3 ms·
Games is a hit driven industry and it is incredibly hard to predict what will become a hit. Incredibly great games can underperform for a variety of reasons. Ev
by Tiktaalik 11y ago
Games is a hit driven industry and it is incredibly hard to predict what will become a hit. Incredibly great games can underperform for a variety of reasons. Even a bad release date could really hurt a title.
If one were to attempt to build a larger game company out of a single hit, one would have to create a company that would have a lot of variety of projects and that would be able to weather certain titles bombing. In practice it seems that this is incredibly difficult, as over the years the number of big game studios has steadily shrunk.
- codingdave 11y agoYou would almost have to copy how YC incubates startups - fund small teams to build prototypes, expand and profit on the hits. The individual teams take on the risk, while you are diversified enough to make money on the big picture.
- mmcconnell1618 11y agoI'd suggest a Hollywood movie studio model. One parent company that can groom and produce multiple games in different genres. Each game gets its own company with money invested in development and profits over a limited lifetime in sales. No one expects Titanic to make the same amount of revenue in year 2 as the year it gets released. Expect a huge spike in revenue for popular games early on with a long tail of diminishing returns. If you can capitalize on the intellectual property like Disney does you can create a merchandising revenue stream that may last a long time.