire plan, including the financial appendices, in a one-page format. This section is usually written last, after all other sections are complete.

For your convenience, I have included examples in this guide that use a fictional video game studio (Emperor’s Studio) and its first game (Empy). Y ou will find these examples written in this color.  If you want the .docx template, simply use the contact form at the bottom of this page to request it from me.

Business Overview

In this section, we give an overview of the current business and its past.

Introduction

Start with an introduction paragraph and explain how the studio was founded (if applicable). Describe your tasks, those of your partners and employees if you have any.

Emperor’s Studio is currently managed by two people. Founder 1 & Founder 2 are longtime partners in the game development industry who strive to keep the gameplay, fun and quality at the highest level in their games. The business is a small indie game studio based in [a city]. Founder 2 is the main programmer, developer, and designer while Founder 1 is the concept and pixel artist, scenario writer and community manager.

The company focuses on combining video games, comics with the interactivity and interconnectivity of an ever-expanding multimedia universe called the Empy’s World. The studio released its own previous game on Steam and have collaborated with many [other businesses and influencers] on projects such as [project’s names].

Management team / Our team

Take care to present your team from its best angle. Describe the professional experience of each member and the detailed responsibilities within the studio

Be consistent with the CV of each member and his Linkedin, because these are details that could be verified later by future investors or partners.

A photo of you, your group and your colleagues will make the document warmer. After all… other humans will read you!

A Word From Us

When possible, we suggest that entrepreneurs write a personal message (maximum 100 words) to further personalize the business plan. This is the kind of inspirational and public message that could be found in the “About us” section of your website.

Business Ownership & Structure 

Specify whether it is an incorporation, a general partnership, a single self-employed worker, etc. 

If applicable, what is the structure of the company’s shares? If you anticipate that the latter will be subject to change in the near future, you can indicate it.

If you don’t know yet, a good start to understand the best structure could start by reading the Wikipedia List of legal entity types by country or to do a quick Search on Google with “Business Structure + [your country]”. Most country have an article about this subject on their website (look for .gov website). 

Emperor’s Studio is registered as a limited liability company (LLC) and is 50% owned by Founder 1 and 50% by Founder 2.

Collaborations / partnerships

Have you collaborated with other companies, studios or artists? Whether it is a contract that you have awarded to others or work for which you have been commissioned, in both cases, it is relevant to explain it.

Collaborator 1 is a veteran book cover and sequential artist who has been working with us since 20xx on Project 1 to help develop our artistic vision. Collaborator 2 and 3 are experienced pixel artists that we have worked with on since 20yy. Collaborator 4 is a skilled and versatile musician that has been able to adapt and implement the audio vision that we wish to execute within our games.

Key planned hires

Explain the type of employee you will need to hire in the near future. Detail each profile sought.

Previous games and collaborations 

Showcase your already launched games. If you have collaborated on the development and release of a game, it is relevant to present it as well, without forgetting to explain how your studio was involved in it.

Current Development : Empy

( empy is the name of the fictional game).

Talk about the current development. If it is not started but you have plans or an idea of ​​the main aspects that will make it up, demonstrate them.

Some aspects that could be mentioned:

• Progression
• Preview Video (trailer)
• Player Experience
• Your future gaming community, but rather briefly, as this section will be scrutinized in much more detail in the sections that follow.
• A website for this game

Other merchandise

If you are going to create and sell promotional merchandise, it would be a good idea to indicate so. For example:

If you have a visual elements, it’s perfect to show them.

Market Analysis

This section presents and analyzes the market. It is very useful if you plan to present it to potential investors or partners who are not in the same industry as us. It allows you to define trends that are specific to your game / studio, for example, a specific game category such as Survival RPGs .

Global Video Game Market

The global video game market value was estimated at xxx USD for the year yyyy. It is also estimated that the market will reach zzz gamers in yyyy and a market value of xxx USD.

Industry Trends

As the owner/founder of a video game studio, it’s important to keep a pulse on the industry trends that may impact your business. In the “Industry Trends” section of your business plan, you should aim to provide a comprehensive overview of the current state of the video game industry, including market size, key players, and any significant trends or shifts that are likely to affect your game(s) and target customers.

Make sure to provide data and research to support your claims, such as industry reports or data from trusted sources. This will demonstrate to potential investors and stakeholders that you have a deep understanding of the industry and that you have taken the time to thoughtfully consider the competitive landscape.

I recommend reading this article I wrote about tools that can help searching video game market data for market size and trends.

RPG & Survival RPG

Survival games encourage the exploration of an open world and keep the survival parts of these games a central aspect of the player’s experience, while in RPG, the player controls the actions of a character immersed in some well-defined world .

Based on market research made from X games available on Steam, Y are tagged both as a RPG and a survival game. 

(Include all your sources)

Competition analysis

It’s important to understand the market environment you’ll be operating in, which includes not only supply and demand but also the competition. That’s why in your business plan, it’s crucial to analyze your direct competitors – studios that have already released or are planning to release a game similar to yours. This will give you a better understanding of the products and development studios in your market.

RPG + Survival Games

Among the best rated games having both RPG and Survival tags, we can find:

•     Yuppie Psycho
•     Darkwood
•     Don’t Starve
•     World of Horror
•     Terraria
•     FTL: Faster Than Light
•     Starbound
•     The Riftbreaker: Prologue
•     Risk of Rain
•     The Binding of Isaac
•     Fallout Series
•     STALKER: Call of Pripyat
•     Dig or Die
•     Foraging
•     Craft In Abyss

Development Studios

The company anticipates moderate competition from development studios of all sizes specializing in Survival RPG game development.

The table below present notable studios that have released at least one game of this genre.

This is where we get into the nitty-gritty details of your plan. I believe that all of the following sections are critical to your success, as they will outline exactly how you plan to achieve your goals. These sections will likely be the focus of discussions and questions with your readers.

Development Schedule and Budget

In this section, you will want to detail the projects you are currently working on or plan to work on soon. Start with a high-level overview and then break down each project into smaller, more manageable parts, providing time estimates for each step.

Milestones (Tied to the Development Schedule)

This section is similar to the previous one, but focuses on milestones that are not directly related to the development process.

• Create a detailed plan for communication, presence and visibility on the company’s social networks, but also through influencers.
• Create a detailed budget explaining the allocation of funds for each of the projects and subprojects required for the development of the game.
• Setup accounting ledgers
• Plan the necessary hiring and projects (if required)
• Create a detailed budget
• Month 1: Start of development
• Game Development / Project / Hiring Milestones
• Half of year 2: game launch
• Net sales of 270K$ during year 2 
• First 1,000 positive reviews during year 3
• Net sales of $ 2.6M$ during year 3

Technology, Software and Tools

This part allows you to list the software, technologies and tools that you use.

Location & Facilities

Indicate your offices and premises if applicable and if you think this would be relevant for the reader. For example, to explain a future business expansion, you can indicate the number of square feet as well as the price of the rent.

We plan to move into a room of approximately xxx square meters very soon, which will cost YYY $ per month. This new space will allow us to carry out the expansion we desire, to hire staff and for everyone to work and meet physically.

Distribution and Sales Plan

As the owner of a video game studio, it’s crucial to have a clear plan for distributing and selling your games. Whether you choose to sell your games exclusively through online distribution platforms like Steam or through physical merchandise, it’s important to outline the details in this section.

If your sales model is entirely digital, simply state that fact in this section. But if you also plan to sell physical products, such as collectibles, you can use this section to explain your approach.

Regardless of your distribution and sales channels, be sure to include the selling price of your game and any other products you offer in this section of your business plan.

Empy will be on sale exclusively through the Steam platform at a price of 19.99 US.

Marketing Plan

marketing plan is a pillar for the success of your business, and in some cases, it may be wise to start with this section before moving on to the rest of your business plan.

The marketing plan section should answer the question, “How do I market my game?” by covering traditional marketing tactics and personalizing them to the video game industry. This section will summarize your marketing objectives, which will be detailed further below.

It’s worth noting that marketing is often the reason why many game developers fail to reach their goals. To ensure that your marketing plan is as comprehensive as possible, you may consider reading our guide “ Indie Video Game Marketing Plan: Stand Out in a Crowded Marketplace ” in parallel with working on this section of your business plan.

Marketing Objectives

We summarize here the objectives of the marketing plan which will be detailed below.

Emperor’s Studio ‘marketing objectives are to:

• Solidify brand identity as a notable studio in the specific genre of Survival-RPG
• Secure sales of the games and products
• Highlight the company’s commitment to continuous product improvements that meet the specific needs of its community and customers
• Increase and maintain the number of players within the community of Emperor’s Studio
• Start and increase the fan email list

Video Game Marketing Campaign Strategy

To effectively reach as many players as possible and achieve a successful return on investment, your marketing strategy should take into account multiple aspects.

A strong website will showcase your latest news, provide text content and articles that help you stand out in search engines for your games and products, and serve as a hub for press releases. By doing so, bloggers, journalists, and media outlets will have access to all the information they need to spread the word about your games.

To break down your marketing strategy into manageable parts, consider dividing it into three categories: pre-launch, launch day, and post-launch.

Pre-release marketing tactics

Explain the marketing efforts you plan to make before the game launches. Ideas include:

Steam store page, tags and notification. 

• Developer announcements. 
• Steam Store Widget. 
• Localization (Languages ​​and translation). 
• ‘Coming soon’ Steam Page. 

Connect with Steam Curators

Valve published a 30 minute video about Building Your Store Page and Publishing Your Application.

This explain how to setup your store and game pages. Their graphical assets template can be found here .

For each studio’s game that will be released on Steam, including Empy, a page for the game will be created before the game is released. It will contain all the information that identifies the game, three screenshots and its characteristics so that it can be discovered by the gaming community, including thematic, gameplay, art style, and sub-genres. The potential customers can add it to their Wishlist and steam will notify them when it will be released and available to purchase. The potential customer will also be notified if the game is discounted and she / he has not purchased it yet at that moment.

Developer announcements

Announcements will be made from the website, but also through the Steam system, to share the progress that is gradually leading to the big day of the launch. It’s a way to create and maintain the “hype” before its release, and to be able to interact with the community that is interested in it.

Steam Store Widget

Steam provides a way for developers to integrate a widget into their website that displays a short description of the game and links to the Steam purchase page. When the latter has not yet been released, we can then see the “Add to Wishlist” options and this becomes a way of quickly creating a link when a potential player goes to the website with her / his Steam Wishlist, thus strengthening his commitment to the purchase.

Language and translation (localization)

All dialogues will be in json for easy translation. Thus, the game benefits from increased visibility towards players speaking one of the languages ​​into which the game will be translated. Thus, by considering all non-English speaking players who represent 58% of Steam users , Emperor’s Studio is strengthening its place in the market and securing market share that is impossible otherwise.

‘Coming soon’ Steam Page

A “Coming Soon” page will be created so that the game can appear in the steam search and that players can add the product to their Wishlist. Then they will be notified on the launch day.

Emperor’s Studio will contact Steam curators from the platform’s already integrated tools that allow 100 curators to be offered keys for their members to review the game. Therefore, the company will carefully choose the best 100 curators who have the best profile and audience aligned with Empy.

Release Day Marketing

Explain the marketing efforts you plan to deploy the day the game’s launch.

When the studio will launch its games, the official Emperor’s Studio Twitch channel will be live and broadcast a playthrough. In order to accentuate this hype, the company will sponsor influencers to play live on their own Twitch channel as well.

After Launch Marketing

Explain the marketing efforts you plan to deploy after launching the game. Here are some ideas:

Steam Organic Visibility

• Influencers campaigns (read our Ultimate Indie Game Guide to Influencers)
• Social media & Advertising
• Game festivals (PAX)

Emperor’s Studio is aware that the launch of the game is not the finish line, but rather the start line. All the work and planning done previously will allow better visibility and launch of the game and will also facilitate the progress of the next marketing efforts below.

Steam wrote in its developer documentation that when a game is successful, it could be shared on the platform’s main page. We therefore speak of the principle of “organic visibility”. Concretely, the sections on Steam are as follows:

• News and trends
• Top Sellers
• Promotions (when activated)
• Friends news feeds when the purchase of the game is made, screenshots are shared and achievements earned
• The discovery queue

In addition, for each major update, if there is any, the studio will create and share its patch note with the Steam community in order to benefit from increased visibility of the platform, which Steam sometimes calls “Update Visibility Rounds”.

Beyond all this, a “standard” visibility is offered through the Steam catalog based on the tags and style of each studio game.

Connect with Indie Games Influencers (on Youtube, Twitch, Facebook Gaming…)

The number of unique channels streaming on Twitch reached 10.6 million in 2020 (Q3) while 913,000 unique channels streamed to YouTube Gaming the same year  [1] , reaching 100 billion hours of video game content watched on the platform.  [2] Therefore, among the highest marketing priorities of the studio are the promotional campaigns that will be carried out by some of these influencers for the studio, in the form of contracts and sponsorships. Emperor’s Studio will carefully select the channels that are most likely to contain an audience interested in the company’s games in order to obtain the best return on investment.

A comprehensive tactical plan could be developed to effectively execute this marketing aspect. This will include among other things the communication strategy with influencers (what will be presented and “how”), an exhaustive list of interesting influencers with information on their channel (to get in touch in a personalized way) and the follow-up method.

Social Media & Advertising

Social networks such as Facebook, Twitter, Twitch, Youtube and Discord, although they all have a slightly different function, are also a pillar of the marketing strategy at Emperor’s Studio. These social networks will serve to inform fans, interact with them through various means, promote products’ launch and consistently show presence to them over a long period of time, unlike live streaming with influencers whose goal will not be to give a long-term and multifaceted experience around the studio’s universe. Some social networks like Twitter, but also Facebook, can be used to communicate relevant information for the press and journalists in order to receive press coverage.

Again, a comprehensive tactical plan could be developed to effectively execute this particular marketing aspect. Marketing managers at Emperor’s Studio will use it to understand communication strategy, quantify objectives, perform analysis and control of various KPIs, and plan the release schedule.

Game Industry Events

Participating in industry events such as GDC, PAX and MomoCon Convention and many other is part of Emperor’s Studio ‘marketing strategy. This investment should help acquiring contacts, enhancing the brand reputation and increasing awareness among our audience (the gaming community).

A mailing list is one of the most intimate and solid ways to connect with fans in a studio. It also helps to get to know them better. With a good communication strategy in place, the studio will be able to use this powerful marketing tool in the long term. If you choose to adopt this strategy, indicate and explain it.

Intellectual Property

This section is often overlooked by business plan writers, but is sought after by readers, especially in a software development context. Future partners or investors want to know if you own the IP, and if so, what does it include in more detail.

Emperor’s Studio’s games are designed to ensure the protection of its revenue-generation potential and long-term sustainability of the business. The Company has developed an IP committee mandated to establish policy and guidelines surrounding IP application and access to confidential information. The IP strategy surrounds the software algorithm, networking and database design, game play and game design elements. Therefore, the storyline, characters, arts, music, and packaging design are copyrighted.

Key metrics (KPI)

In summary, Key Performance Indicators (KPI) are indicators that allow you to compare your studio’s results against set objectives or industry standards. KPIs can be marketing or operational in nature in order to measure performance, but they can also be associated with company finances.

Each KPI can be further developed in the plans concerning them and by the person responsible according to the strategies and objectives evolving over time, but while keeping a modest number of KPIs so that they remain effective, meaningful and SMART (Specific, Measurable, Attainable, Relevant, and Time-bound).

In the case of Emperor’s Studio and its icming launch, the following KPIs would be the most important:

• Steam Review score and number
• Steam community and player engagement
• Steam Wishlist, paid download
• Influencers reviews and views
• Google Analytic (website and Alexa)
• Facebook likes, impressions and engagement
• YouTube views, engagement and subscription
• Backlinks from press coverage

Partnership with a publisher

Explain the business relationship you have with your publisher. If you don’t have one and / or are currently looking for one, it’s a good idea to indicate it here. The article Publishing Deal for Indie Video Game: how to research, find, negotiate and secure your partnership with a publisher could be useful.

Emperor’s Studio is currently working to identify video game publishers having a “fit” with the studio, its culture and its vision in order to pitch its future development projects and gather and analyze the best offers.

The company also considers the possibility of doing business with independent indie financing funds (sometimes called “syndicate”) for the advantages that this could provide in the longer term.

Financial Plan

Key assumptions.

The key assumptions summarize what must happen in order for the business plan to be carried out correctly. They can be taken from historical company data, industry benchmarks or smart guessing . These assumptions can be revised and evolve over time, just like the financial plan.

