Chapter 2.0: Introduction

The game development market is overcrowded. Of the thousands of games released every year, only a few hundred ever receive wide distribution, and a mere fraction of those earn significant profits. But by far the most common cause of failure of new studios (and of new businesses in any field, for that matter) is insufficient preparation.

Time and time again, successful programmers, designers, and artists have left their jobs to create high-profile studios, only to see their new companies fizzle for lack of business acumen. For those who create startups with little or no prior industry experience, the odds of success are even slimmer. If you decide to start your own company, make sure that you have access to the right management, sales, and legal resources—preferably among the shareholders. Then, prepare a solid business plan, identifying an opportunity that you and your team are uniquely qualified to profit from, and you will be on your way.

The articles in this section describe ways to improve your chances of starting a company that will beat the odds and achieve long-term success:

• Freelance designer Sean Timarco Baggaley examines several of the common mistakes made by new developers and explains how to avoid them.

• Freelance consultant Fran ois Dominic Laram e describes how to write a successful business plan.

• Game industry recruiter Grant Stanton explains techniques for optimal personnel selection.

• Veteran producer Tom Sloper explains the tricks and pitfalls of acquiring an existing game development company.

• Independent studio owner Thomas Djafari describes the financing alternatives available to startups.

• OpenPath Products CEO Johanna Wilson explains how to build a successful business in wireless game development.

• Game writer and Grammy-nominated music video director Sande Chen describes the pros and cons of using the Internet as a distribution channel and a sales tool, based on the experiences of several companies.

• And finally, Fran ois Dominic Laram e explains how to prepare for a career as a game development consultant and sustain your new business' success in the long term.