Games Business
Introduction to Games Business / Productivity and Group working
Week 1
Part 1 - Intro
In this week's lecture we covered the general contents of this module, which is the business approach to game development.
It explores the practical aspects of establishing and running an independent studio. It covers Entrepreneurship, Business Planning, Business Development and the creation of budgets and financial projections.
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We discussed various reasons as to why video games are difficult to make.
For a start, games are interactive products that often take a long production time. There are many elements involved from the process of designing a game to the variety of software and hardware requirements to actually make a game. A lot of resources, time, research and testing is needed though the process in order to make a game that could be commercial viable.
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I found this topic extremely important to approach as means to understand the hurdles that come with creating such a product while keeping in consideration that game making is a business, not only a process.
We also looked at the history of games, how the industry and mediums evolved over the years and what factors affect games and their profitability.
Some factors being technological advances, the games market in terms of supply and demand and what the consumer wants/needs.
Part 2 - Productivity
For the second part of the lecture we looked into self-reflection/self-awareness and the Myers Briggs Type Indicator (MBTI) Instrument.
The importance of self-reflection and self-awareness being important to allow us to understand our position in the world, the environment around us and our own strengths and weaknesses. It helps us understand how the world affects us and how we can affect it.
We used the MBTI Instrument to help us understand the view of people with different personalities and how they could possibly perceive the world, how they make decisions as well as their own strengths and weaknesses.
Understanding how differently people operate is important to keep in mind when working with other people specially when working as a team. Knowing what each person brings to the table discussing the various perspectives from each can help seeing various sides to a subject and help formulate better ideas.
We then looked into Leadership, Communication and how to be a team player.
We discussed what makes a good leader and some qualities associated with leadership. And despite having a good leader games are created by teams and the most important aspect of working as a team being communication.
Communication being a key factor when working as a team, this is where self-awareness and topics discussed previously come into play as they allow for better communication within a team setting.
MBTI
During the lecture when going through the MBTI types I volunteered to go through the strengths and weaknesses of my type, the INFP.
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The INFP also known as the Mediator, according to the 16personalities website has their strengths and weaknesses listed as the following:
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Strengths
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Empathetic
Generous
Open-Minded
Creative
Passionate
Idealistic
Weaknesses
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Unrealistic
Self-Isolating
Unfocused
Emotionally Vulnerable
Desperate to Please
Self-Critical
I personally agree with most of the listed strengths and weaknesses.
Speaking as someone who's personality type is more close to INFP than others and from my own point of view, as far as these traits go I find that people with this personality type are a great addition to any team given how they value their own teammates time, work and effort. However the weaknesses denote how they may fall short in positions that take a leadership role.
I feel that the strengths in particular could make the individual contribute higher level of understanding between the ideas presented by the team. As they are capable of taking all these ideas and help find a common ground between them while keeping an open mind even if these ideas conflict with their own, they are adaptable.
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When it comes to their weakness, individuals of this personality time do get overwhelmed rather easily when things do not go as they envisioned, they will often give priority to the ideas of their teammates not really pushing for their own. They may tend to value their teammates time and effort more than their own which can result in a cycle of overwhelm and self-criticism.
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In general individual with the INFP personality type are very loyal to their team as long as the team works to a common goal that aligns with their goals and values, they become passionate and invested in the project prompting them to give their all even if sometimes it costs them something. They are however reluctant to admit when they are struggling due to fear of appearing that they are falling behind which could result in displeasing the team.
Group Project - Team
The fist step we took was assembling a team. For this group project we made a group of 4.
We set out to meet every week to plan, set goals, discuss and divide tasks among ourselves.
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The first thing we did to organise ourselves was to create a Discord server were we could effectively communicate.
I also created an online whiteboard in Figma where we could write any details of the meetings and other annotations.
Group Members:
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Angela
Marius
Michal
Piotr
Economics of Entrepreneurship
Week 2
For this week we did a recap of last week's lecture and went through the "Five Dysfunctions of a Team".
