Game Design, Programming and running a one-man games business…

So how about that big pharma game huh?

So big pharma is now being played, in beta, by the general public. And apparently, by most of you, looking at the sale figures. Yikes. We had a few ‘eek the payment provider is overloaded’ and ‘errr…do we have enough keys’ moments over the last few days. And naturally you won’t hear too much from the designer/programmer Tim, because he is crushed under a weight of feedback and working around the clock to churn out a patch that fixes any major issues. Still, its a beta, and it seems to be extremely stable, and very, very popular, which is good.

Nobody who has not shipped a game can really understand just how stressful the first 2-3 hours are after you press the ‘for sale’ button. For Tim, its a case of finding out if his game idea was any good and if his programming is stable, with potentially hugely embarrassing consequences if it crashes for everyone and nobody likes it / buys it. For me (publisher) its finding out where the ball lands on a six-figure roulette wheel bet that was placed a year ago. Stressful either way.

But it turns out that everything is going to go pretty well, because people seem to love it. And obviously me and Tim both think the game is awesome, but you never know. You get too close to it. When I play Gratuitous Space Battles 2, all I see is stuff I want to fix. I have to force myself to step away from my own work and try to evaluate it, and that is HARD.

Anyway, in case you missed the news, Big Pharma is currently in beta, and its doing very well. We have a lot of lets play coverage already, and hopefully some websites will be doing previews. Get in touch with me if you are a site that needs a copy. And if you are a gamer that enjoys Tycoon games, Business sims, Strategy and maybe a side-order of puzzle, you will really like the game, so hit the big phat link below and grab a copy right away :D. (Windows only for now…)

Game Royalty Futures

Welcome to the futures market. This is (sort of) a thing now. Let me explain.

You are a farmer. This is a risky business. You plant loads of seeds, then do whatever farmers do while seeds grow, you harvest the crop and sell it. Hopefully, it makes enough to support a reasonable lifestyle. Classical economics suggests that your profit will be only high enough to prevent other people getting in on this ‘farmer’ thing, and pushing prices down. Theoretically,. you will earn the average wage, +/- some adjustment for skill requirements etc.

But hey. Hold on. Sometimes you have a good crop, sometimes a bad crop. Good crops are happy years, great years! but sometimes there is a bad crop. Sometimes a very bad crop. Some years, you are truly fucked. In theory, you save in the good years, and spend the savings in the bad years. Most people suck at that. Besides, what if your first 10 years are bad years? There is a solution, and some people think its fine ( I do) and some people think that its evil, and smells like predatory capitalism.

future

The solution is called Futures (although it sort of is, and isn’t, yes, this is very simplified).  Lets pretend I’m an evil mustache twirling capitalist. I go up to the farmer and say ‘Guess what! I’ll pay you for next years crop NOW. I will pay you 80% of what you probably get for it. Deal?’.

On the one hand, thats a rip-off, I’m creaming off 20%. On the other hand, suddenly the farmer has a completely risk-free job. he doesn’t care what happens to the weather and his crop, he can sleep easy at night. Basically the rich capitalist dude has leveraged his greater stock of capital to take a risk the farmer cannot afford to, or does not wish to (maybe the farmer is old, and risk-averse, and the capitalist is some young adrenaline junkie).

I LOVE things like this. I love the existence of such phenomena. I don’t know why. Something about the maths, and the calculation, and the balancing of risk vs reward just sets off serotonin generators or some-such. I find it fascinating. The same with options (which are risky as fuck) and other such financial messing around.

Anyway… is there a market for this in game development? I think there is. Its been with us (in some respect) as publishers for ages, and I hear people are doing this with finished games now too.

So look at it like this…. you have made your game, it took you two man years, you worked hard, its finished, its good. You think it will do well. You are hoping that it will pay for the development of your next game. Think through the scenarios.

Leonardo Dicaprio in The Wolf Of Wall Street

If I paid you $200,000 to take all the future royalties of your game right now, would you take the deal? (You keep the IP, sequel rights etc…). I get to control pricing and bundles.

If I paid you $180,000 to take 90% of the royalties would you take the deal?