The following assumptions were made in order to build the financial planning:

• An amount of 250,000 $ will be raised from a publisher or investors to develop and market Empy.
• The number of copies sold by the end of Year 3 will be 73,940.
• The sales distribution of these 73,940 sales has been based on the Product Life Cycle theory.
• The sale price will be $ 20 US.
• A Steam Commission of 30% of the sales is planned for each sale.
• The proportion of games sold at a discount compared to the total number of copies sold is planned at 25%.
• The average discount of the sale is forecasted at 30%
• The portion of the revenue going to publisher is estimated at the full amount of the loan plus 25% of the sales during years 2 and 3.
• The debt owed to the publisher will be totally cleared at the end of year 3. The total amount is planned at 250,000 $ (initial amount) plus 25% of the sales during year 2 and 3, for a total of 469,187 $
• Once the game launched, an additional amount of 50,000 $ will be spend on marketing, 50% during the first 6 months and 50% for the following 12 months, mainly funded from the net profit of the sales.
• At year 3, the amount of cash, before the corporate taxes and dividends, and after having paid the publisher loan, should be of $ 187,723.

Use of Funds

Explain how the funds will be used and the resulting financial plans. May be accompanied by financial models, data and tables.

As indicated in the financial forecasts below, 100% of the amount will be allocated to the development of the game Empy and its marketing. The studio will raise $ 250,000 US.

Sources of Funds

Explain where the funds come from if they have already been raised.

Currently, Emperor’s Studio is actively seeking the best editor or investor for its project.

Financial Forecasts

Financial forecasts provide an understanding of how a company’s finances will take shape in the future. It is important to remain realistic and consistent in order to be convincing with seasoned investors.

Financial forecasts are divided into three broad categories:

• Income Statement: shows income versus expenses for a given period of time (usually 12 months).
• Cash Flow Projection: It will show how the money will be used and prove that a positive cashflow will be generated in order to be able to repay debts.
• Balance Sheet: This section is often compared to a “snapshot” of the business at a future date showing the net worth of the business with assets, liabilities and equity.

If you need a template, simply use the contact form above to request one from me.

The appendix consists of attaching any document that could be useful and complement the business plan. Sometimes it can be a pitch deck to present the game that is coming soon in a much more visual way. 

The details of the financial plan are shared as an appendix in Excel format. 

Additional Resources

• Send me a message (below) so we can discuss your business plan, publisher research or any other project!
• My lengthy guide on (Indie) Game Marketing Plan – Stand Out in a Crowded Marketplace should help you understand, elaborate and write your marketing plan in much more details
• The Ultimate Indie Game Guide to Influencers could be helpful if you plan to launch an influencer campaign for your game
• If you think a crowfunding would be the right way to fund your development, I covered the topic in our Kickstarter for Indie Games: A Comprehensive How-to Guide with Examples, Tips and Templates
• Liveplan : a platform that streamlines the drafting process of writing a business plan and automates many steps in the creation of financial forecasts.
•  Valve’s article about Steam’s Features And Tools, Marketing

If you have any questions or comments about this article, feel free to let me know in the form below.

Mastering the Art of a Successful Video Game Pitch: A Guide for Indie Game Developers

Creating a Winning Business Model and Competitive Analysis for Your Indie Game

Lean Startup Principles for Indie Game Development: Planning, Prototyping and Launching Your Game

Publishing Deal for Indie Video Game: how to research, find, negotiate and secure your partnership with a publisher

How to Successfully Raise Funds for Your Video Game Studio

How to Put The Right Price on a Video Game – A Guide for Indie Studio

Feel free to reach out to me via Discord  at   Galabyca#5789  (this is case sensitive). You can  share me your project and we’ll discuss how I can help you. Additionally, if you have any comments or questions about the last article, don’t hesitate to send them my way through Discord as well .

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Video Game Business Plan

Start your own video game business plan

Pixel Frontier Studios

Value proposition.

Pixel Frontier Studios creates immersive, narrative-driven video games that foster strong emotional connections with players and explore unique themes and settings.

The Problem

The gaming industry is saturated with repetitive content and a lack of diversity in themes and storytelling. Gamers are looking for unique, captivating experiences that push the boundaries of conventional gaming.

The Solution

Pixel Frontier Studios focuses on creating high-quality, innovative games with memorable characters, engaging storylines, and diverse settings. Our games provide an emotional experience that keeps players invested and craving more.

Target Market

Our primary target market includes:

• Gamers aged 18-35 seeking narrative-driven experiences
• Individuals who enjoy indie games and unique concepts
• Gamers who appreciate games with diverse representation and themes

Competitors & Differentiation

Current alternatives.

• AAA game studios producing high-budget games
• Other indie game studios
• Mobile gaming companies

Pixel Frontier Studios’ commitment to diverse storytelling and innovative game mechanics sets us apart from competitors. Our team’s passion for creating unique experiences and our attention to detail ensure high-quality games that resonate with players.

Funding Needs

• Office space and equipment: $150,000
• Software and licenses: $50,000
• Salaries and benefits for the first year: $600,000
• Marketing and advertising: $100,000

Initial game development: $500,000

• Total initial funding needed: $1,400,000

Sales Channels

• Xbox Game Store
• PlayStation Store
• Nintendo eShop
• Direct website sales

Marketing Activities

• Social media campaigns
• Influencer partnerships
• Gaming conventions and expos
• Sponsored events and tournaments
• Press releases and PR

Financial Projections

2023: $1,200,000

2024: $2,000,000

2025: $3,000,000

Expenses/Costs

2023: $1,400,000

2024: $1,600,000

2025: $1,800,000

2023: -$200,000

2024: $400,000

2025: $1,200,000

• Secure funding — June 1, 2023
• Establish office space and equipment — July 1, 2023
• Complete hiring and onboarding — August 1, 2023
• Begin development of the first game — September 1, 2023
• Launch marketing campaign — January 1, 2024
• Release first game — October 1, 2024
• Begin development of the second game — November 1, 2024
• Achieve 500,000 units sold for the first game — December 31, 2024

Team and Key Roles

Ceo and creative director, oversees company strategy, game development, and overall creative vision, lead game designer.

Responsible for designing and implementing game mechanics, levels, and gameplay experiences

Lead Programmer

Manages programming team and ensures all technical aspects of the game function as intended

Lead Artist

Guides art direction and oversees production of all visual assets for the game

Narrative Designer

Develops and implements the game’s story, dialogue, and character interactions

Marketing Manager

Directs marketing efforts, including public relations, events, and social media campaigns

Partnerships & Resources

• Local game development associations and networks: Collaborate on events and initiatives, access to resources and support
• Game engine and software providers: Secure partnerships for cost-effective licenses and support
• Gaming influencers: Establish partnerships for promotion and feedback during game development

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How to Start a Video Game Company

Video game businesses design and program video games played on consoles, PCs, cell phones, and virtual reality devices. These games are purchased online and in brick-and-mortar stores. Video games often prove quite powerful in terms of providing joy, boosting confidence, improving hand-eye coordination, and connecting people (particularly with the advent of online gaming).

Learn how to start your own Video Game Company and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a video game company by following these 10 steps:

• Plan your Video Game Company
• Form your Video Game Company into a Legal Entity
• Register your Video Game Company for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Video Game Company
• Get the Necessary Permits & Licenses for your Video Game Company
• Get Video Game Company Insurance
• Define your Video Game Company Brand
• Create your Video Game Company Website
• Set up your Business Phone System

We have put together this simple guide to starting your video game company. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Video Game Company Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your video game company?

Business name generator, what are the costs involved in opening a video game company.

The business requires numerous computers, computer monitors, specialized computer software, printers, video game consoles, employees, insurance, and a facility to create the games. Plan on investing tens of thousands of dollars in the initial equipment and facility. However, if you plan on launching a video game business from your home, apartment or other space without the assistance of a staff, it is possible to create a game with a high-powered computer and specialized software. Though this approach will save plenty of money, it will prove to be a Herculean effort unless you have extensive experience making video games.

What are the ongoing expenses for a video game company?

Hardware and software must be replaced and updated. Budget at least $200 to 500 per month for hardware replacements and software upgrades. Plan on spending several hundred dollars per month on utilities, office sundries, and high-speed internet. Employees who work on various parts of the game will command a salary between $40,000 and $100,000 or more per year. A manager, marketing expert and accountant will command a yearly salary of $30,000 to $60,000. A receptionist and beta testers will earn $8 to $15 per hour.

Who is the target market?

The target market is avid gamers. Everyone from kids to middle-aged adults play video games. Millennials are especially passionate about video games. It makes sense to target these young adults as they have enough discretionary income to purchase video games on a regular basis.

How does a video game company make money?

This business makes money by creating fun and intriguing video games for video game consoles, PCs and arcades. These games are sold to the masses. There is also the possibility of generating money through merchandising, like creating statuettes, T-shirts, etc.

Video games typically cost between $19.99 and $69.99. In general, high-quality video games are sold for $49.99 to $59.99 when brand new.

How much profit can a video game company make?

This type of business has the potential to make hundreds of millions of dollars. Video games have never been more popular. The rise of online gaming has made video games that much more appealing to the masses. The profit potential is unlimited.

How can you make your business more profitable?

Give gamers the option of purchasing in-game upgrades. As an example, Activision Blizzard has made millions through in-game upgrades without investing a considerable amount of money in developing additional games or extensive programming for existing games. It is also possible to establish agreements with console providers to secure a portion of the proceeds stemming from fees paid for online play.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your video game company is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a video game company. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Trademark & Copyright Protection

If you are developing a unique product, concept, brand, or design, it is prudent to protect your rights by registering for the appropriate trademarks and copyrights.

Learn more about trademark and copyright protection

The nature of legal requirements in distance education is ever changing, especially in regards to copyright laws. Here is a frequently updated resource, which can help keep you aware of the legal requirements .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Video Game Company needs and how much it will cost you by reading our guide Business Insurance for Video Game Company.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a video game company

Connect to prospective game buyers through the channels they are most frequently exposed to. Most gamers are active on the web including social media, YouTube, and game streaming sites. Advertise on these sites and services. Some video game companies have also found success advertising with TV commercials and magazine ads. The promotional method your company settles on will ultimately hinge on the type of game you are attempting to sell. Perform market research to determine the appropriate mediums to best connect with video game players who are most likely to be interested in the particular video game(s) your company creates.

How to keep customers coming back

The best way to attract and retain customers is to create a high-quality video game that proves enjoyable for a long period of time. Plenty of video game players develop an allegiance to specific game-making companies based on their enjoyment of the company's initial games. Strive to develop a deep and meaningful connection with gamers by providing them with enjoyable content and they will become loyal customers. Also, consider offering a free download of one of your game's stages or levels to whet consumers' appetites.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

If you are looking for a way to entertain and provide people with an opportunity to enjoy a shared experience, starting a video game business will prove quite rewarding. Video games bring people together in-person for fun and exciting gaming experiences. They also connect people by way of online gaming experiences. It will certainly help to have a background in electrical engineering, design and/or computer science if you decide to start a video game business.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a video game company?

Each group of specialists works on its unique portion of the game(s). Designers focus on generating aesthetically pleasing game graphics. Programmers write the game's code. Writers create the game's storylines. Testers play the game in-depth to ensure it doesn't have bugs (flaws). The video game company owner often serves as the overarching manager, delegating work and making executive decisions. Meetings are quite common to ensure each group of specialists is on the same page as the game progresses.

What are some skills and experiences that will help you build a successful video game company?

Making video games is a complicated endeavor. It is not enough to simply enjoy video games. The best video game company entrepreneurs have a genuine interest in computer programming, electrical engineering, design, and script writing. Ideally, the business owner will have experience in each of these realms. It will also help to have a business background in which the entrepreneur has established and nurtured relationships with other professionals. The relationships you form in this business will go a long way in determining your company's success.

What is the growth potential for a video game company?

The video game industry is growing at quite the rapid pace. Video games are incredibly popular due to recent improvements in graphics, the rise of online gaming, and the arrival of virtual reality technology. Build a successful game and your company will have the potential to grow quite rapidly. The key is to make a name for your company with one hit game that builds a fan base and generates momentum toward additional titles.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a video game company?

Network with video game industry experts before launching your business. Find out the exact software and hardware necessary to make state-of-the-art video games. Ideally, you will not attempt to wear numerous "hats". Hire true professionals who have an educational and professional background in various aspects of video game creation, from designing game graphics to programming, physics, script writing and beyond.

Do not assume your first game will be a hit. Oftentimes, it takes years to develop a high-quality video game that reaches a mainstream tipping point. Stick with the business, give your team time to perfect their craft and you will eventually succeed in this competitive business. Above all, the games your company creates should be highly unique. If they are similar to other offerings, generating sales will likely prove difficult.

How and when to build a team

A team is essential to your video game company's success. Even if you are a “jack of all trades” in the context of game-making, creating a game will prove much easier if you add specialists. Hire game designers, programmers and writers to get the company off the ground. You can add beta testers, a manager, an accountant, a marketing expert, a receptionist and other professionals as time progresses.

Useful Links

Industry opportunities.

• International Game Developers Association
• Entertainment Software Association
• Higher Education Video Game Alliance

Real World Examples

• Avalanche Studios

Further Reading

• Five Realistic Steps To Starting A Game Development Company
• Advice From a Successful Video Game Company Owners
• Profile on a Successful Company
• Guide to Entering the Industry

Have a Question? Leave a Comment!

Your Indie Game Studio business plan (and how to get one)

• by Zachary Strebeck

So you want to start an indie game studio ?

First thing’s first:

You need a business plan.

In this post, you’ll find a comprehensive indie game studio business plan to use in starting your own game company. I’ll give you a few options, as well as some important resources to get you going with your new business.

Let’s get started.

First – get all of my FREE video game law eBooks by signing up below!

Why do you need a business plan.

You need to realize one thing:

Creating indie games is an extremely tough business.

Most games will fail.

That’s right. Read it again.

No matter how good your game is, chances are that your game will not make back whatever time or money you put into it.

And that’s okay,  if  you’ve planned for it.

Check out this talk by Rami Ismail of Vlambeer for some serious truth about the indie games business:

A business plan will help you to figure out just how you’re going to deal with the realities of the indie games business. For example:

• You’ll explore how much your business will cost to run, so you know how much you need to make back
• You’ll delve into the possible revenue streams and feasibility of them
• You can get some plans in writing for researching the target market and how you can sell to them (something most indie devs don’t bother doing)
• Other issues are addressed, like what makes your game unique (be honest with yourself), whether you need some funding or investors, whether you’ll be seeking a publisher, and more!

The business plan also serves as a template that you can always refer back to when questions come up during development.

It should also be a living document that is updated throughout development as the situation changes.

Indie game studios – why they are unique and why they’re not

Indie games are different.

They’re different than other businesses:

• Very different from the local mom and pop store
• Quite different than your average tech startup
• Extremely different than a big-budget AAA game

But just because there are many differences in the realities of the indie game business, there are a ton of things that are exactly the same.

In fact, most businesses have many things in common.

• Most businesses fail.
• Most businesses struggle to have working startup capital.
• Most businesses can benefit from some market research up front.

As with most creative businesses, figuring out whether the audience wants your game or not is extremely difficult for indie game developers. It’s a hit-driven business, which means that there’s usually some kind of creative “spark” that draws audiences in.

However, if you understand market research, marketing, and public relations, you can better yourself for appealing to a certain audience and selling directly to them.

Startups usually thrive by finding a problem that people have, and providing them a way to solve it (hopefully in a way that they pay for). Or they see a hole in an industry that is not being properly served, and fill that hole.

Others try to outdo a competitor, making a better product. But that’s a much more difficult task.

What can indie studios learn from this?

Looking at the market that’s out there and seeing what actual players are looking for is a great place to start. While many developers start with the idea, this is putting the cart before the horse.

Creating a product and hoping that there’s an audience for it is the opposite of how most successful businesses work .

There’s a very good reason for this:

It doesn’t make much sense.

You’re putting a ton of time, money, and effort into creating something that you don’t have any clue if it will be even moderately successful.

On the other hand, if you know the industry, know what players are looking for that they’re not getting, and can provide that experience to them (in a form that has engaging graphics, fun gameplay, and other great aspects), I believe that you’re enhancing your chances of finding an audience.

All of this can be addressed in a business plan, as we’ll see below.

Keep reading!

Different models for business plans

There are any number of business plan models out there, so which one you choose is entirely up to you.

The main ones are:

The Lean Canvas

This is a one-page business plan based on the book The Lean Startup. You can  download a template here . Honestly, it’s my preferred method of business planning, because it gets right to the heart of the important stuff:

• What problem are you solving?
• Who are you potential customers?
• What is your unique selling proposition?

