Bootstrapping - Building and Selling Casual Games

2. Talk overview • My background • Ways I tried to start • Bootstrapping - Zen of Sudoku • Building and selling your casual game • The next phase

3. Definitions • Core - “hardcore” games • Casual - “games for everyone” • Portal – Web site that sells games • Bootstrapping – Building yourself • Ichthyology - Scientific study of fishes

4. Painted frogfish Antennarius pictus

5. Caveats • This is just my experience • Talk proposal 6 months ago • I'm not saying this is the best way • ...and I'm not sure I would do this again • Knowledge is power • Casual getting more competitive • Read the IGDA Casual Games whitepaper • http://www.igda.org/casual

6. Myself • Charlie Cleveland • Game Director, Unknown Worlds Entertainment (founded 2001) • San Francisco start-up with roots in core • Two full-time founders, 5-10 distributed collaborators • Our goal: unite the world through play

7. Natural Selection • Wanted to make real-time strategy/first-person shooter hybrid • Marines vs. Aliens online team game • Released as “total conversion” on Half-life engine in 2002 • Distributed team of 10, 18 months to v1.0 • 65,000 lines of C++ • Budget = $30,000 U.S. • Played for 1.5+ billion player-minutes • Plan to build IP and establish reputation • Money will come somehow

8. Natural Selection Play movie

9. What went right? • Built good IP • Learned how to make online RTS/FPS • Learned how to hire and run a distributed team • Player donations ($22k/year)

10. What didn't • Pretty much everything after release • Supported game for years instead of figuring out how to grow business • Thought it would be easy to: • Get investors • Hire team • Make a game • Make $

11. Starting through investment • First thing I tried, thought it was slam-dunk • Takes about a minimum of six months • Hard to convince • Most expensive way to get $ • Investors never say “no”

12. Things not to say to investors • “Our team is mostly college kids in other time zones” • “Why would I want to sell the company?” • “Profit isn't our goal – we want to unite the world.”

13. Bootstrapping through contracting • Gearbox, Demiurge, etc. did it • Need a team • Good business development • Other people's projects • Can pigeon-hole you • Got one game deal: 39% metacritic

15. Realization “If you don't get what you want, it is a sure sign that you did not seriously want it.” - Rudyard Kipling

16. Making games • Our talent/passion is making our own games • ...not pitching • ...business plans • ...working on other boring games • ...convincing others to let you

17. Bootstrapping "Our main business is not to see what lies dimly at a distance but to do what lies clearly at hand." Thomas Carlyle (1795 – 1881) • Most game companies of yesteryear were able to bootstrap - casual approximates yesteryear • You won't need team, contacts, much business development • Not just for “trivial” or “small” companies

18. Sony's vision • In 1945 Japan: • “To establish a place of work where engineers can feel the joy of technological innovation, be aware of their mission to society, and work to their heart's content.” • “To apply advanced technology to the life of the general public.” • “To pursue dynamic activities in technology and production for the reconstruction of Japan and the elevation of the nation's culture.”

19. First product Rice cooker

20. Bootstrapping Rule #1:Cash flow, not profit • Cash flow • Aim for short development cycle • Short payment terms (45 days) • Recurring revenue • Piggy-back on product/service with large install base if possible • Retail takes too long

21. Profit • Profit – good, but cash flow better • Building audience • Market share • Branding • Infrastructure • Contract negotiation

22. Bootstrapping Rule #2:Don't plan, do • Doors open and close, business models shift, opportunities come and go • Can't predict success • You have nothing to lose • Games (should be) small and quick • So start building

23. Zen of Sudoku • Designed to be the most accessible Sudoku • Relaxing – no game timer, no game end • Teaches you all aspects of game • Print and play unlimited puzzles

24. Zen of Sudoku demo Show movie

25. Zen of Sudoku resources • 22,000 lines of C++ • Used the Popcap framework • 10 months development (design/code) • Started selling beta after 5 months • Part-time artist (5 hours/week) • Part-time musician (20 hours total) • Part-time sound fx (15 hours total • Talent free or paid on back-end

26. Zen Distribution • Demoed to distributors at Casuality 2006 • Since have signed • Steam • Oberon • Shockwave • Garage Games • Retail (Best Buy Target, Walmart, CompUSA)

27. Zen sales data Actual Projected ?

28. What went right? • Cash flow • Backup plan • Next game will be better • Some happy customers • Great @ Sudoku • Closer to my Dad

29. What didn't • Not that much cash flow • Sudoku theme • Money slower than expected • Development longer than expected • Audience factors out of your control • Your game may not sell depending on other games you can't plan on

30. Design parameters • Most important decision you will make • Familiar, but with a twist • Include “progress” elements • Theme • Accessibility - mouse buttons, keyboard • Software rendering

31. Choosing a project

32. Technology • Popcap engine is great • Free • Simple (36,000 lines C++) • Software rendering support • Good community support • User-interface code tedious • Portals used to it • Requires BASS license of ~$200 • Windows/download only • http://developer.popcap.com

33. Flash/Zinc • Flash/Zinc very promising • Development time down to ~3 months • For games without a lot of action/redraw • Probably still need to program • Free Mac/Flash versions • Flash Pro 8 + Zinc = $1,000 • http://www.multidmedia.com/

34. Build options • Make sure it's easy to build versions for portals • Different intro/logo screens • Make easy to remove external URLs

35. Distribution • Main approaches • Shop game to every portal yourself • Shop game to portal who will then shop for you • Sell game/IP outright • License source for re-branding • Don't take exclusive distribution deals • More the better • ~25-50% royalties + ad revenue

36. Distribution methods • Easy to get deals! • Casuality • Next one is July 17th-19th in Seattle • http://www.casualconnect.org/ • Minna Mingle • Sending game via e-mail works too

37. What have you achieved? • Your own company and IP • QA process • Customers! • A team that can work together • Valuable game knowledge • Cash flow...solvency? • Possibility of a hit

38. Now what? • Make a sequel, or a new casual game • You know the technology, process, workflow • You understand casual much better • You have contacts, partners • You can negotiate better royalties • Mac, palm, iPod...but real work

39. Natural Selection 2 • Making Natural Selection 2 on Half-life 2 engine • For digital distribution on Steam • Will probably come back to “casual” in some form • The lessons learned are applicable to “core” games (pacing, attention, learning curve, theme)

41. Takeaway • Not sure if this is a success story or not • I bet my 2nd casual game would sell 2x and be done in 4-6 months • Keep development time down • Less chance of competitors clogging up distro • Less time to cash flow • Use Flash • Take bigger risk

42. More takeaway • It's not just about money • Ability to design fun game with constraints • Assembled a team and learned to run it • Intellectual property • Business development experience • Once you can do something small at very high quality, you can scale it up

43. Questions? • Please fill out your evaluation forms • charlie@unknownworlds.com • Presentation will be available at: http://www.unknownworlds.com/blog • ...and good luck!

44. Appendix • IGDA Casual Games white paper (2006) • Art of the Start – Guy Kawasaki • The Bootstrapper's Bible – Seth Godin • Bootstrapping in the age of blockbuster budgets – Al Reed, GDC 2006 • Built to Last – James Collins, Jerry Porras • Micro-ISV – Bob Walsh • Blue Ocean Strategy – W. Chan Kim and Renee Mauborgne • Angel Financing – Gerald A. Benjamin + Joel B. Margulis • The Experience Economy – B. Pine and James Gilmore