A team development model and discussed how each applies in a teamwork environment starting with Trust as the foundation followed by Conflict, Commitment, Accountability and Results in that order. We discussed how they impact each other and what the lack of either could lead to.
During the lecture we discussed the types of markets, economies, entrepreneurship, game theory and oligopolies.
We also looked into topics for developing a brand, brand equity as well as vision and mission statements.
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For the workshop we took this knowledge and with our group held our Brand development meeting to set our mission and vision statements.
Group Project - Brand Development
Meeting 2
During our group meeting, we discussed what type of company we wanted to make.
It was agreed by everyone that we wanted to make a games company.
As a games company in order to set a mission statement we had to discuss among ourselves what type of games we wanted to make.
Given how extensive the reach of types and themes is in games we had to set on something other than just "making games", we need to set a purpose.
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We discussed among ourselves different types of games all of us enjoyed and reasons we did as means of finding a common ground among us, we set on to make "funny" games.
To delve deeper on the funny theme we further discussed what for us made a game "funny", it was not just about the non-sense type of funny but the funny that made sense. So we set ourselves that we would like to make satirical funny games!
The road to make a game as a business is a arduous one, in order to be able to start making games we need one essential thing: Money.
In order to get money to fund our games we had to discuss our options to do so.
Funds is an option but it is extremely difficult to get funding without a working prototype/pitch for a game/IP.
So we brainstormed among ourselves ways to generating funding for the company. Upon consultation with the lecturer, many indie companies offer other services to generate funding whilst working on a game.
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I had suggested IT services given the capabilities of our current team, however it isn't a viable service given the market competition in the area.
We have the advantage of having a team with various strengths, it was suggested that we could offer to make game prototypes in light of that.
Since our team is composed of individuals who can program as well as do art and animation for games it is probably a viable service that we could provide.
And not just prototypes but also specific services related to game making that could be offered under the company's name, such as programming, art and animation services.
We ended our meeting with our mission statement and some ideas of services we can provide to gather funds needed to do what we want to do.
Mission Statement:
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"Our mission is to provide high-quality contract work for video games, infusing each project with our signature satirical humor, and delivering an exceptional and entertaining gaming experience."
Vision Statement:
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"Our vision is to craft hilariously satirical games that subvert genre stereotypes, challenging players to embrace the absurdity while providing an unforgettable and laughter-filled gaming experience."
Discovering and Researching a Business Idea
Week 3
This week we delved in the concepts of a business, critiquing and evaluating ideas, researching ideas, how to analyse data, SWOT and PESTLE analysis and creating a competitor Comparison matrix.
Business are essentially made to provide services and generate profit from them. We looked at the survival rates from small businesses how to start one.
It should start with a "great idea", then the type of business taking into account various factors.
Research should be an essential aspect to get started, this to keep in mind what a day of operations looks like, how much the business needs to spend every month for example and how much it should be generating to cover expenses costs, profit margins and what other business of the same type are producing/offering. Being updated with what affects the market and how it affects it are essential to adapt the business to the market it is operating for.
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We discussed some essential aspects when planning a business, it involves creating a business plan, writing a marketing plan and producing a cash flow for the business.
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Given how much research it takes to successfully adapt and operate a business we discussed what and how to analyse the business environment. Audience and competitor analysis being one of the most important subjects to research as we as a business need to create products/services aimed at them while still competing with other business that offer similar products/services. We are not only competing in terms of prices but on the quality of the product/service, and how to carter it better to the audience we provide for. A good customer service is an example of what to consider in order to retain customers, gather feedback as well as build trust, of which can only be beneficial to the business in the long run.
Group Project - Competitor Comparison Matrix
Meeting 3
For our 3rd meeting, we looked into a few games that we considered funny and their respective studios then evaluated them by making a competitor comparison matrix.