Rather than messing around with Executive Summaries and other stuff, you have the ability to pump out a plan in 20 minutes and adjust accordingly as you research, develop, and market your game.

A traditional Business Plan

For a more traditional plan, you generally have 8 sections:

• Executive Summary (an overview/summary of the business plan)
• Description of the Business (Information about your business and why you are unique)
• Market Analysis (who are your potential customers?)
• Organization and Management (the legal structure and who’s in charge of your company)
• Your Product (describe your product, including customer benefits)
• Marketing (how will you market and sell your product?)
• Funding (do you need to raise any funds or will you fund the business yourself?)
• Financials (project your business’s financial future)

It’s much more formal and in-depth than the Lean Canvas method, which makes it a little more difficult to iterate on. The Small Business Administration has some templates and examples on their site that should help you out.

Check it out here.

Working with partners – what are your expectations?

There’s one more important step:

Whenever I have clients who are working in a partnership or multi-owner business, I like to have them fill out a short questionnaire.

Meaning, they each have to fill it out without discussing the answers with each other first. This helps me ensure I’m getting the honest answers.

If they do match – that’s great!

If they don’t match , it means that there could be some serious issues and expectations that need to be aligned before moving forward.

What are the questions? Something close to the following:

• What is the proposed business model? How do you plan to actually  make money with the business?
• Is fundraising going to be necessary? Is there a plan in place for that fundraising?
• What day-to-day responsibilities will  you  have in the business? What time commitment will that involve?
• What day-to-day responsibilities will  your partners  have in the business? What time commitment will that involve?
• Is there any plan to add other people to the business? What are the conditions for that happening?
• What’s your exit strategy?

Those are the most important questions as far as overall strategy goes.

Some of these things (#1 in particular) will be dealt with in writing up the business plan, but it’s still important to make sure you’re all on the same page.

Sign up below to get my FREE game development legal eBooks!

What are some resources you can use to learn about starting running a business.

Still feel like you’re clueless?

Luckily for you, there are a bunch of great resources out there to help new businesses.

Here are some of my favorites (some of which I mentioned before):

• The Small Business Administration website
• Your local government’s business site – many local governments have checklists and walkthroughs about the specific steps to take in starting a business in that particular place.
• Running Lean  (you can start with  The Lean Startup , but I feel that Running Lean is more “actionable”)
• Rachel Presser’s  The Definitive Guide to Taxes for Indie Developers
• My podcast,  The Legal Moves Podcast , which has a ton of interviews with indie devs who have been where you are now

Hopefully the advice here is helpful for you!

If you have any questions about setting up your indie game company or anything else games-business related,  feel free to contact me . You can also check out my Indie Game Jumpstart Bundle here , for everything you need to start your studio in one package.

Zachary Strebeck

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Table of Contents

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Business Plan Template for Video Game

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting your own video game business is an exciting adventure, but it requires careful planning and strategy to ensure success. That's where ClickUp's Business Plan Template for Video Games comes in!

Our template is specifically designed for video game developers and entrepreneurs, helping you outline your vision, strategy, market analysis, financial projections, and operational details. With this template, you can secure funding, guide the development process, and launch your video game with confidence.

Here's how ClickUp's Business Plan Template for Video Games can help you:

• Define your vision and set clear goals for your video game business
• Conduct a thorough market analysis to understand your target audience and competition
• Create detailed financial projections to attract investors and manage your budget effectively
• Outline operational details, including team roles and responsibilities, development milestones, and marketing strategies

Don't let your video game business idea remain a fantasy. Use ClickUp's Business Plan Template for Video Games to turn it into a reality!

Business Plan Template for Video Game Benefits

A business plan template for video games is an essential tool for video game developers and entrepreneurs looking to start their own video game business. Here are some of the benefits of using a business plan template:

• Provides a clear roadmap for launching and running a successful video game business
• Helps secure funding by showcasing the market potential, financial projections, and growth opportunities
• Guides strategic decision-making by outlining the vision, mission, and goals of the video game business
• Assists in conducting thorough market analysis to identify target audience, competition, and trends
• Enables effective resource allocation and budgeting for the development and marketing of the video game
• Streamlines operational processes and identifies key milestones for the successful launch and ongoing management of the video game business.

Main Elements of Video Game Business Plan Template

To create a comprehensive and organized business plan for your video game venture, ClickUp’s Business Plan Template for Video Game offers the following key elements:

• Custom Statuses: Track the progress of different sections of your business plan using statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect is accounted for and easily manageable.
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to add specific details and information to each section of your business plan, keeping everything organized and easily accessible.
• Custom Views: Choose from five different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to visualize and navigate through your business plan in a way that suits your needs and preferences, ensuring a clear overview of your video game business's roadmap and progress.
• Collaboration: Collaborate with your team members in real-time, assign tasks, set due dates, and leave comments on specific sections, ensuring seamless teamwork and progress tracking.

With ClickUp’s Business Plan Template for Video Game, you can confidently outline your video game business's strategy, secure funding, and navigate the development and launch of your exciting new video game.

How To Use Business Plan Template for Video Game

Creating a business plan for a video game can be a complex task, but with the help of ClickUp's Business Plan Template, you can simplify the process. Follow these 6 steps to effectively use the template and develop a comprehensive business plan for your video game:

1. Define your vision and mission

Start by clearly defining your vision and mission for the video game. What is the purpose of the game? Who is your target audience? What unique features or gameplay mechanics will set your game apart? By answering these questions, you'll lay the foundation for your business plan.

Use the Docs feature in ClickUp to outline your vision and mission statement.

2. Conduct market research

Research is key to understanding the video game industry and identifying potential opportunities and challenges. Analyze the target market, competition, and current trends. Identify gaps in the market that your game can fill and determine how you can position your game for success.

Utilize the Goals feature in ClickUp to set specific objectives for your market research.

3. Develop a marketing and sales strategy

Outline your marketing and sales strategy to promote and sell your video game. Identify the channels and platforms you'll use to reach your target audience, such as social media, influencers, or digital advertising. Determine pricing strategies, distribution methods, and any partnerships or collaborations that can help boost your game's visibility.

Visualize your marketing and sales strategy using the Gantt chart feature in ClickUp .

4. Create a financial plan

Develop a comprehensive financial plan that includes projected revenue, expenses, and funding sources. Calculate the costs of game development, marketing, distribution, and ongoing maintenance. Determine how you will monetize your game, whether through upfront purchases, in-app purchases, or subscriptions.

Use the Table view in ClickUp to create a detailed financial projection for your video game.

5. Outline the development process

Provide a detailed roadmap of the game development process, including key milestones, timelines, and team responsibilities. Break down the development tasks into manageable chunks and assign them to the appropriate team members. Consider using Agile methodologies, such as sprints or iterations, to ensure efficient and timely development.

Track the development process using ClickUp's Board view, where you can create tasks, assign them to team members, and monitor progress.

6. Set performance metrics and milestones

Establish performance metrics and milestones to measure the success of your video game and track progress. Define key performance indicators (KPIs) such as user acquisition, retention, revenue, and player satisfaction. Set specific milestones and deadlines to keep your team accountable and ensure that you're on track to achieving your goals.

Visualize your performance metrics and milestones using ClickUp's Dashboards feature, where you can create customized charts and graphs.

By following these 6 steps and utilizing ClickUp's Business Plan Template, you'll be well-equipped to create a comprehensive and effective business plan for your video game.

Get Started with ClickUp’s Business Plan Template for Video Game

Video game developers and entrepreneurs can use the Business Plan Template for Video Games in ClickUp to create a comprehensive plan for their video game business.

To get started, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to organize your plan into different sections, such as Vision, Strategy, Market Analysis, Financial Projections, and Operational Details
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your plan's milestones and deadlines
• Use the Business Plan View to see an overview of your entire plan in one place, with all the sections and their statuses
• The Getting Started Guide View will provide you with a step-by-step guide on how to use this template effectively
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional information and track important details
• Update the statuses as you work on each section to keep team members informed of progress
• Monitor and analyze your plan to ensure it aligns with your goals and objectives
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How to Start a Video Game Company in 14 Steps (In-Depth Guide)

Updated:   February 9, 2024

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The video game development market is on the rise. With an estimated global evaluation of $217.06 in 2022 and a compound annual growth rate (CAGR) of 13.4% from 2023 to 2030, now is the time to get involved. For gaming companies looking to make a mark, this is a great year to put out your first game.

The good news is that today’s tools, technology, and distribution platforms make game development more accessible than ever. With the right mix of creativity, business savvy, and persistence, the opportunity is there.

This guide will walk you through how to start a video game company. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, opening a business bank account, and more. Here’s everything to know about opening a game development company.

1. Conduct Video Game Market Research

Market research is essential to learning how to start a video game company. It offers insight into developing a business plan, including details on your target market, local market saturation, and trends in products and services.

Some details you’ll learn through market research for your video game company include:

• The most profitable and popular genres are multiplayer online battle arenas (MOBAs), first-person shooters (FPS), sports games, adventure games, and roleplaying games (RPGs).
• Opportunities exist across genres and platforms. The industry rewards creativity, strong visuals and gameplay, and built-in social/community features.

Keys to succeeding in the highly competitive space include:

• Developing innovative, high-quality games with wide appeal
• Creating immersive cross-platform experiences
• Consider creating mobile apps in the form of games and games for handheld devices
• Building a community around your games through streaming, tournaments, social media
• Leveraging free-to-play models, in-game purchases, subscriptions
• Partnering with publishers, platforms, and influencers
• Utilizing data analytics to refine game design and monetization

The key to success in game development is understanding player demand across genres and platforms, crafting quality experiences, and leveraging communities and partners. For developers with unique ideas and the drive to succeed, it is an ideal time to capitalize on this booming, multi-billion-dollar industry.

2. Analyze the Competition

Understanding the competitive landscape is crucial for any new entrant in the video game industry. Performing thorough competitor analysis should be an ongoing process to inform your strategy and positioning.

Some ways to get to know local competitors in game development include:

• For direct competitors, you’ll want to deeply analyze their games across multiple dimensions.
• Examine the genre, platform, and monetization model they are utilizing.
• Study their target audience and demographics.
• Evaluate key features and mechanics, while also looking at strengths and weaknesses in gameplay, graphics, and user experience.
• Review their business model, pricing, and in-app purchases.
• Assess their marketing and distribution strategy, along with their social media and community engagement.
• Consider their branding and messaging, funding and partnerships, company culture, and values.
• Closely analyze competitors’ web presence and digital marketing tactics. Evaluate the website’s functionality, visuals, and content.
• Check SEO optimization and keyword rankings.
• Look at social media followers and engagement. Examine video views and streaming numbers.

Competitor analysis is a key input into strategy, product development, marketing, and operations. It ensures you can craft differentiated, appealing games while converting players into long-term fans.

3. Costs to Start a Video Game Business

Starting a successful video game company requires careful financial planning and budgeting. The initial costs to get up and running can be substantial, and ongoing operating costs pile up quickly. Here is an overview of estimated expenses to factor into your business plan:

Start-Up Costs

• Business entity registration fees – $500-1500 to set up an LLC or corporation
• Legal/accounting fees – $1000-5000 to establish contracts, agreements, accounting systems
• Office space – $2,000-10,000/month to lease office space, depending on location and size
• Computer equipment – $3,000-10,000 for high-end PCs/laptops, servers, accessories
• Game engines and software – $0-$1500/month for licenses of game engines like Unity or Unreal
• Website design and development – $3,000-15,000 for a professional studio website
• Branding and logo design – $500-5,000
• Initial marketing activities – $2,000-10,000 for early promotions and advertising
• Initial hiring – Budget adequate salaries and benefits for early team members, estimate $8,000-12,000/month per employee
• Contingency fund – Set aside at least 10-20% of total budget for unforeseen expenses

Total start-up costs can easily exceed $100,000-500,000 depending on studio size, activities, and location. Fundraising or investors are often needed.

Ongoing Costs

• Rent and utilities – Budget $2,000-15,000 monthly depending on office size
• Salaries – For a small team of 5-10: $50,000-$100,000+ monthly
• Health insurance – $300-800 per employee monthly
• Game engine subscriptions – $0-$5000 monthly depending on team size
• Cloud computing services – $100-$1000 monthly for server capacity
• Software subscriptions – $100-$500 monthly for project management, communication, and design tools from software companies
• Legal and accounting – $2000-$10,000 annually for corporate filings, accounting, contracts
• Marketing and user acquisition – $5000-$500,000+ monthly depending on launch activities
• Customer service/community management – $4000-$15,000 monthly for 1-2 dedicated staff
• Travel and entertainment – $1000-$10,000 monthly for conferences, events, team bonding
• Hardware upgrades – $5000-$15,000 annually
• Ongoing R&D – 10%-50% of revenue reinvested into new games and technology
• Contingency fund – 10%-20% of operating budget for unexpected costs

Annual operating costs often amount to several million dollars for a studio with 5-20 employees. Revenue from game sales and in-app purchases must exceed expenses, requiring financial discipline.

4. Form a Legal Business Entity

When starting a video game business, one of the first legal steps is choosing a business structure. The four main options each have pros and cons to weigh.

Sole Proprietorship

A sole proprietorship is the simplest structure. You operate as an individual with pass-through income and total managerial control. However, you have unlimited personal liability for debts and obligations. This exposes all your assets if sued. For a video game company facing complex regulations and litigation risks, limiting liability is crucial.

Partnership

A general partnership shares control and profit among partners. However, each partner is also personally liable for all partnership liabilities. Disagreements between partners can also impede decision-making. The lack of liability protection makes a general partnership ill-advised.

Limited Liability Company (LLC)

A limited liability company (LLC) offers the best of both worlds – it limits owner liability and allows pass-through taxation like a partnership while providing the limited liability of a corporation. Owners have flexibility in structuring management and profit sharing.

An LLC limits video game developers’ exposure to lawsuits while granting full control over the business. Most startups in the gaming industry opt for an LLC to properly protect the owners’ assets.

Corporation

A corporation shields owners from personal liability but is taxed separately. Income is also taxed twice – at the corporate level and on dividends. There is extensive corporate record keeping and formalities required.

For a small, early-stage video game company, maintaining proper corporate governance can be an unnecessary drain on limited resources. However, large gaming studios often transition to a C corporation structure to prepare for an IPO.

5. Register Your Business For Taxes

One of the key legal steps when forming your video game company is obtaining an Employer Identification Number (EIN) from the IRS. This unique identifier is required to open business bank accounts, apply for licenses and permits, file taxes, and hire employees.

An EIN is essentially your business’s social security number. It allows you to register your company with state and federal agencies. The IRS uses the EIN to track tax obligations like payroll, income, and employment taxes.

Applying for an EIN is free and can be done online via the IRS website . The process only takes a few minutes. You will need to provide basic information about your business entity and ownership structure.

• Navigate to the EIN Assistant and select your business structure.
• Enter the legal name and address of your video game company.
• Select if you will hire employees or file employment tax returns.
• Provide the principal business activity and owner information.
• Review the information and submit the EIN application.

The IRS will process the request immediately and provide your EIN confirmation on screen. Be sure to keep this for your records.

In addition to the federal EIN, most states require registering for sales tax permits and business licenses. Check your state’s website for registration procedures, forms, and minimal costs. Proper legal registrations help legitimize your video game business and keep you compliant as you get up and running.

6. Setup Your Accounting

As a video game startup, meticulous bookkeeping and accounting right from the start is critical. With complex revenue streams from game sales, in-app purchases, subscriptions, and more, you need robust processes to track finances. This ensures taxes are filed properly and the company remains compliant.

Accounting Software

Begin by implementing small business accounting software like QuickBooks . This automates tasks like invoicing, expense tracking, reporting, and reconciliation by integrating with your business bank accounts and credit cards. QuickBooks makes organizing video game company finances easy.

Hire an Accountant

Hiring an accountant provides expertise in filing taxes, preparing financial statements, and advising on accounting practices tailored to the gaming industry. They offer services like:

• Bookkeeping – Recording income and expenses
• Payroll – Calculating wages and tax withholdings
• Cash flow analysis – Monitoring cash coming in and out
• Tax preparation – Filing quarterly estimated payments and annual returns

Expect to invest $1,000-$5,000 annually for an accountant depending on your needs. This upfront expense can prevent costly errors and provide peace of mind at tax time.

Open a Business Bank Account

Maintaining a clear separation of business and personal finances is also critical. Open a dedicated business checking account and credit card solely for company expenses. Never co-mingle personal and company funds.

