Understand the business model commonly used in the game development industry

Business model in the game development industry- Standard 9

Funding/Marketing/Selling Games

In order for games to be made they have to be funded

You could have the best idea for a game, but without funding's you cannot start your project

They're are plenty of ways to get funded for your game

you can either ask the government for funds, you can get a loan from a bank, you can fund yourself.

Afterward, when you have developed your game, you need to market your video game

Marketing your game means to get the word out about your game.

This will help advertise your game so people can see what you are creating

You can possibly market your game by creating a commercial for t.v, advertisement in the newspaper, or create a website

You want to make the cover for your game look appealing to what ever target audience you are going for

When it comes to selling games, companies sell their video games in stores like Wal-Mart, Target, Best Buy etc. They can sell their game on their website, or place an ad on another persons website

Licensing Management

Licensing Management ensures the collection, distribution and tracking of licensed content

Each gaming platform is licensed by a company to ensure full ownership of their product

For example, the PlayStation 3 is licensed by Sony, and the Xbox is licensed by Microsoft

Without licensing management different people could claim that a certain product is theirs when it is not

A way to copyright your idea would require you to go to the U.S. Copyright Office, and what they do is put a patent on your product to ensure full ownership

Product Value and Business Differences

Product Value means to figure out the price of the product you are trying to sell

Business Difference means the difference between different video game companies and how they run their company

For example Microsoft is doing more to make their products optimized and proficient

Sony is more to sticking to it's roots

Microsoft is more of a family type company for video games while Sony is more of a hardcore video game company

Business Models

A business model describes the rationale of how an organization creates, delivers, and captures value

Some different business models are a:

Creator

Distributor

Landlord

Broker

The Creator purchases component parts and raw materials and transform these parts and materials into a sellable finished product

The Distributor buys products and resell them to others

The Landlord represents any company that sells the temporary use of its assets

The Broker perform a service by matching buyers with sellers of goods and service

The creators goal is to sell their product that they have created

Distributors often test their product before trying to resell the product

Landlords often handles financial assets ,physical assets, intangible assets , and human assets

Brokers control financial assets without taking ownership of the asset, or in other words they help the landlords

Resources:

www.wikipedia.org

smallbusiness.chron.org

www.advancebusinessconsulting.com

www.ehow.com

www.businessmodelgeneration.com