Its day 1 on steam and the game has earned $2,000 in the first 24 hours. Both offers still stand. Interested? (I get that 2k as well).

It’s day 30 on steam, no discounts yet, and the game has earned $20,000. Yesterday it earned $150. Both offers stand. Interested?

Don’t forget that you get the ‘time value of money’ if you take the deal. In other words, you get $200k right now, which you can use right now, as opposed to drip-feeding in royalties over time.

I’m not saying thats a good deal or a bad deal, obviously it MASSIVELY depends on the game. I just find the poker-playing / calculation of such deals to be fascinating.

How much would you pay *me* right now to own the future royalties of Gratuitous Space Battles 2? (they aren’t for sale :D) or Big Pharma? :D

 

 

The impossible question: How many copies can you sell?

If you aren’t already aware, I’m the guy who made the Democracy series of games. They are my top selling games so far. Because they have done well, my natural timid brutishness makes me think I’ve ‘maxxed out’ their sales, but the occasional binge reading of Peter Thiel books or articles on silicon valley websites makes me wonder just what percentage of the market I have reached with that game.

A quick look at steamspy will tell you that there are currently this many owners of Democracy 3: ( I make no official comment as to their accuracy :D).

d3
So lets assume  assume its vaguely right and 370,000 people have bought it. Lets also assume that given the various discounts over the years, on average people have paid 50% of the face price of $24.95, so that gives a total income (gross) of $4.6 million. Sweet. Assume roughly 70% of that for the developer is $3.2 million before taxes. Thats a big hit in indie game terms, but exactly HOW big is it? Lets look at a few other stats, with the same data.
Space engineers has the same price, but 1.2 million owners, theoretically thats around $10.4 million for the devs. Jesus. Even more crazy but how high can we go? And are the games in any way comparable?

Space Engineers supports 15 different languages, Democracy 3 supports a lot less, and not too well either. Is this something I should improve perhaps? On the other hand, it has no DLC, whereas there are 3 expansions for D3, so I’m not comparing apples with apples here. Plus, is the market for a deep political game like D3 the same as space engineers?
Well lets look at other politics games on steamspy:

The Political Machine 2012: 87,000 * $3.99. $347k max 170k gross, 0.03 x Democracy 3.

Tropico 4: 1,200,000 * 19.95.  24 million max, 12 million gross, 3x Democracy 3.

Tropico 5: 383,000 * 39.99. Thats $15 million max, 7.5 million gross.  2x Democracy 3.

CIV V. 7,000,000 * $30. Thats $210 million max, $105 million gross,  22x Democracy 3.372

The production cost of Democracy 3 vs all of those games is obviously way lower, but lets assume, for arguments sake, that the total potential market for Democracy 3 is one tenth that of Civ V, given that we can reach EVERYONE who might buy it. Thats $10 mill gross, or in other words roughly $4.2 million of developer revenue sat out there waiting. Hmmm…

Its VERY easy to live in a developer bubble where you assume that because you’ve written 100 blog posts about your game and read 20 reviews, seen 100 lets plays, that EVERYONE knows about the game. Get this for context… I was chatting to one of my closest buddies recently. He is my age, he plays games, but isn’t much of a geek. He didn’t know what twitter was or how it worked.

HE DIDN’T KNOW WHAT TWITTER WAS.

God knows how many bazillion dollars of free PR, and this guy had never heard of one of the largest more pervasive companies on the planet. Such people exist. More than you think. When you have conversations like that, it makes you realize just how trivial the number of people playing your game is. Lets assume steamspy is spot on (and ignore everyone who bought it off other sites), and say that 372,000 people own Democracy 3. Lets show them on the map:

belize

There you go. That’s the entire population of Belize. Wohoo. There are a lot more people to sell my game to.
Right now, my facebook ad campaign for Democracy 3 tells me my target group contains 8,600,000 people, based on the countries, demographics and specific interests that I selected. That’s people who use facebook, which isn’t everyone. Assuming one tenth of those people *will* actually buy the game if I can get them to take a look at it, then thats an extra 488,000 copies to sell. In other words, I’m half way through selling Democracy 3.

Nuts isn’t it.