Apply for a Business Bank Account

Applying for a business credit card is straightforward by providing your EIN, company financial statements, and ownership information. Credit limits are lower than personal cards but sufficient for most expenses.

7. Obtain Licenses and Permits

Before officially launching your video game company, it is crucial to have all required licenses and permits in place. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

On the federal level, you may need to obtain:

• A trademark registration from the US Patent and Trademark Office to protect your studio name, logo, and game titles. This grants exclusive nationwide usage rights and the ability to sue infringers. The process takes 6-12 months and requires submitting an application and legal fees of around $250-$500 per mark.
• Copyright registration from the US Copyright Office to protect unique game characters, stories, graphics, and code. This is obtained by applying and $40 fee along with samples of original work. Registration must occur before any infringement to enable damage recovery in lawsuits.

At the state and local level, typical licenses and permits include:

• A business license that legitimizes your company and allows you to collect sales tax. Applications require a copy of your business formation documents and fees ranging from $50-$500.
• Zoning permits if renovating or leasing office space, costing $75-$500 depending on location. These verify the property is properly zoned and that renovations meet the code.
• Local construction permits for any office fit-out and renovations beyond basic cosmetics. These ensure building safety and proper inspections.
• Fire department permits related to office fire systems, occupancy limits, extinguishers, etc. if mandated for your studio size and layout.
• Health department permits related to employee kitchens, serving food, and other health codes that apply to your office.

Depending on your studio activities, additional documentation may be required such as liquor licenses for game launch events, special venue permits for tournaments, and licenses for warehouse spaces. An attorney can identify all pertinent federal, state, and city-level licenses your particular video game company requires.

The licensing process takes time, so build this into your studio launch plan. Provide detailed business information like legal formation documents, ownership details, office addresses, number of employees, and planned activities. Organizing this information ahead of time expedites obtaining permits.

8. Get Business Insurance

Operating a video game startup without adequate insurance opens the business to major financial risks. The right policies can protect against potential catastrophes that could otherwise bankrupt your company.

Consider a few scenarios: A fire destroys your office and equipment without property insurance to cover damages and rebuilding costs, which leads to permanent closure. Or a visitor slips and falls at your office, sustaining serious injuries.

Without liability insurance, you pay enormous lawsuit settlements out of pocket. Your company could also face a data breach exposing customer information. Lacking cyber insurance means bearing the costs of legal action and regulatory fines yourself.

The right insurance protects against disasters that threaten the company’s survival. Common startup policies include:

• General liability insurance covers legal judgments from bodily injury, property damage, slander, and wrongful termination lawsuits.
• Property insurance reimburses costs to repair or rebuild office space and replace equipment after incidents like fires, floods, or theft.
• Business interruption insurance provides income to continue operations if events force your office to temporarily close.
• Cyber insurance protects against data breaches, network damage, and cyber crimes.
• Errors and omissions insurance covers financial losses from mistakes in services provided.
• Directors’ and officers’ insurance protects individual board members from personal liability in lawsuits.

The process of getting insured involves first determining needed coverage types and limits. Then get quotes from multiple business insurers. Next, select a carrier and policy that meets your needs and budget. Complete applications providing details on your video game company. Finally, pay premiums to activate coverage.

9. Create an Office Space

Having a professional office space lends legitimacy and provides room to grow for a video game startup. It enables collaboration during game development, hosting publishers and partners, and accommodating additional hires. Weigh several options to meet launch needs within budget.

Home Office

A home office cuts costs and offers convenience early on. Dedicate space exclusively for work to avoid distractions. However, limited space can hamper team meetings and expansions. You also sacrifice professionalism meeting clients at home. Expect to invest in a dedicated broadband connection and furnishings.

Coworking Office

Coworking spaces like WeWork provide an instant professional environment with amenities like conference rooms, WiFi, kitchens, and printing. The open layout enables collaboration and networking with other tenants. Monthly costs typically start around $300 per desk. While flexible, Coworking lacks privacy for confidential calls and IP security.

Commercial Office

A traditional office lease provides the most control yet requires upfront capital. Expect to budget $10-$30 per square foot in monthly rent plus taxes, utilities, and other fees. Hire contractors for any desired renovation and furniture purchases.

Signing personally guarantees the lease, so consider forming an entity first. While more expensive initially, a long-term lease enables customization and expansion as your studio scales.

10. Source Your Equipment

Launching a video game studio requires obtaining specialized equipment like high-end computers, servers, software, and furniture. Explore these options to secure needed gear affordably.

Buying new ensures the latest technology and warranty protections. Desktops and laptops fitted for game development run $1,000-$5,000 from vendors like Dell , HP , and Apple depending on specs. Ergonomic desks and chairs cost several hundred per station. Shop smart by waiting for sales events or buying certified refurbished items when available.

Purchasing used equipment through sites like Craigslist , Facebook Marketplace , and eBay can yield major savings, with items discounted by over 50% in some cases. When buying remotely, focus on reputable sellers with detailed listings, maintenance records, and at least a 30-day warranty.

Renting workspaces already outfitted with furniture and computers can also be cost-effective starting. Coworking offices offer move-in ready private offices, potentially saving tens of thousands in upfront investments. However, monthly rental fees still apply for the duration needed.

Leasing business equipment through companies like Dell Financial Services enables paying over 12-48 months. This preserves capital for other startup needs. Lease-to-own plans give the flexibility to upgrade technology before the term ends. Just be sure to negotiate fair monthly rates and avoid predatory terms.

11. Establish Your Brand Assets

Crafting a strong brand identity is crucial for standing out in the competitive gaming industry. Ensure your studio makes a memorable first impression by proactively developing key branding assets.

Get a Business Phone Number

Begin by securing a professional business phone number through a service like RingCentral . Toll-free and local numbers with custom greetings and extensions project legitimacy when prospecting publishers, booking media interviews, and communicating with partners.

Design a Logo

Next, create a logo that encapsulates your studio’s vision. Consider an abstract mark, letterform, or illustrated character logo. Tools like Looka make it easy to develop and iterate ideas. Repeating your logo across websites, game art, merchandise, and promo items trains customers to recognize your brand.

Print Business Cards

To network at conferences and events, business cards from Vistaprint enable sharing contacts quickly. Your founders and developers should also have cards on hand when meeting potential investors and partners.

Don’t forget signage for trade show booths, office wayfinding, and branding exterior entryways. Vistaprint offers fast online ordering of banners, acrylic signs, window graphics, and displays with your logo.

Buy a Domain Name

Securing a domain name is equally important. Aim for yourstudio.com or .game to reinforce branding and trust. Use Namecheap to check availability and register domains affordably.

Design a Website

Building a modern website on platforms like Wix provides a hub for your brand. Showcase games, team bios, job listings, investor info, and contact forms professionally. Or you can hire seasoned developers through Fiverr to handle site construction, saving precious internal resources.

12. Join Associations and Groups

Joining relevant local organizations and online communities can provide invaluable connections and insights for a video game startup. Surround yourself with fellow developers, designers, and gaming entrepreneurs.

Local Associations

Seek out local developer associations like the International Game Developers Association with chapters nationwide. Attend meetups to exchange tips on game engines, monetization, work culture, and more. Conferences like IndieCade enable networking with industry veterans.

Local Meetups

Utilize sites like Meetup to find regular gaming mixers and demo days in your city. These facilitate collaborations, playtesting sessions, and recruiting opportunities. Interacting in person often leads to long-term partnerships.

Facebook Groups

For broader connections, join developer forums and communities on Facebook. The Video Games , Video Game Business Owners – Buy / Sell / Trade , and Video Game Collecting & Discussion have thousands of global members. Share work samples and puzzles to solve. Learn from countless peers simultaneously at any hour.

13. How to Market a Video Game Business

Marketing is indispensable for building awareness and driving sales of your games. Leverage both digital campaigns and real-world promotion to maximize reach across player demographics.

Personal Networking

Start by engaging your personal and professional networks. Existing relationships often convert to early customers for video game companies. Offer exclusive early access or limited edition swag to fans who pre-order or recommend to friends. Word-of-mouth is still a powerful driver.

Digital Marketing

For digital marketing:

• Run Google and Facebook ads targeted using interests like specific game genres, competing titles, and gaming influencers. Geo-target cities with vibrant gaming communities.
• Start a YouTube channel posting trailers, playthroughs, development vlogs, and teasers. Collaborate with influencers.
• Write developer blog posts with behind-the-scenes details to build hype and SEO.
• Promote on Reddit, Discord, and forums related to your game type. Engage authentically with these communities.
• Leverage affiliate marketing partnerships with streamers, sites, and influencers.
• Retarget website visitors with ads and special offers via platforms like Facebook Pixel.
• Optimize for keywords gamers are searching like your genre and platform.

Traditional Marketing

For traditional marketing:

• Attend local gaming conferences and tournaments to demo games and network.
• Distribute flyers and brochures at comic book shops, gaming cafes, and electronics stores.
• Take out ads in gaming magazines and websites tied to your target genre.
• Seek reviews and press via personalized outreach to journalists.
• Utilize billboards, radio spots, and TV ads in specific markets where your game has traction.
• Sponsor esports tournaments and college gaming events to get products used competitively.

Amplify word-of-mouth and digital campaigns through targeted real-world promotion. Analyze data to refine strategies and maximize ROI across channels. Consistent marketing is table stakes for indie studios hoping to break through the noise. Leverage the uniqueness of your games across both digital and traditional avenues to build a fanbase.

14. Focus on the Customer

Providing exemplary customer service must be a priority, even for indie game developers. How you support players builds loyalty that fuels referrals and reviews.

Some ways to improve customer focus in your own video game company include:

• Be available to respond to questions and feedback emails swiftly. A quick turnaround on tech support tickets fixes issues before frustration sets in.
• Monitor forums and social channels to address concerns transparently. Publicly thank users for constructive critiques that improve games.
• Make yourself accessible through Discord chats and Reddit AMAs. Let players feel heard by the studio leadership directly.
• When mistakes happen, offer sincere apologies and make things right. If a release is buggy, gift players free in-game items or currency to rebuild goodwill.
• Surprise inactive users with comeback offers if they churn. Welcome them back warmly if they return.
• Consider refunding dissatisfied purchasers, even if not obligated. Losing some revenue prevents greater reputation damage.
• Thank players who leave positive reviews or endorsements. Spotlight their content across your social channels.
• Service with empathy, patience, and understanding. Gamers are real people, not just metrics.

By providing support as dedicated as the development team, you earn trust. Players become advocates who drive ongoing sales through referrals. They quickly forgive missteps because the relationship is valued. Make customer service not just a cost center, but a profit center, through earned loyalty.

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Indie Game Studio Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector

Do you want to start a game studio and need to write a plan? If YES, here is a sample indie game studio house business plan template & feasibility report.

If you are interested in the video games industry and you don’t have the capacity to attract and work with mainstream video games publishers, the good news is that you can still start a business in the industry. One of such businesses is to start an indie game studio.

Indie games are developed by individuals, small teams, or small independent companies that are often specifically formed for the development of one specific game. Typically, indie games are smaller than mainstream titles.

Although you might not make a lot of money like mainstream video games publishing companies, but trust me, with the advent of social networking sites, there are loads of opportunities for you to make good money from this line of business. Below is a sample indie game studio business plan template that will help you write yours within record time.

A Sample Indie Game Studio Business Plan Template

1. industry overview.

In the video game industry, an independent (indie) game refers to games created by individuals or smaller development teams (small teams of video game developers) without the significant financial support of a video game publisher or other outside source.

Indie games studio is grouped under the social network game development industry a sub industry under the video games industry. Companies in this industry develop video games played on a social network platforms, including websites such as Facebook and smartphone applications.

The games developed within this industry are free to play and do not require the user to own any software or console to participate. Companies earn revenue through the sale of virtual goods within a game as well as through advertisements.

Since its inception, the Social Network Game Development industry has grown rapidly. Revenue is anticipated to grow at an annualized rate of 16.7 percent to $3.9 billion over the five years to 2018. The surging adoption of the internet and the popularity of social networks, including social networking websites and mobile apps, have driven revenue growth during the period. Industry revenue is anticipated to rise 14.3 percent in 2018 alone.

The industry’s growth has been stimulated by the emergence of new markets that have embraced social gaming. Social networks and their accompanying technology have placed gaming within reach of the average computer or mobile phone user.

As a result, consumers who have not previously played video games are beginning to participate According to a report published by IBISWorld, the Video Games industry has experienced strong returns to spending on industry products during the latter half of the five-year period to 2018.

While the emergence of low-cost games for mobile devices has slowed demand for other games and may continue to temper growth opportunities in the foreseeable future, industry revenue has picked up amid stronger sales in games, downloadable content (DLC), consoles and their corresponding products.

Over the five years to 2018, industry revenue increased at an annualized rate of 7.2 percent. In 2018, revenue is expected to total $43.7 billion. This growth was assisted by growing consumer incomes and the releases of the revised Xbox One and PlayStation 4, as well as the Nintendo Switch, throughout the five-year period.

The Social Network Game Development Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries.

Statistics has it that in the united states of America alone, there are about 5,554 licensed and registered social network game development companies (indie games studios inclusive) responsible for employing about 12,593 employees and the industry rakes in a whooping sum of $4 billion annually with an annual growth rate projected at 16.7 percent between 2013 and 2018.

It is important to state that the companies holding the largest market share in the Social Network Game Development industry include Zynga Inc. and King Digital Entertainment PLC. The need to be creative with funding this business is key to the success of the business because indie games are smaller than mainstream video games.

Indie game developers are generally not financially backed by video game publishers, who are risk-averse and prefer “big-budget games”. Instead, indie game developers usually have smaller budgets, usually sourcing from personal funds or via crowdfunding.

2. Executive Summary

David Lance® Indie Game Studio, Inc. is a licensed indie game development studio that will be located in New Orleans – Louisiana. We have been able to secure a standard facility in a central and easy to locate area in New Orleans.

David Lance® Indie Game Studio, Inc. is going to be involved in the development of a wide genre of video games played on a social network platform, including websites such as Facebook and smartphone applications. The games developed are free to play and do not require the user to own any software or console to participate.

We conducted a thorough market research and feasibility studies and we were able to come to the conclusion that New Orleans – Louisiana is the right place to start our indie game development studio. Our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the industry.

Our workers are going to be selected from a pool of talented and highly creative game developers in and around New Orleans – Louisiana and also from any part of the world as the business grows. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading studios in the United States.

David Lance® Indie Game Studio, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. David Lance® Indie Game Studio, Inc. is a private business that is owned and managed by David Lance and other team members. David in has a Degree in Computer Engineering from the University of Illinois.

This Arlington, Virginia native originally attended college to become a video game developer and he has Advanced Professional Certificate in Animation, Graphic Design or Illustration, Certified Professional Animators, Toon Boom Certification and 3D Modeling, Art & Animation Certification.

3. Our Products and Services

David Lance® Indie Game Studio, Inc. is established with the aim of maximizing profits in the social network game development Industry.

We want to compete favorably with the leading indie game studios in the United States of America which is why we have put in place a competent quality assurance team that will ensure that all our games surpass our customers’ expectations and match-up with international best practices.

We will work hard to ensure that David Lance® Indie Game Studio, Inc. is not just accepted in New Orleans – Louisiana but also throughout the United States of America and the all over the world via the internet. These are the services and products that will be made available to our clients;

• Developing a wide genre of video games and social network games such as puzzle games, role-playing and gambling games et al
• Maintaining social network games
• Expanding existing social network games
• Contracting third-party advertisers to reach target demographics

4. Our Mission and Vision Statement

• Our Vision of starting David Lance® Indie Game Studio, Inc. is to build a world – class indie game studio that will operate with no creative restrictions.
• We will be known for innovation, creativity, and artistic experimentation.
• Our mission for establishing David Lance® Indie Game Studio, Inc. is to build a world class indie game studio that will be known to produce top-notch video games and to become the number one choice for social networking sites.
• We want to build an indie game studio that can favorably compete with other leading brands in the industry.

Our Business Structure

David Lance® Indie Game Studio, Inc. intends starting small in New Orleans – Louisiana, but hopes to grow big in order to compete favorably with leading indie game studios in the industry both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.