Developer: Running With Scissors
Game(s): Postal series
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They are a small indie game developer that are self funded.
Their team is dedicated, they listen to their fans and feedback of their player base. They value more their fans rather than publishers.
Postal series has a somewhat "crude" humor that is appreciated by their fan base.
Developer: Ryu Ga Gotoku Studio
Game(s): Like a Dragon, Judgement
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Video game developer housed within Sega (big studio).
More of development team for Sega rather than a singular company.
Their main focus has been on developing the Yakuza and Like a Dragon series.
Fully funded by Sega.
Developer: Squanch Games
Game(s): High on Life
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Formed in 2016, they aim to "make stuff that people love", experiences to be immersed in as well as crazier experiences to play with a group of friends.
Founded by co-creator of the Rick and Morty cartoon series.
The interest in the Rick and Morty series may have led its fan base to this studio's games.
Setting up a UK business
Week 4
This week we went over the legal procedures to setting up a company in the UK.
We covered the different types of companies that we can setup in the UK, the advantages and disadvantages of each type.
It was discussed why businesses exist as a separate legal entity and what it means for the parties involved, we further discussed the responsibilities in terms of tax for each of the type of company.
Lastly we went over the finances of setting up a company, such as the startup costs and sources of financing for the business.
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Group Project - Roles and Responsibilities
Meeting 4
This meeting we approached various subjects about how the project was coming along.
There was some issues to be addressed as some of us were having questions on how to proceed.
We discussed that on top of having the meetings that we could get together and work in the same space.
It was agreed that the following week we would request for help in order to organize ourselves better in terms of task delegation and other difficulties we may be having while working as a team.
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At the end of this week we agreed on a company name and on a division of the C-suite roles.
Company name: Ligma Games
Chief Executive Officer (CEO) -> Michal
Chief Technology Officer (CTO) -> Piotr
Chief Financial Officer (CFO) -> Marius
Chief Experience Officer (CXO) -> Angela
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My role as a Chief Experience Officer (CXO) involves enhancing and optimizing the overall experiences of customers and employees with our brand. My focus is to analyse data, collaborate with the other executives and develop strategies to ensure positive experiences with and within our services and products.
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I think it is a role where I can put my strengths to good use as it is people and experience centered and I would like to give them the experience that I can within my capabilities.
Business Models
Week 5
This week we delved into finances, operations and logistics. We talked about business models and different types of income before discussing pricing and the importance of making a budget for our business.
Personal Survival Budget
Part of the tasks was to create a personal survival budged based of a template provided.
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As part of my budget I assumed being under employment and considered my actual current expenses in the process.
Laying down my personal expenses has made it more clear to me the importance of allocating funds to be aware of how much my basic needs need financially, these being Rent, utilities, tax, food, broadband, mobile phone and transportation. Once these basic needs are met I could then allocate funds for other non-essentials, for example, not every subscription is an essential but a commodity for quality of life in some cases.
The same could be applied in a business setting, by allocating funds where needed and with the surplus increase the quality of life of the business in order to grow.
Contractual Obligations
Week 6
This week we got to discuss copyright law in the games industry, its importance, what it means and the types of property with emphasis on intellectual property as it is the most relevant type for games in particular.
We discussed further moral rights of licensed work which differ from owning the copyrights of said work and cannot be sold unlike copyrights.
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Then we moved to contracts and contract law, where each contract is an agreement between at least 2 parties that is recognised by law. We discussed the formation of a contract, what it is required in order to make a contract and terms of when a contract ends. Then reaching the responsibilities and obligations of each party that is bound by the contract.
Group Project - Setting up the Business
As part of the workshop task, the group was set to review and sign a Memorandum with all four of the group members signing as an agreement to be a member of the company we have set to create.
We then also reviewed an Articles of Association document denoting each member's responsibilities towards the company.
Memorandum
Articles of Association
Services Contract Part 1
Services Contract Part 2
Branded Price List
Week 7
The task for this week was to come up with a price list for the services we established that we would be able to provide.
