igda publishers webinar - video games - panel discussion sept 3-2014
DESCRIPTION
Business & Legal Publishers: Who Needs Em There was a time when having a publisher was essential to being a successful game studio. They had access to the retail distribution channels essential to getting your game into the hands of end users. But those days are gone...long gone. Digital distribution changed all that. According to a recent news story, 92% of PC game sales were done via digital distribution. Next-gen console distribution is not far behind either. So, who needs publishers? Our panel will look into the scope of benefits that a publisher can bring to bear on a games launch and look into what, if any, value publishers bring to the table in this brave new world.TRANSCRIPT
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We’ll get started shortly.
9/03/2014
Welcome to IGDA’s Webinar Wednesday!
What is Webinar Wednesday?• www.igda.org/webinars
Reminders• This session is being
recorded.• You will be able to hear me
but I will not be able to hear you.
• But I have a question!
Recording of the presentation can be found at http://youtu.be/pLGxMbDqEX4
9/03/2014www.igda.org
Publishers: Who Needs Em?
Panelists – Short Presenter IntroGlobal Games Market ProjectionsDown and Dirty Business ModelsPublishers View of the WorldSelling Your Soul (IP Ownership)Come Get Your CheeseThe Holy GrailComments/Questions
9/03/2014www.igda.org
David Edery
Twitter: @djedery
Publishers: Who Needs Em?
9/03/2014www.igda.org
Tom Buscaglia
Twitter: @thombusc
Justin Berenbaum
Twitter: @scslug
Newzoowww.igda.org9/03/2014
Traditional Retail ModelWholesale(Gross Revenue to Publisher)
$48.00
Cost of Goods (Includes 1st Party Royalty)
-$10.00
Variable Sales & Marketing (Commissions, MDF’s, Trade, etc.)
-$9.00
Gross Profit Per Unit (before Dev. Costs)
$29.00
Licensor Royalties - (if any)
Developer Royalties5% to 20%
of Profit
Model seems OK, assuming you can move most of your units at full MSRP…
and no returns/price protection
Retail Price =
$60.00 + Tax
www.igda.org9/03/2014
Digital Distribution Revenue Model
Retail Price (Gross Revenue to Publisher/Developer after platform Fee - ~30%)
$10.50
Cost of Goods (Includes 1st Party Royalty)
-$0.00
Marketing (Commissions, MDF’s, Trade, etc.)
-$0.00
Gross Profit Per Unit before Dev. Costs, Q/A, LOC, Ratings,
etc.$10.50
Licensor Royalties - (if any)
Developer Profit $10.50
Model seems OK, assuming you can move most of your units at full price but…
Retail Price =$15.00
www.igda.org9/03/2014
How Publishers See Developers?
From The Far Side by Gary Larsonwww.igda.org9/03/2014
How Much Do You Need?
www.igda.org9/03/2014
Come Get Your Cheese?
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Risk vs. Reward
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What is the Holy Grail?
•Money and Get Out of the Way•Marketing and Get Out of the Way•What is the perfect deal?
www.igda.org9/03/2014