At David Lance® Indie Game Studio, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Creative Director
• Human Resources and Admin Manager
• Sales and Marketing Executive

Video Games Designers and Developers

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Creative Director:

• Serves as project manager of the organization; works directly with employees
• Responsible for designing and approving concepts for video games production for client
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications/journals; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and staff
• Ensures that the organization works in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for David Lance® Indie Game Studio, Inc.
• Serves as internal auditor for David Lance® Indie Game Studio, Inc.
• Designing the layout of the game
• Making edits based on feedback
• Writing code to turn the designer’s concepts into a playable game
• Programming the game’s terrain
• Programming artificial intelligence for non-player characters within the game
• Creating code, editing code, incorporating artwork into the game, enabling online access and creating game menus
• Balance and adjust gameplay experiences to ensure the critical and commercial success of the product.
• Solicit, obtain, and integrate feedback from design and technical staff into original game design.
• Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned by the human resources and admin manager.

6. SWOT Analysis

David Lance® Indie Game Studio, Inc. employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured indie games studio that can favorably compete in the Video Games Development industry in the United States.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for David Lance® Indie Game Studio, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of David Lance® Indie Game Studio, Inc.;

Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient animation artists, a team with excellent qualifications and experience in various niche areas in video games design and development.

Aside from the synergy that exists in our carefully selected workforce, we have some of the latest and efficient software apps and equipment and of course our work output and services will be guided by international best practices in the industry.

As a new indie game studio in New Orleans – Louisiana, it might take some time for our organization to break into the market and gain acceptance especially from high paying video games players in the already saturated Video games development industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

Video games players must have internet access to join social networks and play games. Increased broadband coverage translates to more potential industry customers and higher revenue. The number of broadband connections is also a good proxy for the number of households that join social networking websites.

A higher number of people connected to the internet drives increases in social network adoption. The number of broadband connections is expected to increase in 2018, representing a potential opportunity for the industry.

Leading into 2015, there was a concern that the rise of easy-to-use tools to create and distribute video games could lead to an oversupply of video games, this was termed the “indiepocalypse” which will likely pose a threat to us. With increase in the numbers of consumers that access social networks through their smartphones, game developers that optimize games for mobile devices can boost revenue by encouraging game use on the go.

An increased number of mobile internet connections facilitates this kind of use. The number of mobile internet connections is expected to rise over 2018, but it is quickly approaching saturation, which indicates a potential threat to the strong revenue growth of the past five years.

7. MARKET ANALYSIS

• Market Trends

If you conversant with happenings in this line of business, you will agree that the nature of indie game development had existed since the rise of the personal computer in the 1980s through shareware. Indie gaming saw a rise in mainstream popularity in the latter half of the 2000s, due to new online distribution methods and widely available game development tools.

The rise was also spurred on by several influential games released during the 2010s, such as Super Meat Boy, Fez, Braid, Minecraft, Undertale, and Cuphead. Indie development saw a resurgence in the early 2000s, principally driven by the availability of online distribution, allowing game developers to sell directly to players and bypassing limitations of retail distribution.

Software technologies used to drive the growth of the World Wide Web, like Adobe Flash, were available at low cost to developers, and provided another means for indie games to grow. The new interest in indie games led to middleware and game engine developers to offer their products at low or no cost, in addition to open source libraries and engines.

Dedicated software like GameMaker Studio and tools for unified game engines like Unity and Unreal Engine removed much of the programming barriers needed for a prospective indie developer to create these games.

Lastly, while direct online distribution helped indie games to reach players, the arrival of online digital game storefronts such as Steam and GOG.com further boosted awareness of indie games, as these storefronts allowed developers to publish, update, and advertise their games directly, and players to download the games anywhere.

8. Our Target Market

When it comes to indie games studio business, there are no exemption to who you can market your services to especially finished video games. Your video games can be marketed to a wide range of video game players especially via the internet.

In view of that, we have created strategies that will enable us reach out to a wide demography of video game players who we know will need our services. We have conducted our market research and survey and we will ensure that our indie game studio attracts of popular game players all across the globe via the internet.

Our Competitive Advantage

The competition in the video games development industry is getting stiffer by the day, you have to be highly creative and come up with creative games, concepts and good interface in order to survive in the industry. The video games development industry is indeed a profitable and at the same time a highly competitive industry.

We are quite aware that to be highly competitive in the video games development industry means that you are not only expected to be able to deliver consistent and highly creative video games, but you must be able to meet set targets.

Our Competitive Advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient video games designers and developers, a team with excellent qualifications and experience in various niche areas in the video games development industry.

Aside from the synergy that exists in our carefully selected workforce, we have some of the latest and efficient software and equipment and of course our work output and services will be guided by international best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

David Lance® Indie Game Studio, Inc. is established with the aim of maximizing profits in the video games development industry and we are going to do all it takes to meet and surpass the expectations of our clients. David Lance® Indie Game Studio, Inc. will generate income by offering the following services and products;

• To fund the game, we will rely on or start a crowd-funding campaign, finding a publisher, and building community support while in development
• Developing a wide genre of video games and social network games such as puzzle games, role-playing games and gambling games et al

10. Sales Forecast

One thing is certain, there would always be social networking sites who would want an indie game development studio to develop games and host on their platforms, and of course there would always be game lovers looking for creative video games to play.

We are well positioned to take on the available market in the video games development industry, and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our indie game studio to enviable heights.

We have been able to examine the indie games development market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for David Lance® Indie Game Studio, Inc., it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $400,000
• Third Fiscal Year (FY3): $750,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Video game distribution is shifting towards online marketing. For developers, online marketing is much more profitable and more readily available than retail marketing, although distribution portals have been criticized for collecting a large portion of game revenue.

Our sales and marketing team will be recruited based on their vast experience in the Video games development industry and they will be trained on a regular basis so as to be well equipped to meet their set targets.

Our goal is to grow David Lance® Indie Game Studio, Inc. to become one of the leading indie game studios in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in New Orleans – Louisiana but also in other cities in the United States of America.

David Lance® Indie Game Studio, Inc. is set to make use of the following marketing and sales strategies to attract clients and win animation videos contracts;

• Leverage on the internet to promote our video games
• Engage direct online marketing and internet digital distribution options of our games
• Encourage word of mouth marketing from loyal and satisfied people who have played our video games
• Market video games at various indie game trade shows, such as Independent Games Festival and IndieCade.
• Pitch our business at Indie Game Jam (IGJ) (Indie Game Jam (IGJ) is an annual event that allows indie game developers to experiment and present ideas without publisher restrictions).

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice in the whole of the New Orleans and beyond which is why we have made provisions for effective publicity and advertisement of our indie game studio.

Below are the platforms we intend to leverage on to promote and advertise David Lance® Indie Game Studio, Inc.;

• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our products and services
• Install our Billboards on strategic locations all around New Orleans – Louisiana
• Distribute our fliers and handbills in target areas
• List our indie game studio in local directories / yellow pages
• Advertise our indie game studio in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

At David Lance® Indie Game Studio, Inc. we will adopt the pricing system that is obtainable in the industry but we will ensure that we keep the prices of our video games a little below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our customers at regular intervals.

• Payment Options

The payment policy adopted by David Lance® Indie Game Studio, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that David Lance® Indie Game Studio, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check

In view of the above, we have chosen banking platforms that will enable our client make payment for video games and sponsorship without any stress on their part.

13. Startup Expenditure (Budget)

The cost of setting up an indie game development studio can be relatively expensive for new entrepreneur especially if you are all out to start a standard indie game studio. Aside from the money required to purchase the latest software, gadgets and production equipment, you would also need a huge cash base to be able to attract and pay professional video games designers and developers

Essentially, this are the area we are looking towards spending our start – up capital on;

• The Total Fee for incorporating the Business in the United States of America – $750.
• The budget for liability insurance, permits and license – $2,500
• The amount needed to acquire a suitable Office facility with enough space for standard indie game studio in a business district 6 months (Re – Construction of the studio facility inclusive) – $100,000.
• The cost for equipping the office (computers, laptops, projectors, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
• The cost of launching our official website – $600
• Budget for paying at least 5 employees for 2 months and utility bills – $50,000
• Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $10,000

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a medium scale but standard indie game studio in the United States of America.

Generating Funds/Startup Capital for David Lance® Indie Game Studio, Inc.

David Lance® Indie Game Studio, Inc. is a private business that will be owned by David Lance and some partners. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting David Lance® Indie Game Studio, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to develop highly creative and interesting video games and to offer sponsorship or our video games a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

David Lance® Indie Game Studio, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility plus renovation of the facility and construction of a standard indie game development studio: Completed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed computers, laptops and other video games development gadgets: Completed
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business : In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement : In Progress
• Establishing business relationship with vendors and key players in the industries: In Progress

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How to Start a Video Game Company

Back to All Business Ideas

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 4, 2022 Updated on March 13, 2024

Investment range

$6,550 - $12,100

Revenue potential

$60,000 - $290,000 p.a.

Time to build

3 – 6 months

Profit potential

$53,000 - $88,000 p.a.

Industry trend

The US is home to millions of gamers, blasting away everyday on top titles like Assassin’s Creed, Grand Theft Auto, Minecraft and Animal Crossing. Video games are booming and will soon be a $300 billion global industry. If you love gaming and have programming experience, you could start your own video game company, give gamers endless hours of fun and grab a sliver of that massive market. Who knows, you might even grow into the next Activision Blizzard or Epic Games. 

Getting there will take a lot of hard work and a good deal of business knowledge. This step-by-step guide can’t help you with the first part, but it does provide all the insight and information you’ll need to develop and launch your own successful video game company.

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Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a video game company has pros and cons to consider before deciding if it’s right for you. 

• Flexibility – Work from home, when you want
• Good Money – Video games have massive global appeal
• Fun! – Create inventive and enjoyable games
• Experience Required – Online courses are not enough to start a company
• Saturated  Market – Market is full of video game firms

Video game industry trends

Industry size and growth.

• Industry size and past growth – The US video game industry is worth $95.4 billion and has seen strong 13% annual growth for five years.(( https://www.ibisworld.com/industry-statistics/market-size/video-games-united-states/ )) 
• Growth forecast – The global video game market is projected to expand an impressive 80% by 2027, reaching $315 billion.(( https://www.mordorintelligence.com/industry-reports/global-gaming-market )) 
• Number of businesses – In 2022, more than 55,000 video game companies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/video-games-united-states/ ))
• Number of people employed – In 2022, the video games industry employed 298,077 people in the US.(( https://www.ibisworld.com/industry-statistics/employment/video-games-united-states/ ))

Trends and challenges

Trends in the video games industry include:

• Cloud gaming and streaming are growing fast, and most games today are downloaded or accessed online rather than distributed in physical form . About half of games are “PC games” instead of “console games”, but even Nintendo Switch games are downloaded rather than physically purchased. 
• Steam, a platform to play games online, is another new and popular option for gamers who are moving away from console gaming.
• Mobile gaming has exploded in recent years, accounting for about half of all gaming revenue in 2020. 

Challenges in the video games industry include:

• Fears about the impact violent games have on children persist. There have been many studies on the topic with mixed results, and other studies have shown that gaming leads to isolation and poor academic performance. 
• With over a million games already in existence, coming up with brilliant new game ideas gets more difficult every day. 

Demand hotspots

• Most popular states – The most popular states for game developers are Oregon, Washington, and Massachusetts.(( https://www.zippia.com/game-developer-jobs/best-states/#texas ))
• Least popular states – The least popular states for game developers are Oklahoma, Hawaii, and Iowa.

What kind of people work in Video Games?

• Gender – 24% of video game developers are female, while 76% are male.(( https://www.zippia.com/video-game-developer-jobs/demographics/ ))
• Average level of education – The average video game developer has a bachelor’s degree.
• Average age – The average video game developer in the US is 43.2 years old.

How much does it cost to start a video game business?

Startup costs for a video game company range from $6,500 to about $12,000. Costs include a high-powered computer and game development software.

You can earn a bachelor’s degree in game development online from schools like Southern New Hampshire University . Of course, that will take several years and cost thousands of dollars. You can also take inexpensive courses on sites like Udemy and Coursera. Most courses cost less than $50 and often are self study. You could probably take several courses for a few hundred dollars and finish in less than six months. 

If you want to protect the intellectual property of your games by getting a patent, each patent will cost you about $25,000.

How much can you earn from a video game business?

The average price of a video game is about $50, and the profit margin on actual physically purchased games is about 40%. If you create games to be digitally downloaded, your profit margin will be 90%.

You might, however, want to consider starting with an online game costing about $4, with a profit margin of 90%. Your only costs to develop the game are your time after the cost of the software that you purchase. 

In your first year or two, you could work from home and have 40 players a day, bringing in nearly $60,000 in annual revenue. This would mean almost $53,000 in profit, assuming that 90% margin. As your brand gains recognition, you could build more games and have 200 players a day. At this stage, you’d probably rent out an office and hire staff, including game designers, reducing your profit margin to 30%. Still, with annual revenue of more than $290,000, you’d make a tidy profit of $88,000.

What barriers to entry are there?

There are a few barriers to entry for a video game company. Your biggest challenges will be:

• Extensive skills are required to make video games
• Finding the best game development software

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Step 2: hone your idea.

Now that you know what’s involved in starting a video game company, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research video game companies online to examine their products, price points, and customer reviews, as well as what sells best. You’re looking for a market gap to fill. For instance, maybe the market is missing a video game company that targets women.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as sports video games, mobile games, or puzzle games.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your products or services

You may want to start by offering a free game, or at least a game with a free trial. You also need to decide the format of the games you want to develop – PC, mobile, or downloadable to a console. You also need to decide what genre of games to develop – sports, action, zombie games. The options are endless.

How much should you charge for video games?

The average price of an online video game is $3 to $4. You should aim for a profit margin of about 90%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be gamers of all ages. You can find younger game players on TikTok and Instagram, and older gamers on Facebook. But the best way to reach out to gamers is probably on online discussion platforms like Steam’s discussion board.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Video Game Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “video games” or “games”, boosts SEO
• Name should allow for expansion, for ex: “Arcadia Entertainment” over “eSports Interactive Games”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. 

Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Video Game Company Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Present a concise overview of your video game company, emphasizing its focus on developing engaging, innovative games for various platforms.
• Business Overview: Describe your company’s specialization in video game development, including genres, platforms (like PC, consoles, or mobile), and player experiences.
• Product and Services: Detail the types of games you plan to develop, such as action, strategy, or educational games, and additional services like game updates or community management.
• Market Analysis: Assess the current video game market, identifying trends, target demographics, and consumer preferences in gaming.
• Competitive Analysis: Compare your games and development approach to other gaming companies, focusing on what sets your games apart, like unique gameplay mechanics, storylines, or graphics.
• Sales and Marketing: Outline your strategy for marketing and selling your games, including digital distribution channels, partnerships with publishers, or participation in gaming conventions.
• Management Team: Highlight the qualifications and experience of your team, especially in game development, design, and project management.
• Operations Plan: Describe the game development process, from concept and design to coding, testing, and release.
• Financial Plan: Provide an overview of financial aspects, including development costs, revenue models (like sales or subscriptions), and funding strategies.
• Appendix: Include supplementary documents such as game design documents, market research data, or partnership agreements to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to video game companies.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your video game company will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a video game business. You might also try crowdfunding if you have an innovative concept. At some point, if your company is poised for high growth, you may be able to attract venture capital or angel investors.

Step 8: Apply for Video Game Company Licenses and Permits

Starting a video game business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your video game business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use game development software, such as Unreal Engine , BuildBox , or GameMaker Studio , to develop your games.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Engage Influencers: Leverage the power of social media influencers to showcase your game. Collaborate with gaming influencers and streamers to create buzz, generate excitement, and reach a wider audience.
• Interactive Demos and Beta Testing: Offer interactive demos and beta testing opportunities to build anticipation and gather feedback. This not only involves the gaming community but also creates a sense of exclusivity and involvement.
• Strategic Partnerships: Form partnerships with other businesses in the gaming industry, such as hardware manufacturers, gaming accessory companies, or even esports organizations. Cross-promotions can significantly broaden your game’s reach.
• Community Building: Foster a strong online community around your game. Utilize forums, social media groups, and Discord channels to connect players, share updates, and create a loyal fan base that becomes your game’s advocate.
• Storytelling and Content Creation: Craft compelling stories around your game and its development. Share behind-the-scenes content, developer diaries, and engaging narratives to create a deeper connection with your audience.
• Participate in Gaming Events: Attend and showcase your game at gaming conventions, conferences, and events. This provides an excellent platform to interact with potential players, receive real-time feedback, and create a memorable presence.
• Targeted Advertising: Use targeted advertising on platforms like Google Ads and social media to reach specific demographics interested in your game genre. Tailor your ad content to highlight unique features and gameplay experiences.
• In-Game Events and Challenges: Create in-game events and challenges to keep players engaged. Encourage user-generated content, share highlights on social media, and reward participants to enhance community involvement.
• Localized Marketing: Tailor your marketing efforts to specific regions and cultural preferences. Localized campaigns, translations, and understanding regional gaming trends can make your game more appealing to diverse audiences.
• Leverage User Reviews: Encourage players to leave reviews and testimonials. Positive user reviews act as powerful endorsements, influencing potential players and building trust in the gaming community.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your video game company meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your video game business could be:

• Our sports games will make you the MVP
• You’ve never seen game graphics like this 
• The best games for gamer girls! 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a video game business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in video games for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in video games. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a video game business include:

• Designers – video game design
• Developers – develop the game technology
• General Manager – staff management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Video Game Company – Start Making Money!