We looked at competitors for their range of services and prices and came up with some prices also based on average salaries for production roles.
References
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Glassdoor. (2023). . [online] Available at: https://www.glassdoor.co.uk/Salaries/london-game-programmer-salary-SRCH_IL.0,6_IM1035_KO7,22.htm [Accessed 22 Oct. 2023].
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Glassdoor, (2023). Game Artist Salaries. [online] Available at: https://www.glassdoor.co.uk/Salaries/2d-game-artist-salary-SRCH_KO0,14.htm [Accessed 22 Oct. 2023].
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Glassdoor, (2023). Game Animator Salaries. [online] Available at: https://www.glassdoor.co.uk/Salaries/game-animator-salary-SRCH_KO0,13.htm [Accessed 22 Oct. 2023].
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Glassdoor, (2023). Game Rigger Salaries. [online] Available at: https://www.glassdoor.co.uk/Salaries/character-rigger-salary-SRCH_KO0,16.htm [Accessed 22 Oct. 2023].
Pitch Deck and Materials
Week 8
For this week we had to start coming up with a pitch presentation for our business.
During the lecture we discussed various methods to get funding for businesses/games such as publisher and VCs (Venture Capitalist).
The main theme of this lecture however was to know what to consider when pitching for funding/clients.
This covered how to make a good pitch and how to deliver it based on who we are pitching to.
The four of us delivered the presentation on a later week.
Below is the finished presentation for the presentation week.
Trade shows and Conferences
Week 9
For this week we were to consider networking events and trade conferences relevant to our company.
We have considered a few and have estimated costs to attend for 3 people, some events we considered expositor booths as these would be relevant in further stages of the company's own game IP and company exposure.
Develop Brighton (July - 3 days; 3 people)
Considerable expenses, booth to be considered depending depending on company growth. For the first year make full use of the free expo pass and surrounding events to expand network.
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Allow £1500 for stay, travel, food, extra events, misc expenses.
If including booth allow for £5000 to also include marketing materials for the booth.
Stay: Brighton
The Beach Hotel
2 nights, 3 people - 9 July – 11 July 2024 - £360
3 nights, 3 people - 9 July – 12 July 2024 - £540
Travel: London - Brighton
Coach per person - £20 return (£60)
Train per person - £39.60 off-peak return within a month (£118.80)
Conference: Develop Brighton
Expo Pass - Free
https://www.developconference.com/event-info/passes-pricing
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Expo booth - Booths are available in a range of sizes from 6m2 and are charged at £440/m2. (£2,640)
https://www.developconference.com/get-involved/exhibitor-sponsorship-opportunities
WASD (April - 3 days; 3 people)
Relatively cheap to attend, Industry pass to access the Business Lounge for networking.
Travel: London Area
London Day Travelcard - £15.20 per day per person (£136.80)
Total - £331.80
Game Dev London Expo (March - 1 day; 3 people)
Relatively cheap to attend, showcasing for the day may be worthwhile and a consideration for at least for the second year of the business when we should have a demo ready.
Travel: London Area
London Day Travelcard - £15.20 per day per person (£45.60)
Event: GDLX
Ticket + After-party - £30 per person (£90)
https://www.gamedev.london/gdlx-23
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Showcase - £200 (Allows 2 tickets)
“This year, a showcasing fee of £200 has been implemented to guarantee attendance at showcases and minimize cancellations. The fees collected will be utilized towards securing high-quality equipment such as monitors. It is possible that a portion of the fee may be refunded after the event.”
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Materials/Equipment - £400
Allow some funds to spend on marketing material for showcasing
Total
Attending - £135.60
Showcasing - £675.60
EGX (October - 4 days; 3 people)
Relatively cheap to attend given that we can apply for Industry Passes for free, while not all 3 people are required to attend I still considered travel for all should that be the case.
