Going Alone: to Self-Publish or to Partner? | Publishing Advice for Independent Developers

Til$ng Point Confiden$al

PUBLISHING ADVICE FOR INDEPENDENT DEVELOPERS

GOING ALONE: TO SELF-PUBLISH OR TO PARTNER?

APRIL 2015


SAM DALSIMER

Previously seen at TriplePoint PR launching games like Candy Crush Saga, Temple Run 2, Kingdom Rush and dozens more.

In Quebec, worked on PR for local studios like Frima, Behaviour (re-branded from A2M), Minority, Spearhead.

Twittering away @samdalsimer

SENIOR PR MANAGER, TILTING POINT WHO AM I?


New generation mobile partner for top independent game developers

WHO ARE WE?

Focus on mobile and tablet platforms

Publishing as a service: •  Funding •  Product management •  Design assistance & UX optimization •  Market research & insights •  Close relationships with key platforms •  App Store optimization & discoverability •  Brand marketing & PR •  User acquisition & advertising •  Scale •  Community and customer service •  Production support

3

Sounds interesting? [email protected]


An innovative platformer from 1337+Senri with cutting-edge graphics, starring a

lovable, unique main character

4 Tim Cook’s Keynote at WWDC 2014

Unveiling of Android TV at Google I/O

On stage at the ADA Ceremony


LET’S GET STARTED ENOUGH ABOUT US


IN THE OLD DAYS… Publishers were needed because of:

Very high cost of development

Retail distribution very important, and very expensive

Large marketing budgets required

Console platforms mostly closed to smaller companies

6


AS A RESULT Publishers held sway, and terms weren’t favorable to developers

7


8

LIMITED CREATIVE CONTROL No or limited IP ownership


HIGH COST STRUCTURES AND LOW ROYALTIES Resulting in low chance of receiving any over lifetime of product

9


FREQUENT CRUNCHES And “death marches”

10


WHAT HAS CHANGED?

(WHAT WAS THE TILTING POINT !?)

11


No physical distribution infrastructure needed Platform barrier of entry effectively eliminated Performance-driven marketing lowering overall costs Indie developers can reach mass audiences directly

WHAT CHANGED? DIGITAL DISTRIBUTION PLATFORMS HAVE REVOLUTIONIZED THE MARKET

12


Cheaper and more accessible engines Smaller teams Shorter development cycles Unlimited upside

WHAT CHANGED? MAKING GAMES FOR DIGITAL

PLATFORM CAN BE MUCH MORE AFFORDABLE

13


WHAT CHANGED? AUDIENCE HAS BECOME

SIGNIFICANTLY LARGER AND BROADER

100M FROM “GAMERS”

2B TO “PEOPLE THAT PLAY GAMES”

14


The work doesn’t end with a big launch

In fact, that’s just the beginning

WHAT CHANGED? GAMES ARE NOW SERVICES

15


GOING ALONE IS STILL DAUNTING

16


PRODUCTION VALUES AND COSTS ARE RISING

17

Growth in development budgets for competitive free-to-play games

2008 2009 2010 2011 2012 2013 2014

$100K $200K

$300K

$700K $900K

$1,100K $1,200K

Tilting Point Confidential


USER ACQUISITION COSTS ARE RISING

18

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

Jan-

12

Feb

-12

Mar

-12

Ap

r-12

M

ay-1

2 Ju

n-12

Ju

l-12

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Ap

r-13

M

ay-1

3 Ju

n-13

Ju

l-13

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb

-14

M

ar-1

4

Ap

r-14

M

ay-1

4

Jun-

14

Jul-1

4

Average cost per install. Source:

iOS

Android Facebook


IT IS INCREASINGLY DIFFICULT TO GET NOTICED AND STAND OUT

Number of game submissions by

month on the iOS App Store

0

1000

2000

3000

4000

5000

6000

7000

8000

200

8-0

6 20

08-

08

200

8-10

20

08-

12

200

9-0

2 20

09-

04

20

09-

06

200

9-0

8 20

09-

10

200

9-12

20

10-0

2 20

10-0

4

2010

-06

2010

-08

2010

-10

20

10-1

2 20

11-0

2 20

11-0

4

2011

-06

2011

-08

2011

-10

20

11-1

2 20

12-0

2 20

12-0

4

2012

-06

2012

-08

2012

-10

20

12-1

2 20

13-0

2 20

13-0

4

2013

-06

2013

-08

2013

-10

20

13-1

2 20

14-0

2

1.2 MILLION GAMES IN THE iOS APP STORE

Source: Tilting Point / 148Apps

19


MAKING GAMES IS NOT JUST ABOUT MAKING GAMES

GOING ALONE IS DAUNTING

Domain knowledge is required in:

CONSUMER INSIGHTS | MARKETING | USER ACQUISITION ANALYTICS | MONETIZATION | QA | ETC.

20


WHAT TO LOOK FOR IN A PUBLISHING DEAL?

21

Now that the playing field is tilted in the developer’s favor, what should you be asking for?


WHAT TO ASK FOR Depending on factors such as level of completion of the game and investment from the partner:

Creative control

Control of the IP

Product management and production support

Platform relationship management

Marketing and user acquisition budget & execution

Ongoing live operations funding

22


WHAT ARE YOUR OPTIONS?