Video games are exploding, so if you’re a gamer with some programming experience, now is the perfect time to open your own game shop and ride the wave. You could start from home, launch with a free game, and build some buzz before going big. 

Now that you know what to do, it’s time to start designing games and begin your entrepreneurial journey to success!

• Video Game Business FAQs

Video games can be incredibly profitable, but the key is creating a hit game that stands out from the crowd and goes viral.

Traditional physical games cost $50 to $60. If you create online games, prices range from $3 to $4.

Starting a video game company can be challenging due to the highly competitive and rapidly evolving nature of the industry. It requires a significant investment in resources, including talent, technology, and funding, and a clear understanding of the market demand and trends.

Yes, it is possible to publish a game without a company, especially with the advent of digital distribution platforms such as Steam, App Store, or Google Play. However, forming a company can provide benefits such as liability protection, access to funding and resources, and the ability to establish a brand identity and reputation.

The duration of video game copyright varies depending on the country and the type of copyright protection. In the United States, video games are typically protected by copyright for 70 years after the death of the author or the last surviving author in the case of multiple creators.

The process of designing and developing a video game can involve several stages, including concept ideation, prototyping, pre-production, production, testing, and release. It typically involves a multidisciplinary team of professionals, such as game designers, programmers, artists, musicians, writers, and testers, who collaborate to create a compelling and engaging gaming experience.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Video Game Company Name
• Create a Video Game Company Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Video Game Company Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Video Game Company - Start Making Money!

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Start a Video Game Company

Unleashing Your Inner Creator: Building Immersive Worlds in a Video Game Company

VIDEO GAME COMPANY

Related business ideas, discover your perfect domain, video game mini business plan, business idea: video game company, expected percent margin:, earnings expectations:, actions to hit those numbers:, game development:, marketing and customer acquisition:, sales and monetization:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a video game company is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: naming the business, researching the name, registering the name, finalizing the name, step 3: establishing a business structure, registering the business, obtaining licenses and permits, establishing a bank account, step 4: obtaining licenses and permits, applying for licenses and permits, paying for licenses and permits, receiving licenses and permits, step 5: creating a business plan, outlining goals and objectives, establishing a budget, step 6: securing funding, preparing a pitch, negotiating terms, step 7: setting up the office, choosing the right location, purchasing necessary equipment, step 8: hiring employees, establishing a team, setting up a workplace, establishing a salary structure, step 9: marketing the business, leveraging social media, advertising, public relations, analyzing results, explore more categories, take the next steps.

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Video Game Business Plan Sample

DEC.05, 2014

Introduction

Starting and running a video game company smoothly is not everyone’s cup of tea. Gaming is a multi-billion dollar business in the US alone. Video games seem to be the products made only for children. In reality, most of the video games are developed by considering the needs of adult gamers. According to the data provided by the Entertainment Software Association, around 81% people from 18 to 29 years of age play video games. Therefore, it is vital to prepare a well-written gaming business plan to lure investors .

Frequently asked questions of game company business plan

To draft a video game development business plan , you need to consider the following questions –

• Do you have proper financial planning?
• What business model you have to sell your game software, i.e. DVD, downloadable software, mobile gaming, distributor etc.?
• Who are in your competition, like resellers, local game store, etc?
• Do you have brick-and-mortar enterprise, online business, or both?
• What are the production resources you have to meet market demand?

Executive Summary

You may have definitely heard the popular saying, “The first impression is the last impression.” Therefore, the executive summary of your  video games business plan  is the first impression towards your investors. It serves as an overview of your plan as a whole. Be sure to limit your executive summary to one page only and also explain your products, your target players, and why you want to sell your product.

Company Overview

It is where most startups make mistake. A poorly written punch line can severely weaken the insight of your company. Therefore, you should answer the following strongly in your mission statement –

• What do you do?
• How do you do your business?
• What value do you provide?
• Whom do you serve to?

In your  video game startup business plan , you will also need to discuss your staff, what they do, and your company’s legal structure like a corporation, LLC, or partnership firm.

Market Research

Market research is not a child’s play in gaming. You might have been running the game company most efficiently in the world, but your efforts are worthless if your users do not understand what your game is. In your  business plan for a video game company , explain the type of your game like RPG, shooter, multiplayer, adventure, etc. Find out the games like yours. Find out what kind of players would like your game (and even buy). Here, you need to dig deeper.

In this section of your  video game developer business plan , you need to discuss what you want to sell, projected life/life cycle of the product, how you want to distribute, price it and who wants to buy it. Give a detailed overview of your game product, while being straight to the point. It will help you attract investors.

Marketing plan

Well, it is the most complex part of the game development business plan . You should split it into three parts – communication, growth strategy, and prospects.

Growth strategy includes how you want to grow your business. You might be making more products for your target audience. There are certain ways in your mind to beat your competition.

Explain how you will talk to your target players through communication. You should present a specific plan and explain where your players are, how you will get on board, and how your software is appealing to them.

In prospects, you will need to explain opportunities, which could play a vital role in your marketing. Are you doing something unique? Is it something talked about but has never been done before?

Financial Projections

Typically, standard financial plans show income statements or balance sheets. Well, not every game developer knows how to interpret or create financial statements. You may have conducted research on how similar games are developed. It is also vital to add in capitalization table, which shows the amount of equity owned by the founders.

In your  video game business plan sample , also explain the budget you need to allow to your marketing. You need to do proper research in this aspect because marketing is the hardest part of game development. The marketing budget is necessary for your game development business plan or it will seem a huge red flag.

How to order writing business plan game company?

If you are looking for the best  video game business plan template , OGS Capital is the best choice. We have experienced business consultants and network with investors to turn your business idea into reality.

Download Video Game Business Plan Sample in pdf

Professional OGS capital writers specialized also in themes such as online shopping site business plan , cyber security business ideas , business plans for graphic design , internet radio business plan , online dating business plan , business plan for a video game company and many others.

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How to Start a Profitable Game Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a game business plan., 3. develop a game brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for game., 6. open a business bank account and secure funding as needed., 7. set pricing for game services., 8. acquire game equipment and supplies., 9. obtain business insurance for game, if required., 10. begin marketing your game services., 11. expand your game business..

Starting a game business requires a keen understanding of the current market landscape. Performing a detailed market analysis is crucial for identifying your target audience, understanding industry trends, and scoping out the competition. Here are some pivotal steps to guide you through your market analysis:

• Analyze the demographics of potential customers, including age, gender, gaming preferences, and spending habits.
• Research current gaming trends, such as popular genres, platforms, and emerging technologies like VR and AR.
• Evaluate the competitive landscape by identifying key players, their market share, and the strategies they employ.
• Investigate the market size and growth potential for the type of games you intend to develop.
• Look into the legal and regulatory environment of the gaming industry to ensure compliance and anticipate potential barriers.
• Assess the distribution channels for games, such as digital storefronts, app stores, or physical retailers, and their respective market penetration.
• Gather and analyze consumer feedback on existing games to pinpoint unmet needs or dissatisfaction that your business could address.

Are game businesses profitable?

Yes, game businesses can be very profitable. Many game companies have successful, profitable business models and have proven to be a lucrative industry. There are a variety of ways in which game companies can make money, including through the sale of the games themselves and through microtransactions or in-game items. Additionally, some companies offer their games for free and generate revenue through advertising or additional services.

Embarking on the journey of starting a game business requires a solid blueprint for success. Drafting a comprehensive business plan is imperative as it outlines your vision, strategies, and the actionable steps to make your gaming venture a reality. Here's a concise guide to assist you in creating a robust game business plan:

• Define your game's unique value proposition and target market to identify the niche your business will serve.
• Assess the market by researching competitors, understanding industry trends, and determining market size and potential growth.
• Develop a monetization strategy, whether it's through direct sales, in-app purchases, subscriptions, or advertising.
• Create a marketing and sales plan, detailing how you'll promote your game and attract users.
• Outline your development plan, including timelines, milestones, and the technology stack that will be used for game creation.
• Calculate financial projections, including startup costs, operating expenses, revenue forecasts, and break-even analysis.
• Identify your team and any additional talent needed, highlighting their roles, expertise, and how they'll contribute to the success of the business.
• Consider potential risks and obstacles, and how you'll mitigate them, to prepare for challenges ahead.

How does a game business make money?

One way that a game business can make money is through selling digital downloads, in-game currency or merchandise related to the game. For example, many mobile game businesses also offer monthly subscription plans and microtransactions. A game business can also make money by targeting advertisements to the right audience. For example, a 11 Steps To Starting a Successful Spice Business would likely target entrepreneurs who are interested in launching their own food business. Additionally, companies may be willing to pay for sponsorship or product placement deals within the game, providing another source of revenue for the business.

Creating a compelling game brand is crucial for standing out in the competitive gaming industry. It involves establishing a unique identity that resonates with your target audience and differentiates your offerings from competitors. Here are some key steps to consider:

• Define Your Brand Essence: Determine the core values, mission, and personality of your brand that will appeal to your target players.
• Identify Your Unique Selling Proposition (USP): Pinpoint what makes your games unique and why players should choose them over others.
• Create a Memorable Brand Name and Logo: Develop a name and visual identity that are easily recognizable and reflect your brand's essence.
• Establish a Consistent Visual and Narrative Style: Ensure your games, website, and promotional materials consistently reflect your brand's aesthetic and tone.
• Craft a Catchy Tagline: Create a succinct and memorable tagline that encapsulates the feel and promise of your brand.
• Engage with Your Community: Build and maintain a relationship with your audience through social media, forums, and events to foster brand loyalty.

How to come up with a name for your game business?

When it comes to choosing a name for your game business, the possibilities are endless! It's important to ensure that your name accurately reflects the type of business you are running, is easy to pronounce, and is memorable. Start by brainstorming ideas. Think about what types of games you offer, relevant adjectives that describe your company, and any unique elements that define your brand. Consider combining words to create a unique name that is both creative and eye-catching. Once you've narrowed down the possibilities, take advantage of online resources to check the availability of domain names and make sure no one else is using the same name. With a little creativity and proper research, you'll have a memorable name for your game business in no time!

To establish a solid foundation for your game business, formalizing your business registration is a crucial step. This legal process gives your venture legitimacy and protects your personal assets. Follow these key points to ensure your registration is completed correctly:

• Choose a business structure (e.g., sole proprietorship, LLC, corporation) that best suits your needs and offers the right balance of legal protection and tax considerations.
• Register your business name with the appropriate state agency, ensuring it's unique and not already in use. This could be your Secretary of State or a similar entity.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, even if you don't plan to have employees immediately.
• Apply for any necessary business licenses and permits, which can vary depending on your location and the type of games you intend to produce or sell.
• Be aware of your local zoning laws to ensure that your business operations comply with municipal regulations.
• Consider the benefits of trademarking your game titles or company logo to protect your brand identity.
• Keep records of all your registration documents and make note of any renewal dates to maintain your business's legal status.

Resources to help get you started:

Explore key resources specially curated for game entrepreneurs to navigate market trends, operational strategies, and business growth insights:

• Gamasutra: Offers in-depth articles, analysis, and insights on the video game industry's business and design aspects. https://www.gamasutra.com
• Newzoo: Known for its comprehensive global games market reports, providing detailed analytics on gaming trends, audiences, and revenue forecasts. https://newzoo.com
• Pocket Gamer.biz: Focuses on the mobile gaming sector, featuring news, insights, and discussion on market trends and strategies. https://www.pocketgamer.biz
• The Game Developers Conference (GDC) Vault: An invaluable repository of talks, presentations, and workshops from industry experts on game development, production, and business. https://www.gdcvault.com
• IGDA - International Game Developers Association: Offers resources, support networks, and advocacy for individuals and businesses within the game industry. https://www.igda.org
• GamesIndustry.biz: Delivers daily news, insight, and analysis on the global video gaming industry, with a strong focus on business and development. https://www.gamesindustry.biz

Starting a game business involves more than just creating a game; it requires adherence to legal requirements to operate within the industry. To ensure your business is compliant and legitimate, acquiring the necessary licenses and permits is crucial. Here are some steps to guide you through this process:

• Research local and national regulations: Look into the specific gaming laws in your area, as licensing requirements can vary greatly from one region to another.
• Business license: Apply for a general business license, as it's a fundamental permit needed to legally operate any business.
• Age rating certification: Submit your game for age rating through organizations like the ESRB in North America or PEGI in Europe to ensure your game is appropriately marketed.
• Developer and publisher licenses: If you're developing for consoles, obtain licenses from console manufacturers such as Sony, Microsoft, or Nintendo.
• Trademark your game: Protect your game's name, logo, and other unique elements by registering them as trademarks.
• Export licenses: If you plan to sell your game internationally, you may need an export license, especially if your game includes encryption.

What licenses and permits are needed to run a game business?

It depends on the type of game business you are running. For example, if you are running an online video game business, you may need a license from the software manufacturer, as well as an applicable permit from your state or local government. Additionally, if you are selling products related to video games, such as merchandise or in-game items, you will likely need a business license and sales tax permit. If your business involves physical gaming activities such as arcades or tournaments, you may need additional permits and licenses specific to your location.

Starting a game business requires careful financial planning and management. An essential part of this process is to open a dedicated business bank account to keep your company's finances in order. Additionally, securing funding can propel your business forward, allowing you to cover development costs, marketing, and other expenses.

• Research banks and financial institutions that offer business banking services with benefits such as low fees, good customer service, and online banking capabilities.
• Prepare the necessary documentation, which typically includes your business registration papers, EIN (Employer Identification Number), and personal identification.
• Compare different account types and choose one that aligns with your business needs, whether it's a checking account, savings account, or a merchant services account.
• Understand the funding requirements of your game business, which may include development tools, licensing fees, marketing, and operational costs.
• Explore funding options like business loans, grants, crowdfunding platforms, angel investors, or venture capital, depending on the scale of your business and the amount of money you need.
• Create a solid business plan to present to potential investors or financial institutions, outlining your game's concept, market analysis, and revenue projections.

When setting pricing for game services, it is essential to balance profitability with customer satisfaction. Carefully consider the perceived value of your services and how they stack up against the competition. Here are some guidelines to help you determine appropriate pricing:

• Cost-Plus Pricing : Calculate the total cost of providing your service, then add a markup percentage to ensure profitability.
• Competitive Analysis : Research what your competitors charge and position your pricing accordingly, taking into account the unique features of your service.
• Value-Based Pricing : Set prices based on the perceived value to the customer, which may allow for higher price points if your services offer unique benefits.
• Dynamic Pricing : Consider using dynamic pricing models that adjust based on demand, time of day, or special promotions to maximize revenue.
• Freemium Models : Offer basic services for free while charging for premium features or enhancements to attract a broad user base and monetize engaged users.
• Customer Feedback : Gather feedback from early users to understand their willingness to pay and adjust your pricing strategy accordingly.

What does it cost to start a game business?

Initiating a game business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $300000 for launching such an business. Please note, not all of these costs may be necessary to start up your game business.

Launching a game business requires careful selection of equipment and supplies to ensure a smooth operation and an exceptional customer experience. From the latest gaming consoles to high-quality gaming accessories, every item you choose should resonate with the needs of your target audience. Here's a guide to assist you in acquiring the necessary equipment and supplies:

• Identify Your Gaming Platform: Decide whether you will focus on PC gaming, consoles, or a mix of both, and purchase the appropriate hardware.
• Invest in High-Quality Accessories: Acquire durable controllers, headsets, mice, keyboards, and other peripherals that can withstand frequent use.
• Consider Comfort: Buy comfortable furniture for your customers, like gaming chairs and desks, to enhance their gaming experience.
• Software Licenses: Ensure you have the necessary licenses for the games and any software needed for running your business.
• Maintenance Tools: Have a set of tools and cleaning supplies on hand to maintain and clean your equipment regularly.
• Bulk Purchases: Look for bulk purchase options or wholesale prices to save on costs for items that are frequently replaced, such as cables or disposable accessories.
• Networking Gear: Invest in reliable networking equipment with fast internet speeds to support online gaming without lags.