Problems:

  • Some of these people may already have pirated the game.
  • Some of these people may have tried a demo or seen a video and not like the game
  • Some of them may only be prepared to, or able to pay a price below which it make no sense for me to sell (due to alienating higher price customers). The $0.99 buyers.

I’ve already hopefully screened out everyone else. They are all pc-owning strategy game loving English speaking desktop pc users in targeted countries, of the target age. Lets say that even given all of that, that in fact 10% is wildly optimistic and say just ONE per cent are actually interested… thats another 48,000 copies at an average of $12 a copy. That’s a Tesla model S with all the optional extras :D.

 

Implications of a global market on random success

I might be unpopular in this post. If you are a huge minecraft / star citizen / flappy bird and gangnam style fan, look away now.

I think there is a phenomena that is becoming stronger and stronger and I think its bad news for all content creators. Well, for 99.99% of us. That phenomena is the globalization of media, and the concentration of it in a few hands.

Zap back a few hundred years, and you could be the #1 best Lute player in the village. Nobody else could touch you for lute playing. You rocked. 30 miles away there was a better lute player, but nobody ever left their village anyway, so who cared. You could play the lute, and people would pay you to hear it. Happy times.

Zap forward a bit and we have TV and radio. And thats different, because now you can hear that Lute / guitar player from the next village on the radio. And that means everyone in the country can hear him. So that guy gets to be a big national star, and the lesser local people don’t do so well. And thats tough for them, but probably not a total disaster. After all, competing with every guitar player in the UK is tough, but you aren’t competing globally. BBC radio doesn’t play in Islamabad, and  (and this is crucial) even if it did, nobody would like your weird English music over there anyway, due to cultural differences.

lute

The latest transformers movie had a scene set in China, and dialog where people say to trust the government to save them. Both put in to keep Chinese audiences / government officials happy. This is what happens now. Nobody makes a movie based on selling it to people in their country. The stuff is global. It has been, obviously for decades, but its becoming more and more so every year. Now entertainment is predominantly digital, there are literally no borders now. Staggered release dates wont last much longer. Cultural differences are eroding.

So now for the first time we seeing the emergence not just of monopolies on a national level, but an international level. Not just in terms of software and services, but in terms of culture. I never thought I’d see a Korean rap star become a global phenomena. I witnessed middle aged men dressed up as the ugly sisters from Cinderella doing a gangnam style dance one Christmas in Longleat house, England. This is new.

gangnam

When culture is global, and popularity is global, there is only one chart. THE chart. Everyone knows what everyone likes, and what already has coverage gets more coverage. Saturation coverage.

The itunes charts are pretty much *the place* for apps. Get to the top there, and you are laughing. The problem is, because there is less variety in charts / news outlets / media globally now, you are getting more of a centralized consensus on what is good. People who are only going to write about one pop song (the very mainstream non specialist media) would write about gangnam style. One mobile game? well flappy bird obviously (or angry birds…), one desktop game? well obviously minecraft.

And this leads to the crazy irony of the most successful, popular content getting more and more publicity. Thats always been true but its getting much, much worse because now that is global. Why do I care? why is this bad?

I think its bad because it leads to random perturbations becoming exaggerated. A slight boost in popularity of something bumps it from #100 in a chart to #9. it gets more attention so it goes to #1, and then so much attention it stays there, and then the mere fact that it stayed there becomes newsworthy making it even more popular, and the cycle continues, all potentially from a tiny, tiny bump, maybe a single media personality took a liking to it. A minor disruption in a flat surface is exaggerated to a mountain.

348906-7-tips-for-high-scores-on-flappy-bird

What I’m saying is that gangnam style, minecraft, flappy bird and star citizen are not *THAT* good. I’m not saying they aren’t good, or great even, or amazing even, but the level of popularity is totally disconnected from the quality at some point above the ‘ten million copies sold’ level. Stuff is getting bought *because it is getting bought*. And stuff is becoming popular *because it is already popular* and that sucks, because when you produce content, the success of it is too much attributed to luck. And thats bad, bad bad.