Travel: London Area
London Day Travelcard - £15.20 per day per person (£182.40)
Event: EGX
Industry Pass - Free
https://www.egx.net/london/en-gb.html
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Showcase - £550 per playing stand + £300 per pc + £200 Artwork (£1050)
Source – EGX rate card 2018
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Materials/Equipment - £400
Allow some funds to spend on marketing material for showcasing
Total
Attending - £182.40
Showcasing - £1,632.40
Action list from Tutorials
Week 10
This week was feedback week for the group presentation we did.
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During the presentation all for of the group presented some of the slides, each of us took the slides that contained mainly the sections of work we had worked on for this group project.
Michal, who worked on the presentation, presented the initial slides introducing the company, each of the members as well as explained what we do and why we do it. Marius presented our market research and our competitors. Piotr presented the services offered by our company, their structure and pricing. Meanwhile I gave insight into the way we worked on the projects and how we were structured them. I also explained our short, medium and long term goals as a company. Michal then finalised the presentation by saying why choose us to work with.
We were asked a few questions after we finished presenting some of which were:
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What would our daily budget be?
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What software are we going to use?
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How long would take us to complete a minute-half cutscene from scratch?
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Are we going to take on big projects?
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Are we going to hire freelancers for those big projects?
I believe we were readily able to answer the questions taking into consideration all the planing and work we have done previous to the presentation.
Overall the feedback was positive and encouraging, I believe it was a very good presentation taking into consideration how nervous I personally was and the others managed to pull it off quite well in comparison.
Sometime after the presentation we discussed what we could work on to be ready for submission coming up with the following action list:
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Angela: Research events and all the costs involved for our team to attend them and update the cash flow with this information.
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Marius: Work out the hours our team can spend working on our game alongside working on the services we provide and updating the cash flow.
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Michal: Designing the group presentation, review the business plan and make any necessary adjustments.
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Piotr: Research competitors and based on results create a branded price list for our company services. Finalise the business plan.
Individual Essay A2
Week 11
Throughout the semester I learned quite a lot from both the lectures and working on the group project.
Even being a business centred module, it covered so much more than that, starting from insight on what made the games industry become what it is today, a general overview of the history of games business to modern day. How the modern industry is currently doing, and which sectors are getting more attention from the public. This immediately brought a realisation of what I am up against if I am to make it here, and it looks harsh, there was already a seed of doubt in my head but at least I may be more ready to tackle it after all this.
Doubt, it is a strong word, an even stronger feeling – so much that I even doubt if the contents of this “essay” really fit its reflective requirement – but by no means doubt is dispensable, something that became apparent while working on this module’s group project, and probably the basis for my pathway from here.
Just before grouping together for the group project, we had a little “what type of person are you?” session with the MBTI Instrument (Free Personality Test | 16Personalities, no date; ‘Myers–Briggs Type Indicator’, 2023), just to make us aware of the fact that we would be working with different types of people with different strengths and weaknesses when it comes to working together.
Then I grouped together with Michal, Marius and Piotr. The first few meetings overall went well, even though we were lost at first on what to do we have managed to come up and progress though our weekly tasks and divide roles effectively, I was honestly concerned but decided to trust my teammates.
We set up our own Discord (Discord Inc., 2015) server to facilitate communication, file sharing, and online meetings. We also set up a Figma (no date) whiteboard to keep track of meeting all in one place.
So, we as a group decided to create a games company that would offer services based on the skills that we already have and realistically could offer. All of us being able to work in engine, two of us mainly following the programming pathway (myself among them) and the other two following the more artistic pathway meant we could offer a quite varied set of services. With a team that can offer a lot means more possibilities and a bigger chance at something potentially successful.