List of software, tools and supplies needed to start a game business:

• Computer Equipment: A laptop or desktop computer with a powerful processor, high-end graphics card, and lots of RAM for heavy multitasking. Price range: $1000-$3000.
• Game Development Software: A software like Unity 3D or Unreal Engine 4 with additional software such as Adobe Photoshop and Audacity. Price range: $100-$600.
• Game Art Assets: A library of images, music, and sound effects. Price range: $50-$300.
• Voice Over Artist: Someone to record dialogue, narration, and sound effects. Price range: $50/per hour.
• Web Hosting Account: A reliable web hosting account with ample storage space for game uploads. Price range: $10-$30/month.
• Marketing Tools: Facebook Ads Manager and Google Adwords for promotions and analytics. Price range: free to several hundred/month.
• Payment Processing Service Account: An account with a payment processing service to accept payments on your website. Price range - depends on the processor.
• Customer Support System Account: An account with a customer service system to help manage customer inquiries. Price range - depends on the system used.
• Legal Advice Through An Attorney or Law Firm: When starting a business you'll need legal advice and assistance when needed.Price range – varies depending on services needed.
• Testing Equipment (optional): An assortment of gaming controllers, joysticks, headsets and other gaming related hardware can be useful for testing the game during development.Price range – varies depending on product chosen."

Starting a game business is an exciting venture but it's important to protect your investment. Adequate business insurance can shield you from unexpected events that could otherwise jeopardize your operation. Below are some key considerations for obtaining the right business insurance for your game business:

• Identify the types of risks your game business faces, such as intellectual property infringement, cyber attacks, or customer lawsuits.
• Research different insurance providers to compare coverage options and premiums. Look for companies that specialize in entertainment or technology sectors.
• Consider general liability insurance to cover injuries or property damage related to your business activities.
• Investigate professional liability insurance if you're offering consulting or design services within the gaming industry.
• Protect your intellectual property and digital assets with a policy that covers copyright infringement or data breaches.
• Assess the need for property insurance if you own a physical location or hold valuable equipment.
• Consult with an insurance agent or a legal advisor who understands the gaming industry to ensure you get comprehensive coverage.
• Keep in mind that insurance requirements may vary by location, so check your local laws and regulations.

Now that you've set up your gaming services, it's time to attract players and build a community around your brand. Effective marketing is crucial to stand out in the competitive gaming industry. Here are some strategies to get the word out and draw in your target audience:

• Utilize Social Media: Create engaging content on platforms like Twitter, Instagram, and Facebook to connect with gamers. Use hashtags, join conversations, and share updates about your services.
• Content Marketing: Start a blog or a YouTube channel to provide valuable content such as game tutorials, industry news, and behind-the-scenes looks at your services.
• Community Engagement: Engage with online gaming communities on forums like Reddit or Discord. Offer exclusive deals or beta testing opportunities to members to generate buzz.
• Influencer Partnerships: Partner with gaming influencers who can showcase your services to their followers. Choose influencers whose audience aligns with your target market.
• Online Advertising: Invest in online ads using Google AdWords, Facebook ads, or other advertising platforms to reach potential customers based on their interests and browsing habits.
• Email Marketing: Collect emails through your website and send out newsletters with updates, promotions, and personalized offers to keep your audience engaged.

Expanding your game business is a critical phase that requires careful planning and execution to stay competitive in the dynamic gaming industry. Consider these strategic steps to ensure you're growing your business effectively and sustainably.

• Explore New Markets: Research and target new demographics or regions that have potential for growth. Localization of your games can also help tap into international markets.
• Enhance Game Portfolio: Regularly release new games or updates to keep your audience engaged. Consider diversifying game genres to appeal to a broader player base.
• Monetization Strategies: Experiment with various monetization models such as in-app purchases, subscriptions, and ad integrations to maximize revenue.
• Partnerships and Collaborations: Form strategic partnerships with other game developers, publishers, or digital platforms to co-create content or cross-promote games.
• Community Building: Invest in community management and social media to build a loyal fanbase that can provide valuable feedback and word-of-mouth promotion.
• Technology and Innovation: Stay ahead of the curve by investing in emerging technologies like AR/VR, AI, and blockchain to create unique gaming experiences.
• Marketing and Promotion: Strengthen your marketing efforts with targeted campaigns, influencer collaborations, and presence at gaming conventions and events.

How to Launch a Successful Video Game Business

By henry sheykin, resources on video game company.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Introduction

The video game industry has exploded in recent years, with the global market projected to exceed $135 billion by 2021. The industry’s growth and the expansive opportunities for creative expression have resulted in the influx of many new video game companies. Starting a video game business can seem daunting but with the right preparation and resources, it is possible to build a successful, profitable venture.

This article provides a comprehensive 12-step checklist for launching a successful video game company business. It covers the important considerations for each phase of the process, from creating a business plan and drafting a financial model to launching the product and competing in the market. With this information, aspiring entrepreneurs will gain the knowledge and skills needed to launch their own video game business.

Establish The Mission And Vision Of The Company

The mission and vision of a company serves to define its purpose and direction. It is important to determine what kind of video game company you want to be, and the direction it should take. The vision and mission should outline your company’s values, its short-term and long-term objectives, the type of products and services you offer, the audience you are targeting, and your overall goals in the industry. Here are some tips to help you create a concise mission and vision statement for your video game company:

• Identify your audience: The video game industry is highly competitive, and it’s important to identify who you are targeting with your company’s products. Think about the age groups, genders, and other elements that define your target demographic.
• What is the purpose? It’s important to establish why you have created the company and what value it brings to the industry. The purpose of the company should be clearly outlined in the mission statement.
• Realistic goals: When setting the long-term goals of the company, make sure to set realistic and achievable objectives. Aiming too high can be discouraging, and it can also lead to failure to reach the desired goals.

Creating the mission and vision of the company is a process that takes time and effort. Working with a business consultant or mentor can help you explore different ideas and create a cohesive and comprehensive plan for your video game company.

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Develop A Comprehensive Business Plan

Developing a comprehensive business plan is a must for any successful business, including a video game company. A successful business plan, however, should include not just the long-term strategies but also short-term goals. An effective business plan should be a dynamic document that can be adjusted to the changing market conditions and customer needs.

Here are some tips for getting started on the development of a comprehensive business plan for your video game company:

• Study the existing video games market. Evaluate the target audience, top selling video games, customer preferences and trends in the market. Ranking charts of the current games and genre analysis can be useful in this step.
• Set realistic and measurable goals and objectives. Prioritize those goals and develop a timeline for each of the objectives in the plan.
• Develop a comprehensive marketing plan that outlines the strategies and tactics that the company will use to reach its goals. This plan should include the details of the marketing mix- product, price, promotion and place.
• Evaluate the current competition and anticipate the trends in the market to create differentiated products. Identify the competitor's weaknesses and capitalize on them.
• Research the financial resources that the company will need to succeed. Estimate the development costs, operational costs, personnel costs, and marketing and promotion budgets.
• Organize the team of professionals who will have the skills and expertise to execute the business plan. Outline the job responsibilities, team structure and team dynamics.
• Create a plan to monitor the performance of the company and measure its profits. This will include a system of KPIs and metrics to track the progress.

Creating a comprehensive business plan is a critical step to launching a successful video game company. One should dedicate enough time and effort to analyzing the market and competitor trends and developing the necessary strategies to achieve the desired goals.

Draft A Viable Financial Model

Drafting a viable financial model is a critical part of starting a video game company business. It involves estimating the costs associated with launching and operating the business, forecasting future revenues, and assessing potential sources of funding. Here are some tips and tricks to help you draft a financial plan:

• Research the market – it is important to have an understanding of the industry dynamics, market trends, and the competitive landscape when creating a financial model.
• Estimate start-up costs and ongoing expenses – understanding the costs associated with running a video game company business and staying in business is essential.
• Analyze expected revenues and profitability – it is important to understand the potential sources of income and forecast the revenues.
• Research potential funding sources – review different funding sources available and assess the associated risks and potential opportunities.
• Draft different financial scenarios – it is important to create multiple scenarios that consider different variables such as currency exchange, interest rates, and inflation.
• Review financial model with the experts – there are several experts who could review the financial model for accuracy and suggest improvements.

Identify the Types Of Funding Sources And Investors

Raising capital for a video game company is a critical step that can break or make the business's success rate. Various companies can offer the necessary funds to get your video game company off the ground. Knowing the type of funding you need, and which sources offer the best options, will enable you to choose which options are best for you.

Here are some popular funding sources and investors in the video game industry that you should be aware of:

• Venture Capitalists/Angel Investors: These are private investors who provide capital in exchange for equity in the company. They typically invest in growth oriented companies that have a high potential for returns.
• Bank Loans: Banks are a source of financial support for businesses, often providing loans with low interest rates and more lenient terms. The downside of this option is that banks often require a lot of paperwork and collateral.
• Grants: Government agencies, non-profit organizations, and other entities provide grants to businesses to fund research and development projects or other types of initiatives. Grants are typically not an option for startups as they often require extensive experience and credentials.
• Crowdfunding: Platforms such as Kickstarter have made it easier for entrepreneurs to attract private investors by allowing them to launch campaigns that can quickly raise money from a large number of people. Crowdfunding is a viable option for entrepreneurs looking to launch their business on a budget.
• Incubators and Accelerators: These are programs offered by venture capital firms, universities, or other organizations to help startups with guidance, resources, and mentorship. Incubators and accelerators can be an invaluable source of funding, advice, and support for entrepreneurs.

Finding the right sources of funding and investors for your video game company can be a challenge. It's important to carefully research all available options and thoroughly understand their requirements, benefits, and potential downsides before making a decision. It is also recommended to consult with a professional financial advisor, who can help guide you through the process.

Register The Company And Obtain Necessary Permits And Licenses

Registering a company and obtaining all necessary permits and licenses is the first step to officially launching a video game company. It is essential for the company to remain in compliance with all relevant laws and regulations. Here are some tips and tricks for making sure that the company is properly registered and licensed :

• Understand all relevant rules, regulations, and laws before registering or licensing the company. There may be different requirements depending on the jurisdiction.
• Research the most suitable type of business entity and register it with the appropriate authority. This typically involves filing the articles of incorporation or a business registration form, and paying the required fee.
• Engage the services of experienced legal counsel to help with the registration process. A lawyer can help with choosing the right type of entity and navigating all the paperwork.
• Verify with the relevant licensing authorities about which permits and licenses are necessary for a video game company. This includes software and hardware licensing, intellectual property rights, copyright, and more.
• Fill out the permit and license applications, submit them to the relevant authority, and pay the required fees. This may involve demonstrating that the company meets specific regulatory requirements.
• Check regularly to ensure that all permits and licenses are up-to-date and in good standing. This is especially important if the company is in a rapidly changing industry.
• Ensure the company is in compliance with all relevant safety and environmental regulations. This includes health, fire safety, and building codes.

Design A Marketing And Promotional Strategy For Launching The Company

Developing a marketing and promotional strategy prior to launching a company is paramount for ensuring a successful launch. The following are some tips and tricks for designing a marketing and promotional strategy:

• Define the Target Market: Identifying the target customers is an important first step in the marketing and promotional process because it can help to determine which strategies should be employed. For example, if the target customer is predominantly millennials, then mobile-friendly marketing campaigns should be emphasised.
• Choose the Right Platforms: After a target market has been defined, choose the right platforms in order to distribute content. Utilizing the right social networks, such as Instagram, Twitter and Reddit, can help to ensure that the right people see the product and launch. Additionally, utilising influencers in the target market can help to spread the word and boost brand awareness.
• Develop Compelling Content: It is important to create high-quality, engaging content that will draw customers’ attention and make them eager to try the product. Combining visuals, such as graphics or videos, with an interesting story can help to convey the product message more effectively.
• Analyse and Improve: Companies should constantly analyse the effectiveness of their strategies and adjust their strategies accordingly. Utilising data from web analytics, user feedback and competitor analysis can help to determine what tactics are working and what need to be improved.

Construct The Product Development Team

One of the most important steps in launching a successful video game company is to build an effective product development team . This team is the key to planning and executing the ideas that will eventually become your video game. Here are some tips and tricks for constructing the best possible product development team:

• Understand What You Need: The best way to create an effective team is to understand what skills and roles are necessary to fulfill the mission of your video game company. Consider both the short-term and long-term roles that the team may need to fill. Don’t just think about technical skills, such as coding or animating, but also think about how marketing, finance, and other roles may factor in.
• Build an Interdisciplinary Team: It is important to remember that a great team is composed of individuals with diverse knowledge, expertise, and backgrounds. Assemble a team with experts from every discipline and encourage them to provide feedback and support for one another’s ideas. This will help ensure that the team is always developing the best possible product.
• Set Clear Expectations and Goals: Every team member should have a clear understanding of the expected time commitment, goals, and responsibilities for their role. This helps ensure that everyone is on the same page, and the team will be able to work efficiently and effectively.
• Celebrate Successes: Setting goals and expectations is important, but it is also important to recognize and appreciate the hard work of the team. Celebrating successes, both large and small, will help motivate the team to continue working hard and stay focused on the mission.

By constructing the right product development team and setting clear expectations, you will be well on your way to launching a successful video game company.

Start Working On The Development Of The Video Games

In order to start working on the development of the video games, you will need a strong team of qualified technicians and developers who understand the gaming industry and its trends. Here are some tips and tricks to help you assemble your development team:-

• Identify the core skills you need : To start with, you need to identify the core skills you need for the game's development such as programming, experience with video game engines and tools, server-side engineering, game design, art, and audio. You will need to decide which skills you need in-house and which ones you can outsource.
• Look for experience and collaboration : Besides having qualifications and experience, developers should be engaged and passionate enough to work together as a team. Try to look for people who can work in collaboration, who value teamwork and communication, and who share your values.
• Develop recruitment and onboarding strategies : As you start building a development team, you need to decide the best ways to recruit the right people. You can try to hire developers through online job portals, refer to past employers, or even connect with game development schools where you can find active and talented developers. You should also have a clear onboarding strategy in place to make it easier for hires to adapt to your work process.
• Provide for the necessary resources : Once you have assembled the team, the next step is to provide them with the necessary tools and resources such as software, hardware, and other equipment. A solid game development requires top-notch tools and resources, and you should invest in these to produce a game of quality.
• Set up team goals and function : It is important to establish clear goals and expectations that apply to each team member. Additionally, you should assign specific roles to each team member, such as director of gameplay, director of graphics, sound designer, etc., and try to keep them focused on the tasks they are assigned. Having a clear roadmap and timeline is also essential in ensuring that the development process runs smoothly.

With the right team and resources on board, you will be well on your way to launching your own video game company. With patience, care, and a well-organised game development plan in place, you can be sure to succeed.

Launch The Company Website And Digital Presence

Once you have your mission, vision, business plan, and product development team in place, you can start building your website and digital presence. To do this, consider the following tips and tricks:

• Choose the right platform: The right platform for your website should include a combination of design, responsiveness, and feature-rich content. Do your research on which platform is best for your company and the types of video games you’ll be developing.
• Make sure the website is easy to navigate: The website layout should be simple and easy to understand so that visitors can quickly find what they’re looking for.
• Create a blog section: A blog section allows you to showcase your expertise, showcase the development process, and build trust with potential customers.
• Highlight customer reviews: Make it easy for customers to leave reviews. This way, you’ll be able to boost the confidence of potential customers with the positive feedback left by existing customers.
• Integrate social media: Make sure there is easy access to your social media accounts such as Twitter and Instagram. This will help visitors to stay updated on the upcoming video game releases and other news related to the company.

Launch The Product In The Market Via Vital Marketing Channels

Once the video games have been developed, a vital marketing channel needs to be established in order to launch the product in the market. There are several marketing channels available to promote the video game company’s products, including:

• Social media campaigns: A social media campaign is an effective way to reach a large number of potential customers in a short period of time. Social media campaigns should include the use of images, videos, and other creative content to capture the attention of potential customers.
• Email marketing: Email marketing campaigns are a way to send out promotional content, such as discounts and offers, directly to the customers’ inbox. Email marketing campaigns should be topical, informative, and engaging in order to be effective.
• Advertising: Advertising is another way to reach a large number of potential customers. Advertising may be done through traditional methods, such as radio and print advertising, or through digital advertisement platforms such as Google Ads.
• Content marketing: Content marketing is a powerful way to create brand awareness and visibility. Content such as blogs, videos, and images should be created and shared through major social media channels and other content outlets.
• Public relations: Public relations is the process of establishing relationships with the media, influencers, and other organizations in order to gain positive publicity for a brand. A successful public relations campaign should be well-targeted and have a clear message.