One of the bright points in all this is actually steam. Steams front page re-coding is awesome, and exactly what was needed. Beforehand, if a game got a front page feature, it became popular, and sold a lot, and the word of mouth generated a lot of sales which led to a front page feature and…. etc. Now, there is no such thing. If you love complex PC strategy games and politics, you might be staggered at the promotion my game ‘Democracy 3’ gets on steam. But thats just for you. Steam now has hundreds of micro-niches, and lots of developers have the chance to be popular in that niche.

minecraftXCMqB

We need the same for all media. Why do ‘pop charts’ even exist? or movie charts? Why on earth does the fact that ‘fast and furious’ made X dollars have any newsworthy value outside of the industry? Should I go and see it because its popular with everybody else? Fuck no. Charts suck. Charts encourage a homogenization of culture and promote the bland and inoffensive.

So why don’t apple do what steam do and fix this problem? Because *they do not need to care*. As a developer, its terrifying to know a game I make will almost certainly fail, but *might* become minecraft or flappy bird. Thats a very very risky industry. But for people with an online store, they (except steam) don’t care. Why should they? They don’t care if the #1 game is awesome or a fart joke. They collect their slice of *all* the money anyway. Running in app store is the ultimate hedging strategy in games. I wish I owned one :D.

Well my game is on sale…time to relax? Ahahahaha

There is nothing relaxing about the day after launching a game. Especially when you do this for a living, and other people depend on you. Its a huge, big deal. Its basically betting your one and a half years income on a roulette wheel. And the worst thing is, it can be weeks or even months before you really know if it worked. Terrifying. I read a lot of books about similar (more established industries) to give myself some perspective. One of the Harry Potter movies (not the first one) LOST money at the cinema. Despite tens, probably hundreds of millions of people seeing it, it LOST money. They broke even, then made a handsome profit, only after all the TV rights, DVD, Blu-Ray and merchandising income came in. Imagine taking in $200 million+ and thinking “Yup we are still in the red guys. Don’t worry, it’ll be fine in the long run.” Holy fuck.

Thankfully I’m not *that* much down right now, but I’ll still have a celebration pub lunch on the day I break even.

The launch has gone ok, in that people are buying it, it jumped into the steam charts, people are playing it, they are uploading steam workshop entries for their ships, and I’ve got some very nice comments about the graphics. That’s all awesome, and trying out some of the challenges is hilarious. You people are very inventive when it comes to both ship and fleet design. I’ve got my ass kicked many times already :D

workshop

I’ve already patched it twice (yup I’m nuts). and am planning another one in a few days. There is a lot of admin overhead in patching the game, so I want t make each patch worth it, especially as I’ve fixed a bunch of urgent issues, and can now track down more obscure issues and the odd crash.

Of more interest will be what I’m learning about releasing a game in 2015 vs one in 2013. Holy fuck, its got harder. here are some observations.

1) There are so many games the media (inncluding youtubers/twitch streamers) won’t care that you released a new game without real hand-waving and pleading. Just being a good, quality game isn’t going to cut it any more. Unless your game has a famous actor in it, or is hilariously weird in its premise, or has some other non-game related ‘hook’ for the press to get excited about it, you can forget it. I hate worrying about all that. I’m a coder at heart, and this is meaning its getting tougher for me.

2) Ad costs are creeping up. The site takeover costs are stupidly high anyway, but even facebook, google adwords, its all got very very pricey.

3) There is a definite tendency for everyone to just add a game to a wishlist and wait for the sale. The inevitable sale. Kinda weird because…

4) There is still the inevitable abusive anger about a game daring to cost $24.95. People moan that the price is too high, then say they only ever buy games at 50% off. There may be some logic there but I can’t quite see it myself. Every game I’ve ever released on steam has had a thread saying its cost too much. I suspect every game on steam has that thread. I suspect its the same posters too…

5) Nobody leaves steam reviews. Seriously, its like pulling teeth persuading people to do so. Which means only people with a bug, or a problem bother, and that drags down the scores. I can see from my stats I have a lot of happy people playing the game, I wish I could interrupt them to ask them nicely to leave a review :D

I’m guessing things are a bit quiet because GTA just came out, and it just started getting nice weather. Games are a long tail phenomena these days. GSB1 made 1% of its total earnings to date in its first week on sale. By that measure GSB2 is going to do well :D. Fingers crossed anyway :D