As for the group project itself, my main tasks in this group project were research into every considerable expense and work on the cash flow as I thought that having this would give more insight into how early we could expand given the company's financial flow, this is where the doubt I mentioned early really shinned, doubt brings out questions, many questions. What are all the possible expenses that a business of the type we agreed could have? What are all the possible software we may have to use for all the services we can provide? Where do we get funding from? How would we balance our own wages from the company when it cannot support paying us full-time in the initial years?
Surely some of the questions were answered throughout the course of the module, but a quite a fair bit of research went into finding out what our needs were and how much would those cost us on a monthly basis, and how could we cut some costs somehow to get a good balance of costs/profit knowing that we would be struggling to make profit in the first couple years.
Despite not being very good at numbers I am a numbers person, if the numbers match up then it can dictate the direction forward. Without knowing the numbers, it would be very hard to make such decisions, while they can’t fully predict the future, they give a pretty good idea of where things are heading towards.
While keeping in mind all the questions and working on how the cash would flow it gave me a somewhat educated guess on what we could achieve and allowed me to pitch in my opinion on the possible goals of the company. I believe that I have extensively informed my teammates and discussed with them my discoveries while working on this specific task of the project which I think was very much invaluable.
As for my own performance, when we first started, I had no idea how to work with excel, I knew I was not suited to write official documents so really took upon myself to do the money bit. Again, I had doubts of how much valuable my own contribution for the project was, but by the end of it I came to realise and appreciate how much it was worth. I also appreciated how much effort and work my teammates put into their own tasks and how considerate they were of my own input based on my work so far along the project.
For the big question, what exactly is it my role in the games industry?
I would like to believe I could make it as a programmer, doubt is a two-edged sword, while it would work wonderfully for all the problem-solving aspects that you need to consider while writing code, all the implications, and even the debugging, it strikes me on a more personal level if I can make it or not. Doubt is good up to the point when you start doubting your own capabilities. Realistically I will never be the best at what I do but I know I have the capacity to be very good. I want to be able to prove that as a programmer despite the doubt.
On the technical aspect, I know I am also able to get good work done from various aspects of game development, as a matter of fact I learned a great deal of them throughout the course, I am comfortable working with different types of software and producing work as long as there are clear objectives, I am able to consider implications and pipelines in between the different software which gives me a better understanding and better guesses for troubleshooting when issues do arise.
On the planning, design and decision-making is where I struggle more, I feel confident in giving input based on research but not so confident in dictating a course of action that could affect a project and/or company. As much as I enjoyed researching, punching in numbers, reading numbers and pitching in ideas and possibilities based on them, my strengths are in the practical side of the industry, that is where I see myself.
As to what I need to do to get there, a lot of it involves networking, something I personally struggle with, but is an essential part of it. Being able to from professional relationships with my peers and learning how to work with other individuals that have a different focus in the game development process, not only the individuals that I would have to work with on a project but also the ones from management positions. I need to put myself out there to form these connections and actively participate in events that are games industry related. However most importantly I need to keep working on improving my skills so that I can become a valuable asset to any potential company in the industry.
References
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Discord Inc. (2015) Discord [Computer program]. Available at: https://discord.com/ (Accessed: 21 December 2023).
Figma (no date) Figma: The Collaborative Interface Design Tool. Available at: https://www.figma.com/ (Accessed: 21 December 2023).
Free Personality Test | 16Personalities (no date). Available at: https://www.16personalities.com/free-personality-test (Accessed: 21 December 2023).
‘Myers–Briggs Type Indicator’ (2023) Wikipedia. Available at: https://en.wikipedia.org/w/index.php?title=Myers%E2%80%93Briggs_Type_Indicator&oldid=1190791148 (Accessed: 21 December 2023).
Final Hand In
Week 12
Upload all business plan documentation in your final blog entry. I am expecting the following:
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Completed business plan
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Supporting documents (price list, pitch deck slides...etc)
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Cashflow forecast
Business Plan
Cash flow forecast
You can download the excel file which includes all 3 years of Cashflow, Startup Costs, Sales Forecast, Package Information details and Profit & Loss.