When launching the product in the market via these marketing channels, it is important to keep track of the progress of the campaigns in order to ensure the success of the product launch. Tracking metrics such as the number of views, interactions, and conversions of each campaign is essential for the success of the product launch.

Monitor Customer Feedback And Adjust The Products Accordingly

The success of any video game company depends heavily on customer feedback . Accordingly, it's essential to monitor and analyse customer feedback regularly to adjust the products that you offer. Here are a few tips for monitoring customer feedback and adjusting products accordingly:

• Stay Active on Social Media – It’s important to keep a close eye on social media for customer comments, feedback and inquiries. Become a part of industry discussion and actively respond to customer feedback in a timely manner.
• Utilise Qualitative and Quantitative Analysis – Collect useful comments and feedback from your customers, analyse the data and use the results to adjust product features.
• Test the Products – Make sure to test the products you create in order to obtain detailed insight into how they work. Test the products in any combination or version that may be necessary.
• Utilise Surveys – Utilise surveys and polls to collect customer feedback and gauge customer sentiment towards each product.
• Organise Focus Groups – Organise focus groups with customers to gain even more feedback and suggestions on how to further improve the products.

Track Competitors Moves In the Market And Adjust Company Strategy Accordingly

As a business owner, it is important to keep a close eye on the competitors in the market. This will help you better understand the opportunities and threats within your market. You should also be able to predict the behavior of the competitors, identify their strategies and adjust your company's strategies accordingly.

To get started, here are some tips on how to track your competitors’ moves in the market and adjust your company strategy accordingly:

• Stay informed about the latest trends in the video game industry.
• Set up google alerts for key competitors and industry trends.
• Monitor your competitor’s social media profiles and website.
• Compare new product launches or services your competitors are offering.
• Track pricing, discounts, and promotions.
• Analyze customer reviews of your competitor’s products or services.
• Conduct surveys and market research to measure customer sentiment.
• Subscribe to newsletters and industry publications for getting the latest updates.
• Attend trade shows and industry events to get insights.
• Analyze their marketing strategies and campaigns.

By keeping track of your competitor's moves in the market, you will be able to adjust your company strategy accordingly and remain ahead of the competition. Additionally, it will help you identify the opportunities that you might not have considered before.

Launching a successful video game company business is no simple feat and requires dedication, discipline, and resourcefulness. The steps outlined in this article provide a comprehensive checklist to ensure that you have all the necessary preparation before launching the business. Identify a clear mission and vision, craft a viable business plan and financial model, develop a marketing strategy, and create a product development team. Once the product has been developed and launched, track customer feedback and monitor competitor activity in the market to ensure that the company can adjust its strategy accordingly for long-term success.

By following these twelve steps, you will have a better chance at succeeding in the competitive video game industry and establishing your own successful video game company business.

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Gaming Lounge Business Plan Template

Written by Dave Lavinsky

Gaming Lounge Business Plan

Over the past 10+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their gaming lounge companies.

If you’re unfamiliar with creating a gaming lounge business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a gaming lounge business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your gaming lounge business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a gaming lounge business or grow your existing gaming lounge company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your gaming lounge business to improve your chances of success. Your gaming lounge business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Gaming Lounge Businesses

With regards to funding, the main sources of funding for a gaming lounge business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for gaming lounge companies.

Finish Your Business Plan Today!

How to write a business plan for a gaming lounge business.

If you want to start a gaming lounge business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your gaming lounge business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of gaming lounge business you are running and the status. For example, are you a startup, do you have a gaming lounge business that you would like to grow, or are you operating a chain of gaming lounge businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the gaming lounge industry. 
• Discuss the type of gaming lounge business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of gaming lounge business you are operating.

For example, you m ight specialize in one of the following types of gaming lounge businesses:

• Gaming lounge membership club : While the lounge is dedicated to serious video game play, the members-only club creates a community of friends and hours of enjoyment. Members pay monthly dues for unlimited access to video gaming, virtual reality and class video slot machine play.
• Board game cafe: Board gaming cafes are dedicated to board game aficionados who join any games that appeal to them. Appetizers and beverages may be offered.
• Arcade gaming lounge: For video arcade diehards, the arcade gaming lounge represents the classic arcade games much beloved by players. Games are video slot machine-play.
• Gaming bar and grill: For players who like to combine the latest video games, virtual reality and high-end technology, gaming bars are the go-to place. Players typically have a choice of beer, wine or cocktails with favorite foods, such as burgers and fries, from the grill. 

In addition to explaining the type of gaming lounge business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of gamers served, the number of large gaming events held, or, reaching X number of lounges opened, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the gaming lounge industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the gaming lounge industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your gaming lounge business plan:

• How big is the gaming lounge industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your gaming lounge business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your gaming lounge business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, club members, event partygoers, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of gaming lounge business you operate. Clearly, individuals would respond to different marketing promotions than event partygoers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r gaming lounge businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes bowling alleys with pinball machines, at-home gaming, or gambling with casino-play. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of gaming lounge business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide rewards for frequent players?
• Will you offer events, such as video tournaments, that your competition doesn’t?
• Will you provide the newest technology in gaming consoles?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a gaming lounge business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f gaming lounge company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide gaming tournaments, rewards for frequent players, themed parties, club membership perks and extended gaming hours on special occasions?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your gaming lounge company. Document where your company is situated and mention how the site will impact your success. For example, is your gaming lounge business located in a popular restaurant and theater district, a standalone building or in a “destination” setting? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your gaming lounge marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in gaming magazines
• Reach out to gaming websites 
• Distribute flyers for special gaming events
• Engage in email marketing
• Advertise to club members on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your gaming lounge business, including adding and maintaining video machines and equipment, planning and providing tournaments and special events, restocking food inventory, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth gaming tournament, or when you hope to reach $X in revenue. It could also be when you expect to expand your gaming lounge business to additional locations.

Management Team

To demonstrate your gaming lounge business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing gaming lounge businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a gaming lounge business or successfully running a video arcade or casino gaming room.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 10 new video club memberships per day, or develop new ways to enhance video gamer play areas ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your gaming lounge business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a video game room business:

• Cost of gaming equipment and maintenance
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and foodstuffs, board games, barware, or restaurant equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of club memberships generating steady income.

Writing a business plan for your gaming lounge business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and understand how to start a gaming lounge business. You will understand the gaming lounge industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful gaming lounge business.

Gaming Lounge Business Plan FAQs

What is the easiest way to complete my gaming lounge business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your gaming lounge business plan.

How Do You Start a Gaming Lounge Business?

Starting a gaming lounge business is easy with these 14 steps:

• Choose the Name for Your Gaming Lounge Business
• Create Your Gaming Lounge Business Plan
• Choose the Legal Structure for Your Gaming Lounge Business
• Secure Startup Funding for Your Gaming Lounge Business (If Needed)
• Secure a Location for Your Business
• Register Your Gaming Lounge Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Gaming Lounge Business
• Buy or Lease the Right Gaming Lounge Business Equipment
• Develop Your Gaming Lounge Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Gaming Lounge Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Gaming Lounge business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s business plan professional services can help you create a winning business.

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Half of the US population are digital gamers in 2024, presenting a big opportunity for brands looking to engage with new audiences

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Video games have evolved into a potent platform for advertising, offering a unique and engaging medium for brands to connect with consumers. With the exponential growth of the gaming industry, advertisers have recognized the immense potential to reach diverse demographics, including hard-to-reach younger audiences, through this interactive channel. 

Video game advertising varies from subtle product placements and in-game billboards to more immersive experiences like “advergames” (i.e., games that are specifically designed around a brand). This fusion of gaming and marketing not only provides innovative ways for advertisers to convey their message, but also adds a new dimension to the gaming experience, making it a win-win for both the gaming industry and advertisers. In this guide, we explore the evolving facets of video game advertising.

• Want to learn more about video game ads and other marketing trends?   Sign up for the EMARKETER Daily newsletter.

What is in-game advertising?

Video game advertising, or in-game advertising, refers to the integration of marketing content into the gaming environment. This can range from subtle product placements within a game to full-fledged advertisements during game loading screens or as part of the gaming interface.

In 2024, US mobile game ad revenues are forecast to reach $7.74 billion, a 13.0% increase YoY, per an October 2023 EMARKETER forecast. For reference, total game ad revenues will be $8.53 billion, meaning mobile game advertising makes up 90.7% of gaming revenues. 

Mobile game ad revenues will only be 2.5% of total digital ad spending in the US in 2024. 

Types of in-game advertisements

Just as there are different ad formats for internet advertising (display or video), in-game advertising offers a range of different ad placements and types.

• Static advertising: Ads that are built into the game and cannot be changed without an update.
• Interstitial advertising: Full-screen ads that play during natural pauses in gameplay, such as different levels of a game.
• Dynamic in-game advertising: Unlike static ads, dynamic ads can change based on various factors like the player’s location, time of day, or game progress. 
• Product placement: This involves integrating a product, brand, or its attributes into a game in a way that feels like a natural part of the game’s setting. For example, Chipotle has had a virtual restaurant within Roblox since September 2021. The restaurant chain uses this space to run limited-time cross-promotional events.
• Sponsored content or events: Brands can sponsor special game content such as levels, missions, or in-game events. Samsung began offering exclusive Fortnite skins in 2018 to people who purchased a Galaxy phone. The Samsung Fortnite skin garnered 2.6 billion impressions and won a Webby Award .
• Interactive ads: These ads allow players to interact with the advertisement in some way. This could be as simple as clicking on a banner ad for a reward or more complex interactions like mini-games.
• Reward-based ads: These interstitial ads include a reward of in-game currency for watching the ad to completion.
• Intrinsic/native advertising: These ads are designed to blend in seamlessly with the game environment and gameplay, making them less intrusive. The ads might mimic the game’s graphics and style to appear as part of the game itself.
• Banner ads: Ads overlaid on part of the screen during gameplay.
• Video ads: Advertising offered in video form, which can include a reward (e.g., a player receiving a game reward for watching an ad). 

What are advergames?

In-game advertising and advergames represent two different strategies for integrating marketing within the gaming world. 

In-game advertising involves placing ads such as banners, billboards, or product placements within existing games, aiming to expose players to these ads during their gaming experience without altering the core gameplay. This approach is cost-effective and allows brands to tap into the existing player base of popular games. This strategy can also be used for building brand awareness.

Advergames, on the other hand, are custom games specifically developed by game developers around a brand or product, with the entire game serving as an interactive advertisement. This strategy focuses on creating a deeper brand engagement by immersing the player in a game environment wholly centered around the brand’s message. While more costly and less flexible than in-game advertising, advergames offer a unique and engaging way to connect with consumers. 

Examples of advergames include Chiptole’s Scarecrow, a game where the titular character farms food for a healthier environment, and Chex Quest, a game developed for the cereal brand that mirrors the popular video game Doom. 

The choice between these two approaches depends on a brand’s marketing strategies, objectives, budget, and the level of desired integration with a gaming experience.

Gaming industry advertising trends

While the gaming industry doesn’t get as much attention from marketers as connected TV or retail media , it is in the middle of a long stretch of exceptional ad revenue growth. Advertisers are projected to spend $8.53 billion in 2024, with total US game ad revenues more than doubling within the last five years , per an October 2023 EMARKETER forecast. By 2026, it will break through the $10 billion mark. 

Still, there is a disconnect between the amount of time gamers spend with the medium and the amount of ad dollars going to it. In 2024, time spent in mobile games will represent 10.7% of total mobile time spent in the US. Mobile gaming ad revenues will represent 3.8% of total mobile ad spend. 

In-game ads are appealing for big advertisers to reach their target audience. In 2022, the Interactive Advertising Bureau and Media Rating Council updated their in-game ad standards for the first time in more than a decade. Typically, in-game advertising is the area where competing developers fight for players’ attention, but  larger brands with substantial budgets, are making their presence felt.

There are more monetization opportunities with mobile than console or desktop/laptop gaming, like interstitial ads, brand marketing via in-game events, and branded goods. Alternatively, PC and console gaming heavily rely on subscriptions and purchases. Static surface advertising and real-time events like sports games are also beneficial gaming avenues for marketers.

Gamers ages 65 and older are on the rise, representing a new demographic for video game advertisers. With that said, younger gamers have increasing purchasing power and are more likely to already be gamers.

Esports (electronic sports) are a subsection of video games, which are organized gaming competitions among professional players and teams. Esports offer a host of marketing and advertising opportunities, including sponsorships, partnerships, and gamer influencer collaborations. 

Benefits of in-game advertising

Companies looking to experiment with gaming ads should consider focusing on a specific platform or game genre. 

For example, a furniture brand can work with a social simulation game. Ikea collaborated with The Sims 2, featuring 76 items in the game that can be used to decorate living rooms, bedrooms, and home offices. Another example is athletic apparel companies Puma and Nike being featured in the basketball video game NBA 2K22. These are straightforward strategies that are logical because the companies sell goods similar to what is featured in the game of choice. 

Alternatively, targeting strategies could rely on demographic insights. A fashion brand looking to engage mothers can introduce virtual goods via hypercasual and casual mobile games as those are the types of games that target demographic attracts, per our Video Game Marketing and Monetization 2022 report.

Casual games need little to no tutorial, can be played in short bouts, and are often puzzles, casinos, or word games, as defined in our Video Game Marketing and Monetization 2022 report. Candy Crush Saga is an example of a casual game. Typically, older millennials and Gen Xers are the main audience for casual games.

Hypercasual games are an even easier to play subset of casual games (e.g., High Heels! and Flappy Bird). These kinds of games attract Gen Z and younger millennials with a slight curve toward women. 

The most successful types of gaming ads are sponsorships, advergames, and virtual goods because they offer something different from the traditional game marketing approach like TV or social advertising. 

These ads not only help with revenues, but can also strengthen user engagement via actual gameplay by offering new features, cosmetic items, or other perks for players to engage with. Gaming ads also have the potential to reach a newer audience if it goes viral (e.g., the Flappy Bird filter on TikTok). 

US gaming statistics 

More than half (54.6%) of the US population will be digital gamers in 2024, per an August 2023 EMARKETER forecast. 

• Mobile gaming will be the largest segment, with 168.2 million people—or 49.2% of the population—playing games on smartphones.
• There’s overlap between mobile, console, and desktop/laptop gamers: Almost 9 in 10 digital gamers play on mobile, meaning that a little over 10% of gamers are solely committed to desktop or consoles.

Although there’s a significant overlap, demographics vary between the platforms. 

• The stereotypical gamer is thought to be a young male, but according to a June 2021 Comscore study, three-quarters of mobile-only gamers are female. 
• Men are more prominent in console and desktop/laptop gaming, however, where they make up two-thirds of the players on both devices. 
• The gaming audience also skews younger. In 2024, 75.1% of users ages 18 to 24 will play video games, per an August 2023 EMARKETER forecast. 
• In contrast, TV penetration for the same demographic is just 54.5% and falling, according to our February 2024 forecast.

Gen Z gaming stats

There will be 50.4 million US Gen Z digital gamers in 2024, per our August 2023 forecast. Millennials , for comparison, will have 47.5 million. The gap will widen and reach a difference of 5 million by 2027. 

Per a March 2023 Kagan survey, 63% of US adult Gen Zers play games at least once per week on their console or PC, while 71% play mobile games . But according to an April 2023 Giraffe Insights and Precise TV survey, teen Gen Zers (ages 13 to 17) are more likely to play on a console than on mobile or PC. This is likely due to them not having phones long enough to build years of mobile gaming habits. 

Time spent playing games

Mobile gaming has become one of the most popular and accessible forms of gaming thanks to the widespread adoption of smartphones and tablets.

The average daily time spent on a mobile device for gaming in the US is projected at 26 minutes in 2024, a 4.8% increase from 2023, per a February 2024 forecast by EMARKETER. For reference, time spent gaming on desktops/laptops will be 17 minutes and other connected devices (e.g., smartwatches and connected game consoles) will be 18 minutes. 

Video game marketing and monetization 

In addition to advertising in video games, there are other opportunities for marketing and monetization, including in-app purchases (IAPs) for things like subscriptions, in-game currency, and premium content. 

Virtual goods (e.g., buying coins to get to the next level) IAPs in gaming will reach $22.50 billion in 2024, per our July 2023 forecast. In-app subscription spending in gaming will pale in comparison, reaching less than $1 billion ($940 million).

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