BOOTSTRAPPING

VCs AND ANGELS

CROWDFUNDING

PLATFORMS

INCUBATORS & ACCELERATORS

PARTNERS (EVOLVED FROM PUBLISHERS)

23


PROS No external pressure Complete creative control

No dilution Availability of affordable tech

CONS Limits scope of project Lack of access to external know-how Hard to be noticed with low / no marketing budget

MOST SUITABLE FOR Wealthy people or very frugal people

Small teams with a distinctive game that can be developed on a low budget and find its own audience

BOOTSTRAPPING

24


PROS No dilution Creative control (but careful about upsetting your backers!)

Crowdfunding campaigns are also marketing opportunities Niche projects can get funded

CONS Difficult to be noticed: most crowd funding campaigns don’t gain traction Obligation to deliver on backers’ rewards No support from “investors” beyond funding (and often a lot of nagging)

MOST SUITABLE FOR Anyone that has made a cult game in the ’80s or ’90s

Experienced teams that know how to budget for and how to deliver a game

Niche games that can find a very enthusiastic audience

CROWDFUNDING

25


PROS Office space Some funding

Mentorship Introductions to investors, platforms and publishers

CONS Equity dilution Limited timeframe: teams have to find their way after a certain amount of time

Not all programs are equally useful & reputable

MOST SUITABLE FOR Teams with little experience in the industry needing a lot of guidance and support Studios in jurisdictions that offer government incentives

INCUBATORS & ACCELERATORS

26


PROS Access to sizeable funds

Access to other investors, talent and resources

CONS Strong dilution Loss of control

Most VCs don’t have domain expertise and don’t understand games

MOST SUITABLE FOR Very experienced teams with an understanding of the business side of games Companies with significant traction that want to get to the next level

VCs & ANGELS

27


PROS Strong production and marketing support through the whole development cycle

Guaranteed promotion on the platform without cost to the developer

CONS Limitations on where the game can be published, (either temporarily or permanently)

Giving up control of IP is often a requirement, although this is changing Strong involvement of the platform partner in creative decisions & production cycle

Exposure in change of strategy or staffing in the platform partner

MOST SUITABLE FOR AAA games Uber-cool indie games that make the platforms look good at E3 while they peddle their shooters Teams that have the experience, processes and patience needed to deal with a closely involved partner

PLATFORMS

28


PROS Full-service support (development, marketing, operations, business) Funding without losing ownership and creative control

Allows developers to focus on making great games while their partner handles everything else

CONS Attractive deal terms only accessible to experienced teams with very high-quality games

Size & Relevance of Network

MOST SUITABLE FOR Successful teams looking to tackle more ambitious projects Commercially-minded teams looking to build franchises and brands

PARTNERS EVOLVED FROM PUBLISHERS

29


Best partner depends on genre, platform, scope, team and goals

ONE SIZE FITS ALL DOESN’T APPLY

30


In today’s market, developers have more options and more negotiating power

POWER SHIFT

31


Creative control and not relinquishing IP ownership are key to building a long-term business

CREATIVE CONTROL

32


You will be working with your partner at least through the game’s lifecycle - better enjoy their company

A GOOD FIT IS EVERYTHING

33


Managing all aspects of a business is harder Most developers need partners

MAKING A GAME IS HARD

34


Put your best foot forward and showcase your work:

Gameplay video, playable build, build notes, game document, metrics, etc.

KNOW YOUR GAME 35


Where does your game fit in the market? Where does it fit in a publisher’s portfolio? How far from release?

KNOW WHERE YOU FIT 36


What are you looking for in terms of services and deal terms?

KNOW YOUR NEEDS

37


Negotiation: ask for what you want, but be prepared to take what you can get

GET READY TO TALK $$$

38


Important to introduce yourself: experience, pedigree, staff

Two-way street: you both need something from each other, and both need to prove the value they offer

BUILD A RELATIONSHIP

39


QUESTIONS? www.tiltingpoint.com

[email protected]

twitter - @tiltingpoint

[email protected]

twitter - @samdalsimer SAM DALSIMER

Slide 1 - GasX, Slide 5 - Platinum, Slide 6 - KFC, Slide 7 - 6BEstudio for Top Destinos, Slide 8 - Dulux, Slide 9 - Platinum, Slide 10 - Huzheng, Slide 11 - Canal +, Slide 12 - Curli, Slide 13 - LSD, Slide 14 - Hino, Slide 15 - Vichy Catalan, Slide 16 - Gregor Collienne, Slide 21 - Platinum, Slide 22 - Naolito, Slide 23 - Ramy on Deviant Art, Slide 30 - Carioca Studios for TNT, Slide 31 - Philips, Slide 32 - Mopic for Shutterstock, Slide 33 - Kevin Richardson, Slide 34 - Koen Demunyck, Slide 35 - Harvey Nichols, Slide 36 - Softbox, Slide 37 - Exsens, Slide 38 - Cafe Opera, Slide 39 - Forteo. Sources unknown for all uncredited images.

Going Alone: to Self-Publish or to Partner? | Publishing Advice for Independent Developers

Technology

ng point conden

tilting point confidential

us til

digital distribution

independent developers

triplepoint pr

console platforms

tablet platforms